Special NASPL 2013 Conference Recap

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

INSIGHTSNovember/December 2013 Special NASPL 2013 Conference ReCap A Look Back on NASPL 2013 from Providence, RI Giving Their All Dozens of volunteers ensure that you have a favorable experience at every NASPL annual conference NASPL 2013 Trade Show Interactivity was all the buzz, but interest in innovative retail solutions was also front and center Vendor Panel Thoughts from the Vendor Community Holiday Instant Making a Difference Ticket Catalog Featuring Terri Kiernan, NASPL Lotteries show off their Holiday Assistant to the Director, Rhode Island Lottery Collections for the upcoming Holiday Season The “Passing2 INSIGHTS September/October 2013 of the Gavel” Buddy Roogow, the out-going NASPL Presi- dent, passes the NASPL Gavel to Gary Grief, the next NASPL NASPL Staff President. David B. Gale Executive Director Thomas C. Tulloch Director of Administration Andrew White VP of Operations Tamika Ligon Director of Program Planning From the President John Koenig Graphic Designer Janine Hutzell Accounting What a week in Providence! Many thanks to Gerry Aubin and the Patricia McQueen Staff Writer

entire team at the Rhode Island Lottery Jake Coy Vendor Relations for providing us with a perfect venue, beautiful weather and a wonderful NASPL Mike Duff NSI Coordinator conference. Our outstanding NASPL staff along with the many volunteers ensured all of our conference needs were met. Not to be overlooked were the contributions NASPL Executive Committee of our important Associate Members, who • the Professional Development Semi- are so critical to the success of our indus- Gary Grief NASPL President nar in July 2014 hosted by the South try and the richness of our conference. Carolina, and Paula Harper Bethea NASPL First Vice-President The educational aspect of NASPL ’13 • our annual Conference and Trade was extraordinary. David Rubenstein and Terry Rich NASPL Second Vice-President Show in September 2014 hosted by Daniel Pink provided us with fascinating the New Jersey Lottery. May Scheve Reardon Treasurer insights from their unique perspectives, and the breakout sessions were no less Rose Hudson Secretary It’s up to us to meaningfully con- outstanding. tribute to NASPL, to attend and actively Buddy Roogow Immediate Past President I’m honored to be following Buddy participate in meetings and conferences, Roogow as NASPL President in the com- Greg Mckenzie Pres. Interprovincial Lottery to encourage and support our staff’s at- ing year. Buddy’s efforts have helped our tendance at our educational events, and Carole Hedinger Region I Director industry continue to move forward in a to be engaged in the regular exchange meaningful way. I’m hoping to continue Alice Garland Region II Director of information that NASPL provides. We the momentum that Buddy has provided must ensure that NASPL stays positioned Randy Miller Region III Director us and, with the help of our outstanding to be the organization that helps take our and talented Executive Committee, take Jeff Hatch-Miller Region IV Director industry to the next level. our organization to even higher levels. And speaking of taking things to the My goals for NASPL over the next next level, be sure to take time to check year include continuing to chip away the out the NASPL Matrix website which al- barriers still preventing our industry from lows our membership unique insights into penetrating the major “big box” retailer lottery sales and transfer information, locations, putting a laser focus on better game types, posting of past presentations utilizing our lottery “brand” on a national INSIGHTS from NASPL educational events, award scale and generating maximum exposure winner information, and the ability to for that brand, and staying true to our Circulation: download all submissions from this year’s core value of responsible gaming. Lottery Insights ISSN 1528-123X, awards program. November/December Issue 2013, That said, collaboration will be the I am truly honored to serve as your Volume No. Fourteen, Issue Five. key to our success in every initiative of NASPL President and I look forward to Published bi-monthly by NASPL which we embark. That’s not always easy. working with my talented colleagues on (North American Association of State If it were, they wouldn’t need us. the NASPL Executive Committee and the and Provincial Lotteries) I’ll be reminding you over the coming entire membership over the coming year. months of the many opportunities to par- 1 South Broadway, ticipate in NASPL events this year, such as; Geneva, OH 44041

© 2013 All rights reserved. • the Lottery Leadership conference in April 2014 hosted by the Missouri NASPL Email: [email protected] Lottery, Gary Grief Web Site: www.naspl.org • the all-new Lottery iGaming/Design Executive Director Phone: 440.466.5630 Symposium in May 2014, Texas Lottery Commission Fax: 440.466.5649 INSIGHTS November/December 2013 3 November/December 2013 4 Around the Industry What’s happening around NASPL 10 Seeing Prize Structures Stephen Wade, Research and Development Manager, Washing- ton’s Lottery and Principal, Lottery Management Consulting, LLC 14 Making a Difference: Terri Kiernan, Assistant to the Director, Rhode Island Lottery 24 18 Lotteries and iGaming: Q&A with Buddy Roogow 20 NEW JERSEY LOTTERY RENEWS ITS COMMITMENT TO PREVENTING UNDERAGE GAMBLING 24 Music, Mutts and Mayhem! 28 By Patricia McQueen, NASPL Staff Writer 28 Giving Their All By Patricia McQueen, NASPL Staff Writer 38 NASPL 2013 Addresses Issues of the Day By Patricia McQueen, NASPL Staff Writer 44 Thoughts from the Vendor Community 44 By Patricia McQueen, NASPL Staff Writer 48 NASPL 2013 Trade Show Recap

NASPL 2013 Conference Recap By Patricia McQueen, NASPL Staff Writer 56 NASPL Holiday Instant Catalog 78 56 2013 Sales Report 92 All NASPL 2013 photos by Domagalski Photography Third Quarter Calendar Sales By Product www.domagalskiphotography.com 2012 VS. 2013 4 INSIGHTS November/December 2013

Around the Industry A look at what’s happening around NASPL

Roboreus marks of Europe’s leading lottery brokers, Tipp24, for a 25.7 per cent stake in expansion of geo-based the lottery tech company in Decem- ber last year. offerings with “We’re optimistic about the coming year,” comments James ‘Geonomics’ rebrand Oakes, CEO of Geonomics. “We’ve been working hard on refining both NASPL BOARD OF DIRECTORS Follows £10m investment our draw-based and instant win of- from leading European online ferings, making our platform flexible UNANIMOUSLY APPROVES to the needs of lotteries of varying lottery broker Tipp24 sizes. We’re also pushing the bound- ENDORSEMENT OF HOLIDAY aries of the technology incorporated in our games. For example, working RESPONSIBLE PLAY CAM- mobile functionality into our offering is the next logical step – especial- PAIGN ly since the focus of our games is location.” At an October meeting of NASPL Tipp24’s expertise in user lottery directors, a measure endors- experience, marketing and customer ing the McGill University/ National retention is building on the existing Council on Problem Gambling (NCPG) strengths of Geonomics’ indus- Holiday Campaign was passed unan- try-renowned development team in imously. creating leading-edge second-chance The campaign, a collaborative games like Treasure Hunt that are effort between the International both technologically robust and hold Centre for Youth Gambling Problems appeal for players in an increasingly and High-Risk Behaviors at McGill digital world. University in Canada and the NCPG, “Our online game that’s live in encourages the message that lottery the UK continues to be a strength tickets should not be purchased as in terms of development, enabling holiday gifts for children. It includes Roboreus, the creator of inno- us to constantly test updates to the a pre-produced playcenter insert vative geo-based lottery game Geo- game on actual players – and we where a lottery can insert their logo Sweep, is rebranding as Geonomics have plans to expand our player as a sponsor, and the shell of a news as part of the company’s continued base here in the UK in the coming release ready for local customization. expansion of its location-based months,” comments Oakes. Materials were produced for the offerings. Alongside the rebrand, campaign by the Kentucky Lottery the company has recently added to Corporation. its portfolio second-chance offering The resolution acknowledged Treasure Hunt, an instant-win trea- NASPL “promotes responsible play sure-finding game, for the US lottery of lottery games and products at all market. times…and member lottery organi- The rebrand follows an invest- zations have a high commitment to ment of ten million pounds by one

Welcome to the NASPL Matrix NRI Visit the NASPL Matirx Now at: www.nasplmatrix.org INSIGHTS November/December 2013 5 6 INSIGHTS November/December 2013

Around the Industry A look at what’s happening around NASPL

ensuring responsible play of lottery campaign,” said Dr. Jeffrey Der- games and products.” By recogniz- evensky, the Centre’s co-director. ing the holiday gift giving season as “Along with NASPL’s support, more an appropriate time to remind the and more lotteries have joined the public about responsible play, the campaign and continue to see the measure resolved “the holiday cam- need to raise parental awareness paign is an effective way to promote about the risks associated with Scientific Games Launches Self- responsible gift giving of lottery underage gambling. Such messag- games and products and that mem- es endorsed by lotteries and the Service Cash Redemption Kiosk clinical community serve as an important way of raising awareness Scientific Games Corporation recently announced that lottery products and gambling the launch of a self-service cash redemption kiosk as are for adults.” an addition to the Company’s SafeCash™ product line “The unanimous endorsement of secure cash management systems for gaming route GIVE RESPONSIBLY of the campaign by NASPL is a operators. Offering operators and players advanced significant step that sends a strong security and self-service technology, the kiosks will Lottery Tickets Aren’t Child’s Play signal across the entire gaming initially roll out in the state of Illinois (U.S.) this month. industry,” said NCPG Executive “Scientific Games has delivered advanced tech- Director Keith Whyte. “We believe nology for the global gaming industry for more than 40 responsible gaming is a positive years. Our innovative new SafeCash self-service kiosk approach to minimizing gam- reflects the benefits of a long history of manufactur- bling-related harm and therefore ing expertise and deep knowledge of highly secure maximizing public benefit. We’re systems that can meet the cash management needs of Gifts for Gifts for proud to work with NASPL and look Youth Adults operators,” said Brooks Pierce, Chief Revenue Officer of forward to additional partnership Gaming for Scientific Games. “The self-service solution opportunities.” offers our same world-recognized standards of security This holiday season marks the This message from with the International Centre for Youth Gambling Problems at McGill University (Canada) and the and integrity to players for their cash redemption National Council on Problem Gambling (US). www.ncpgambling.org/holiday www.youthgambling.com sixth year of the campaign. Last transactions.” year, 37 lottery organizations world- Designed with a player-friendly, touchscreen inter- wide formally participated in the face for convenient voucher redemption and optional initiative. bill breaking in international currencies, the self-service ber organizations are encouraged NASPL members who partic- SafeCash increases operator cash handling efficiencies to participate in this effort to the ipate in the campaign are eligible with one of the industry’s largest capacity commercial extent allowed by their governing for awards given at the organi- coin dispensing units. The entire SafeCash product line laws and regulations.” zation’s annual conference. The was designed for maximum reliability, offering opera- The measure was authored Connecticut Lottery won the 2013 tors efficient service and repair, and all units feature a by the Director of the Maryland U.S. award and the British Columbia strong box for maximum security in route locations and Lottery and Gaming Control Agency Lottery Corporation won the 2013 for operator assurance of secure transactions. Stephen Martino. “NASPL and its international award for materials The self-service SafeCash connects to an inter- member lotteries are aggressive they produced in support of the net portal system, providing operators with detailed, advocates for responsible gam- campaign. real-time accounting reports and unit status reports for bling awareness and promotion For more information about cash replenishment. It is certified by Gaming Laborato- of problem gambling solutions,” the campaign or to join the ries International® (GLI) for redemption terminal stan- he said. “Embracing the McGill/ campaign, please contact Lynette dards and by Underwriters Lab® (UL) for product safety. NCPG holiday campaign is entirely Gilbeau at the Centre (lynette.gil- “As Scientific Games completed its merger with consistent with our core commit- [email protected]) or Jocelyn Wilcox WMS this month, we are combining our collective ment to engage our customers and ([email protected]) at the expertise to offer customers an expanded portfolio of grow our businesses appropriately. NCPG. Lotteries that responded by capabilities,” said Pierce. “The SafeCash self-service The directors’ unanimous vote in November 8th will be included in kiosk launches at an excellent time. We now have the support of the holiday campaign the NCPG and the Centre’s press re- ability to package our SafeCash products with WMS’ affirms this belief.” leases, featured in articles and ads top-performing gaming machines and innovative game “We at The International appearing in Insights, and distribut- content, and leverage our long-standing relationships Centre appreciate NASPL’s proactive ed to other media outlets as well. with route operators to offer a very powerful solution stance and support of our holiday to customers worldwide.” 13-01303 SGCORP NASPL AD_MECH.pdf 1 4/15/13 2:51 PM

INSIGHTS November/December 2013 7 8 INSIGHTS November/December 2013 NASPL 2013/14 Executive Committee

NASPL First NASPL Vice President Treasurer Paula Harper May Scheve Bethea Reardon Executive Director, Executive Director, South Carolina Missouri Lottery Education Lottery

NASPL Second NASPL Vice President Secretary NASPL President Terry Rich Rose Hudson Gary Grief President & CEO, President & CEO, Iowa Lottery Louisiana Lottery Executive Director, Corporation Texas Lottery Commission

“One reason why my lottery sales have grown is because I treat my a technician installed a new one. They always make me aware of new customers like they are special. But just as important is the fact that technology, and ask for my opinion on how their ideas will work with GTECH, working with the lottery, treats me like I’m important too; customers. That kind of hands-on support from GTECH has helped me they are always there for me. When I let Denise in GTECH product grow my lottery sales and keep my customers happy.” marketing know my scanner wasn’t working well, right away Karan Pathania, Convenience Plus, Rhode Island Lottery Retailer

For more about this story and others like it, visit us at gtech.com.

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. INSIGHTS November/December 2013 9

NASPL NASPL NASPL Immediate Region I Region II Past President Carole Alice Garland Executive Director, Buddy Roogow Hedinger North Carolina Executive Director, Executive Director, Education Lottery DC Lottery New Jersey Lottery

President NASPL NASPL Interprovincial Region III Region IV Lotteries Randy Miller Jeff Hatch-Miller Greg McKenzie Director, Executive Director, North Dakota Arizona Lottery Senior Vice President, Lottery - OLG Lottery

For more about this story and others like it, visit us at gtech.com.

Seeing Prize Structures Stephen Wade, Research and Development Manager, Washington’s Lottery and Principal, Lottery Management Consulting, LLC

Scratch tickets are the merchandise face of the lottery. That face, that appearance, is developed with care. No doubt the “faces,” singly and collectively, have a big role in getting the player ready to play. An attractive graphic theme can support the market success of a game. Subtle changes in presentation may have a significant impact on how players respond when they first see a game.

However, it is hard to imagine that an attractive face could I am a visual person, and in order to really master the concept make a game successful if the game does not also deliver I had to use it to build a graph. I was successful in that, and in prizes. Subtle changes in the prize structure may also have a the balance of this article I will explain how to interpret my significant impact on how a game fares in the market. visual representation of the Likely Win Experience. Lots of people are involved in the design of the instant scratch-off games that our lotteries sell. Many of them are Of course, I implemented the conversion from numbers to skilled in building and appreciating visual presentations. A pictures within a spreadsheet, and I am happy to share that quantitative concept like “the prize structure” may not draw too. For now, please assume that we have located a table their attention. Even if it does draw their attention, it may be representing the prizes in a $2 scratch game called “Bingo difficult for them to consider making changes, subtle or large, Bingo,” and have pasted that into a workbook I have provid- in something that cannot be seen. ed. The workbook returns a graph that represents the Likely Win Experience of a typical player as that player spends up to Here is where I think I can help. I can translate from numbers $1000 in the game. to shapes. I have worked out a way of taking the quantitative specifications of a scratch game and making it into a picture The horizontal axis of the graph represents the money spent that is not hard to interpret. The picture represents the Likely by the player, increasing from left to right. The vertical axis Win Experience provided by a game to its players. represents the amount that is likely to be won.

For the Likely Win concept, I am indebted to my friend M., Each prize tier that is likely to be won is represented by a the lottery-playing economist. It was M. who pointed out wedge of distinctive color or pattern. The sharp edge of the that, if we know the kind and number of prizes in a Scratch wedge lies at the level of spending where winning that prize game and the total number of tickets printed, it is possible to first becomes more likely than not. The thickness of the make good predictions about the wins that the typical player wedge represents the dollar amount that is likely to be won. will experience in that game. In particular, it is possible to The wedge grows thicker as the likelihood of winning, and appreciate how the kind and amount of prizes won will be winning multiple times, increases. related to the amount the player spends. Bingo Bingo has 15 different prize tiers, representing prize M., however, was content to communicate this concept just amounts from $2 to $20,000. Each of these is identified in the to me. I had to stretch a little to get the full implications of it. legend of the graph. However, there are only seven colored INSIGHTS November/December 2013 11

Bingo Bingo

$700 Likely Win Experience

$600 Bingo Bingo 20000 $2 $500 1000 500 64.9484% Prize Expense 250

$400 200

150

WIN 100

$300 50 40 30

$200 25 10 5

$100 3 2

$0 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 SPEND wedges in the chart. This is because for seven of the 15 prize part of the likely experience: $2, $3, $5, $10 and $25. The tiers, the number of winning tickets in the tier is high enough combined value of these wins can be read from the graph for that a person spending $1000 is more likely than not to win any level of spending, as the point where a horizontal line one or more of these prizes. That is, the probability of winning from the top of the $25 wedge strikes the vertical axis. This at least one of these prizes is greater than or equal to 0.5. For lets us see at a glance that for $1000 spent, the player is likely the other eight prize tiers, the number of winning tickets in to win about $540 in these prizes. In other words, over most the tier is so low that a person spending $1000 is more likely of this chart, the player is winning back about 54% of what is than not to miss seeing that particular prize. spent. Using the same graph-reading method, we can see that a little less than half of this prize money (half the thickness of Of course, the horizontal axis of the graph could be extended the stack of wedges) comes in prizes of $2 and $3. to show the spending level at which seeing one of those rarer prizes becomes likely. But the message of the chart is: the Players who spend less than $100 are unlikely to win the $10 experience of playing up to $1000 in this game has little or or $25 prizes. These players are likely to win back only about nothing to do with those prizes. Or in other words: the experi- one-third of what they spend. ence of playing up to $1000 in this game involves winning the prizes that are shown on the graph. Bingo Bingo has had market performance typical of games of its type. It has a prize expense of about 65%. It is reason- Two of the prize tiers ($50 and $30) are represented by shapes able to conclude that the market performance of the game is that appear only above $800 in spending. The $30 wedge is supported largely by the winning experience described above, inserted under the $50 wedge, lifting it up. This represents the corresponding to 54% prize expense. The “lucky” (or very fact that prizes of $30 are even rarer than prizes of $50 in this intense) players account for the rest of the prize value. game. A $40 prize is among those appearing in the legend but (because it is too rare) not appearing on the chart. The shapes in the first chart represent the experience of players playing Bingo Bingo. The shapes in the second chart Between $140 and $850 of spending, only five prize tiers are describe the experience of players playing Loteria, also a $2 12 INSIGHTS November/December 2013

Loteria

$700 Likely Win Experience

$600 Loteria 20000 $2 200 $500 50 64.0942% Prize Expense 20

$400 15

WIN 5

$300 3 2 0

$200 0 0 0

$100 0 0

$0 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 SPEND

game with 65% prize expense. The particular colors used are ence of a player spending $1000. not significant, since Loteria defines fewer prize tiers (unused tiers show in the legend as “0”). Comparing the two charts M. would say the players of Bingo Bingo get “the flavor of the quickly reveals how the players’ experience of these two games game” at a lower level of spending ($140 vs. about $340). That differs. is to say, Bingo Bingo is a little less “chunky” than Loteria. But, he would say, the flavor of Loteria is richer than that of Bingo First of all, the two graphs are very similar in the lower left Bingo. corner, for players spending less than $100. These players likely experience no win larger than $5, and win back about one- Food metaphors are all very well, but I can only translate num- third of what they spend. bers into pictures, not into soups.

The most distinctive feature of Loteria is the big blunt wedge I hope that these charts may prove useful to my readers. I will that comes in at about $350 in spending. This corresponds to make a workbook to generate them available at the web site: a prize of $50. While the $50 prize of Bingo Bingo just made lmcbusinessintel.com. it onto the chart, that of Loteria appears much earlier. Loteria likely returns about 62% of the money spent on it as prizes, to players who spend $340 or more. Only about one-third of this prize money is in prizes of $2 or $3. Stephen Wade, Research and Development Manager, Washington’s Lottery and Principal, Although the games have similar overall prize expense, Loteria reserves very little for prizes that are outside the likely experi- Lottery Management Consulting, LLC INSIGHTS September/October 2013 13 14 INSIGHTS November/December 2013 Making a Difference Terri Kiernan, Assistant to the Director, Rhode Island Lottery

Attendees at the recent NASPL annual conference probably saw one person more than anyone else – although they may not have noticed it because she was never in one place for very long. Here, there and everywhere, Terri Kiernan helped make sure everything was running smoothly behind the scenes. Assistant to the Director of the Rhode Island Lottery, the conference host, Kiernan served as Conference Coordinator for NASPL 13.

“Terri has always done an exceptional job at the Lottery, family, keeping busy with two children – one in college and and when I asked her to be the lead coordinator for NASPL 13, another in high school who is active in basketball. However, she didn’t hesitate for a moment,” said Director Gerry Aubin. she no doubt is looking forward to an upcoming reunion. “She “Knowing Terri’s work ethic and attention to detail, I felt we never told people, but Terri did this all while her husband, were in good hands, but I have to say she went way beyond all John, is serving our country in Afghanistan,” said Aubin. “She expectations in the planning of this conference and brought told me that the conference helped to keep her very busy so every aspect of the planning, even the minor details, to a dif- hopefully the time would pass quickly for him to return home. ferent level. It was apparent from the get-go that Terri was in That’s what an incredible person she is.” full control and had a handle on every detail of the conference. I am so very proud of all of our volunteers, and I am es- What did you like the most about helping the Rhode Island pecially thankful to Terri for making NASPL 13 such a success.” Lottery host the NASPL conference? The least? Perhaps now that the conference is over, Kiernan can final- To be honest, I enjoyed all of it – everything from the ly take a breather. She enjoys spending time with friends and opening ceremony to the closing awards banquet. I never felt INSIGHTS September/october 2013 15 16 INSIGHTS November/December 2013

overwhelmed. It was wonderful working with the people reer here, I have had the pleasure of working for each of the at NASPL – they made it all so easy, they were helpful and only three Directors the Lottery has ever had. didn’t put any pressure on us. If you enjoy the people who The industry has really changed. I remember when Lot- work with, and enjoy what you are doing, of course you are to America first began, with a starting jackpot of $2 million. going to give it your best. That was considered huge at the time. Now we have Pow- There were really four of us on the planning committee erball with $40 million starting jackpots and a cash option. – Director Gerry Aubin, Deputy Director Peg Rose, Marketing And of course there has been a big expansion in the number Manager Melissa Juhnowski and myself. We started plan- of instant games on display at retailers. Here in Rhode Is- ning more than a year prior to the conference. The four of us land we also have VLTs and now table games. Everything just handled everything. But I feel that everyone, down to every seems to grow and grow, and it seems like every year there volunteer, put something into it. It was a collaborative effort. is something new. I am also proud to be a Rhode Islander, so I enjoyed In my current position, I really enjoy being involved in ev- working with the local entertainers and businesses here. erything the Lottery has to offer – I’m seeing everything now If I had to zero in on the biggest challenge, I’d say that and talking to everybody. It has really developed my under- the last week before the event was a little hectic. We had to standing of the lottery industry. In my earlier roles, I didn’t finalize everything – there is so much that goes on behind always see the big picture. It’s really exciting for me to be in the scenes – and I still needed to keep up with my regular this role at this stage of my life – there is always so much to responsibility at the Lottery. But even that didn’t really both- learn. And planning the conference was a great education er me. for me as well. I think the toughest thing was saying goodbye to everyone after the awards banquet. We had worked together so What keeps you dedicated to the Lottery after all these closely for so long, and we formed friendships. I know that years? they are always just a phone call away, but it’s still hard when That’s just my work ethic. I’m dedicated to my work like all of a sudden that close work together just stops. I’m dedicated to my family. I want to perform to the best of my ability, to contribute all I can to the Rhode Island Lottery. Tell us about your nearly 27 years of service at the Rhode Director Aubin makes that really easy, as he is a great role Island Lottery, even back to the beginning when you joined model and easy to work for. in 1986. The conference was a great way to put it all in perspec- I applied for a job at the Lottery after working three years tive – knowing that what we were doing went beyond Rhode as a Legislative Secretary for the Senate Majority Leader in Island, that it spilled into the entire industry. the Rhode Island General Assembly. I was young, and was Certainly over the years, I’ve formed friendships with looking for something with more regular hours than the long many of the people here at the Lottery. And even as others days you get when the Assembly is in session. I began in the have moved on, I’m still in contact with some of them. ticket accounting office helping with a game called the Grand There’s one more aspect – a big one. The money the Lot- Lot. It was a 50 cent game drawn once a week, and of course tery turns over to the state goes to the general fund, which is back then all the ticket handling, inventory and verification disbursed where the need is greatest. So being part of that, was all done manually. From there I went to personnel, and helping the state provide those funds, is very rewarding. then became Assistant to the Director in 2004. Over my ca- INSIGHTS September/october 2013 17 18 INSIGHTS November/December 2013

Lotteries and iGaming: Q&A with Buddy Roogow

Buddy Roogow is the Executive Director of the DC Lottery and the Immediate Past President of NASPL. In 2011, the DC Lottery was very close to an iGaming launch but was faced with legislative hurdles that pre- vented the online launch. Buddy speaks to Lindsay Kininmonth of geolocation provider GeoComply about the challenges American lotteries face when considering iGaming or iLottery products.

What’s the best way for lottery directors get up to we think it will be a ‘magic pill’ to help us grow our lotteries to speed on iGaming and iLottery? new heights. This is no surprise given our industry’s increasing need to address the demographic and technological shifts oc- First, do the legal and regulatory review. Congress continues curring in gaming and consumer purchasing patterns in general. to consider, but has not acted on, legislation to regulate the It’s only natural that we all look to the Internet to pull in new Internet gaming marketplace. NASPL is doing its best to keep customers beyond our current retail base. But are we prepared the lottery industry up to date on new developments. Then for this? One way to begin the process is to be as well versed in try to determine what capabilities exist in the ever-expanding the emerging technology products as possible in order to effec- vendor marketplace to find out who is out there and what the tively leverage the right solutions for our jurisdictions. key benchmarks are. The various conferences that occur so reg- ularly now provide great opportunities to assess the Internet gaming landscape. As always, the more information you collect, And what kinds of technology might that be? the better. It makes sense to really open your mind to new infor- There are so many technological elements that must be ex- mation and learn about the latest developments. plored. If a lottery is exploring Internet gaming, geolocation should be first for legal reasons. Players cannot come from Do you think the U.S. lotteries are currently well outside the jurisdiction and still be compliant with federal law. Lotteries must make every reasonable effort to ensure proper equipped to offer iGaming or iLottery? geolocation has been accomplished in order to make the on- In DC, we will not be pursuing iGaming or iLottery, but for those line transaction legal. Our vendor community must expand their lotteries that do I think there is a common misconception that knowledge portfolios so that border location technology is -re INSIGHTS November/December 2013 19

sponsive to federal requirements and their iGaming and iLot- to endanger what they have now. The competition is ever-in- tery systems can work on all the devices players want to use. creasing. Many jurisdictions in North America have already When DC nearly went online in 2011, our highest priority was embraced or are investigating casino development. And we are to find location technology that would effectively screen for still burdened by illegal gaming offered across the Internet. So proxies, VPN or remote desktop use. The media and the larg- of course lotteries should be looking for new venues and new er community were watching so closely, we couldn’t afford to technologies if we are to remain relevant and meet our juris- accept any default solution and chance letting in players from diction’s revenue demands. As mentioned earlier some lotteries outside the District. Additionally, we took steps to make sure already are selling on the Internet (Delaware, Georgia, Illinois we could identify the location of every computer logging into and Minnesota) and others are seeking to do so. Just do your the system, especially from the same address, to prevent any homework. Assess the risk and put systems and processes in attempts to game the system. Any slip-ups would have brought place to mitigate those risks. Remember, this is not just adding forth major legal hurdles - never mind impacting the player’s a new scratch ticket to your retailers’ display unit. There is more gaming experience. to it than that. Geolocation technology is probably where we all need to begin. Do you think existing lottery vendors have something to offer in the iGaming and iLottery space? So obviously the developing U.S. experience with iGa- Yes, of course. And some of them are expanding their teams ming and iLottery is different from what’s been done in with good new talent to help them. Intralot did just that in DC Europe. by bringing in additional expertise who had on-the-ground -ex Yes, absolutely. The European experience is one from which perience with live Internet operations. My conversations with we can learn. Of course, the regulatory environment is more Scientific Games confirm that they have done the same thing. friendly in Europe but the challenges are similar. Interested lot- I’m sure that GTECH and Pollard have also moved in that direc- teries should utilize both domestic and international expertise tion. We all know too well the responsibility for success and the to make informed decisions on an Internet gaming model that consequences of failure still rest on the jurisdiction, so you can’t will work for our regulations, our lottery organizations and our just sit back and expect everything to fall into place. Asking the players. Our major lottery vendors know us well and I’m sure right questions about fraud prevention, age and location -ver they will make every effort to acquire new technology to en- ification systems, etc., will ensure your lottery has the tools it hance our systems. I know through mergers and acquisitions needs to avoid any legal roadblocks or messy media issues. Lot- they are doing just that. How frustrating it must be for our ven- teries have been great at addressing these issues in the current dor community that the progress is so slow in moving into the retail environment, and need to maintain and transfer the same iGaming and iLottery space. The products are out there and the standards for responsible gaming, anti-fraud, anti-money laun- vendor community is ready to lead, but the legal and regulatory dering, and other considerations to the online world. environments have not yet evolved.

So do you think the market will demand Internet-based Do we need more lottery vendors? lottery solutions? Well, we have four major vendors that provide a solid frame- iGaming and iLottery have been built up as a potential major work for the traditional lottery systems currently in the U.S. And cash cow in recent times; however, I continue to preach that those vendors know all too well the difficulties of our cumber- lotteries shouldn’t ignore the existing platforms that have made some procurement process, so it is to their advantage to keep them successful. They still need to market their retail business expanding their digital channels and utilize the new expertise using the Internet and their websites as well as their traditional that has grown elsewhere. The procurement process in the U.S. advertising venues, rather than just holding off and waiting for has lotteries looking to their primary vendors for new technolo- iGaming or iLottery to happen. Lotteries can make their current gy development. The acquisitions, mergers and contractual re- game portfolio more attractive to the emerging market by build- lationships developed by the major vendors with the emerging ing interactive relationships with their players and making their technology providers may be the best way to bring digital chan- games more rewarding both socially and economically. This can nels forward. Internet gaming opens a whole new can of worms be and is being accomplished without actually selling the games that requires us to evaluate how we could leverage other par- online through the Internet. Social media and the opportunities ties to meet all of our regulatory compliance and operational it presents are growing dramatically and we see competitive requirements. free play happening. In the background, we should be acquiring the right tools and technology needed to prepare for the indus- So what do you see as the key to a successful iGaming try’s eventual expansion into digital channels. Some lotteries, or iLottery launch and who will be next? like Illinois, Georgia and Minnesota, have already done so with Well, as I said previously the DC Lottery will not be pursuing their iLottery programs, and Delaware just recently launched an Internet gaming, but will seek to enrich our current lottery of- iGaming platform. ferings. Whoever takes the plunge now will be the role models for others to come. Time will tell. What are the greatest risks for lottery directors? Well I don’t want to make iGaming or iLottery seem like a no-go zone that should be avoided. Lotteries are a reflection of the governments they represent - they have been cautious to expand government-sponsored gaming and rightfully don’t want NEW JERSEY LOTTERY RENEWS ITS COMMITMENT TO PREVENTING UNDERAGE GAMBLING Council on Compulsive Gambling of New Jersey, Inc. Joins With the Lottery to Heighten Awareness About the Age Restriction on Lottery Play

eaders of the New Jersey Lottery and the Council on Compulsive Gambling of New Jersey met recently at Speedy Mart, a Lottery retailer located in Ewing, NJ, to kick off the annual “Not 18 Yet? No Bet” Awareness Campaign. This campaign reminds residents and retailers that New Jersey law prohibits the sale of lottery tickets by or to anyone under the age Lof eighteen. Carole Hedinger, Executive Director, New Jersey Lottery and Donald Weinbaum, Executive Director, Council on Compulsive Gambling of New Jersey, Inc., renewed their commit- ments to responsible play and the prevention of underage gambling. The “Not 18 Yet? No Bet” campaign is held each year to coincide with the American Gaming Association’s Responsible Gaming Education Week, which was held August 5-9, 2013. “The New Jersey Lottery has a longstanding commitment to promoting responsible play and discouraging underage gambling of any kind,” said Carole Hedinger. “We have an active partnership with the Council on Compulsive Gambling of New Jersey and support their efforts to prevent underage gambling.” As part of its effort, the New Jersey Lottery has prepared a “Not 18 Yet? No Bet” brochure aimed at retailers and players. This brochure provides information about the major types of teen betting, as well as ways to recognize signs of a gambling problem early on. The brochure also tells concerned individuals where to go for advice and help. It is available at each of the more than 6,500 Lottery retailer locations, at all Lottery-sponsored exhibits and events and through the NJLottery.net website. The Lottery provided the Council on Compulsive Gambling with additional “Not 18 Yet? No Bet” brochures, as well as supplies of pencils for distribution to students who attend the Council’s high school lecture series. The pencils are imprinted with the message “LOTTERY IS NOT CHILD’S PLAY, You Must Be 18 Or Older To Play The NJ Lottery.” In addition, the “Not 18 Yet? No Bet” program and the 1-800-GAMBLER® Helpline number are continually flashed on Lottery’s digital messaging screens at all retailer locations. “I am grateful to the Lottery for their support and commitment to all of our initiatives,” said Donald Weinbaum. “The Lottery continues to be a great partner in promoting the importance A) Carole Hedinger, Executive Director, New Jersey Lottery, and Donald Weinbaum, Executive Director, Council on Compulsive Gambling of NJ, Inc., welcome media representatives to New Jersey Lottery’s Annual “Not 18 Yet? No Bet” Awareness Campaign kick-off press conference held at a local retailer location. B) Carole Hedinger presents Donald Weinbaum supplies of pencils containing the message “LOTTERY IS NOT CHILD’S PLAY” for distribution to NJ high school students. C) Carole Hedinger listens as Donald Weinbaum explains the benefit of using the “Not 18 Yet? No Bet” brochure as part of the Council’s high school education program

of responsible gambling and in publicizing the 1-800-GAMBLER® number. If a parent thinks their child might have a gambling problem, they can call that number for advice and help.” The Lottery has had a representative on the Council of Compulsive Gambling’s board of directors since June 1999. The Council’s problem gambling helpline number (1-800-GAMBLER®) is printed on every Lottery ticket, brochure and sign, and appears as a tag line on the Lottery’s radio and television advertisements. Finally, the Lottery’s website directs visitors to the Council’s site (www.800gambler.org), which provides the public with free information and help for compulsive gambling problems.

About the Council on Compulsive Gambling of New Jersey, Inc. Since 1983, the Council on Compulsive Gambling of New Jersey, Inc. has helped problem and compulsive gamblers and their families. The group was a pioneer in the compulsive gambling field and remains one of the leaders in providing professional and compassionate services to a wide range of audiences. The Council’s mission is to provide prevention, education and referral services to anyone affected by this illness. They operate the most widely recognized gambling help number in the nation, the 1-800-GAMBLER® Helpline. The help number is now available in 20 states and offers 24-hour, immediate, confidential assistance to anyone affected by gambling problems.

About the New Jersey Lottery Since its inception in 1970, the New Jersey State Lottery has contributed nearly $21 billion to State education and institutions. In fiscal year 2012, the Lottery provided $950 million to support State educational programs and institutions. More than 6,500 businesses throughout the Garden State prosper from their partnership with the Lottery. Among its beneficiaries are: veterans homes, community and other colleges and universities, school nutrition programs, homes for individuals with developmental disabilities, psychiatric hospitals, higher education scholarship programs and the Marie Katzenbach School for the Deaf. 22 INSIGHTS November/December 2013

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LLI targets the key issues of the industry: Learn strategies and best practices, network and listen to leaders from the industry, participate in Interactive Sessions, obtain solutions, creating a personal definition of leadership, work on a Strategic Planning Project, and participate in specifically designed exercises and activities. Smart business is never a game of chance.

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Lottery Insights Full Page 1013.indd 1 10/10/2013 2:16:44 PM 24 INSIGHTS November/December 2013

Music, Mutts and Mayhem!

The Hoosier Lottery celebrated three of its fabulous games on October 27, and a barking good time was had by all!

By Patricia McQueen INSIGHTS November/December 2013 25

Arfpocalypse Zombie Dog Fest. The event ti- tle sounds strange enough, but would you ever think it would be hosted by a lottery? That’s exactly why the Hoosier Lottery took the plunge, to build on its brand transformation in a continuing effort to appeal to new players by aligning with their affinities,- ex plained Jessica Powell, Vice President, Marketing, for GTECH Indiana, which operates sales and marketing functions for the Lottery under an integrated services agreement. Any by all measures, it accomplished that goal.

“People won’t have purchase intent if they don’t think the Lottery is aligned with their values and their interests,” she said. “We know Hoo- siers are dog lovers, and we know that they are Walking Dead fans, so we delivered tickets that specifically met with those interests.” The Lucky Dog scratch ticket, featuring shelter dogs from around the state, was re- leased in September, followed by the Walking Dead ticket in October. The Lottery also offered Halloween Millionaire Raffle, its name for the multistate themed raffle held this fall.

“We thought about what we could do to bring attention to these three games in such a fun, festive time of the year,” said Powell, and the first idea was a zombie dog walk. But that soon morphed into a brilliant attempt to shoot for the Guinness World Record for the most dogs in costume at a single event. A local band, Here Come the Mummies, was a perfect fit to provide the music. “It was just a unique way to feature the lottery’s tickets in a very fun, unique atmosphere.”

Arfpocalypse was held in Indianapolis on October 27. Attendance was free (adults had to present a Hoosier Lottery ticket) and hit 2,250. There were 835 registered costumed canines, said Powell, falling well short of the record of the Guinness record of 1,326, but “everyone had a fantastic time. It was amazing to see that many dogs in costume together. We had such responsible dog owners that we didn’t have any issues. And everyone was eager – they wanted to make history. They were all there to celebrate their dogs, to see other dogs in costume and to break a record together.”

Not surprisingly, several dogs were dressed up as zombies, even some that carried around what appeared to be a human hand in their mouths. But other popular costumes included bees and hot dogs. There was even one dressed up as cup of Starbucks coffee.

Arfpocalypse was the first time that the Hoosier Lottery, instead of buying a sponsorship package from somebody else, created an event to suit its own needs, “aligning with the interests of our players and non-players. It was a bit of a test for us.” Sponsors included Q95 and Clear Channel, two Hoosier Lottery retailers (Village Pantry and Marsh), Donate Life In- 26 INSIGHTS November/December 2013

diana (an alliance of organ donor agencies), Noah’s Animal Hospital, Harrison College, Liberty Mutual, State Farm and First Friend K9 Training. In addition, there were some 40 animal shelters from around the state that set up booths with pets available for adoption. Several dogs found their forever homes that day.

“It was all about creating awareness for good causes,” said Powell, especially with the organ donor sponsorship and the animal shelter participants. She added that people were giving unscratched Lucky Dog tickets to the shelters, hoping they would win big for a more meaningful donation. “Ev- eryone, including the sponsors, said that they hope we do this again next year, and that we can definitely break the record. On the way out, the people who attended said they had such a great time, and they never would have expected the Lottery to do something like this.”

Middle Right: The Hoosier Lottery set up their Lottery truck for attendees of Arfpocalypse.

Bottom Right: Local band, Here Come the Mummies, performed for attendees after the record attempt. INSIGHTS November/December 2013 27

We’ve made a concerted effort to show that we are not the Indianapolis lottery, we are the Hoosier Lottery. In fact, we are the only lottery that is named after its people.”

And that’s how the Lottery met its goals with the event. While the Lottery did sell tickets at Arfpocalypse, that wasn’t the main purpose. “I think of the ROI as the Return on Inter- action,” explained Powell. “It seemed like our sponsors were very happy. The participants “were just thrilled. So I think we will definitely look at creating events ourselves in the future, instead of just putting a booth at somebody else’s event.”

So expect to see more events from the Hoosier Lottery, scattered around the state. “We’ve made a concerted effort to show that we are not the Indianapolis lottery, we are the Hoo- sier Lottery. In fact, we are the only lottery that is named after its people.” Powell added that her event team has been challenged to do events in all 92 counties, not just in the major markets. “The small towns appreciate it that we are there, that we are recognizing them. And our retailers love the fact that we are now supporting every single county.”

Arfpocalypse certainly did its part to help people think differently about the Hoosier Lot- tery, which has introduced a new logo, a new retail experience and new advertising as part of its brand transformation. “People are seeing the Lottery as more fun, and they are seeing it align with their interests. It’s all about being positive, about aligning with Hoosier values. Our brand measures are going up, and more importantly, our sales and revenue are going up.” 28 INSIGHTS November/December 2013

Giving their ALL Dozens of volunteers ensure that you have a favorable experience at every NASPL annual conference.

All NASPL 2013 photos by Domagalski Photography – www.domagalskiphotography.com INSIGHTS November/December 2013 29

hey might greet you at the airport, or at your hotel. You will find them behind the registration desk, and they monitor every confer- Tence room, official event and the trade show floor. They might pop up other places too – anywhere they might be able to help. Many come from the host lottery, and offer a wealth of insider tips about what to do, see and eat locally. They all are there to help, and they always have a smile on their faces. They are the volunteers that help make NASPL’s annual conference run smoothly.

Others – NASPL staff and the host lottery – may have organized the event, but these volunteers are front and center during conference week. For NASPL ‘13 in Providence, there were nearly 40 volunteers for the event; 15 of those were from the Rhode Island Lottery. Others came from nearby lotteries – Connecticut, Massachusetts and New Hampshire. The New Jersey Lottery sent nine volunteers, as they prepare to host NASPL ‘14 in Atlantic City. Not surprisingly, Rhode Island-based GTECH Corp. sent three volunteers. And perennial volunteer Chip Polston from the Kentucky Lottery is always ready to serve as the voice of NASPL.

Their week begins the Sunday before the conference opens with a social get-together at a local fun-spot. This year they met for refreshments and billiards at Snookers, a sports bar and grill which also happens to be the official home of the New England Pool and Billiards Hall of Fame.

The next day they reported for duty – bright and early for an 8 a.m. Mon- day morning Volunteer Training Meeting. They received a welcome from NASPL’s Executive Director David Gale, a rundown of the duty assignments and of course the official conference shirts – you can always find a volunteer by looking for someone wearing their conference shirt! 30 INSIGHTS November/December 2013

Those volunteers scheduled to work the registration desk during Many of the volunteers from the host lottery are there simply to the week were given additional training on the computer system; help out. The success of the event shines the light on everyone others prepared for their assignments later in the day. More than at their lottery and they all want everyone heading home talking two-thirds of this year’s volunteers were busy that first Monday – about what a great conference it was. They also take the opportu- greeters were at the airport beginning at 1 p.m. and at the hotels nity to learn at an event they might never otherwise attend. beginning at 2 p.m. The registration desk was staffed from 3 p.m. on. Steve Einhorn, a Project Coordinator for the Rhode Island Lottery, was on the schedule for several shifts as a hotel greeter, and also Each day, the volunteer schedules began at 8 a.m., and they helped out with one of the panel discussions and at the trade- served in two- to four-hour shifts, depending on their assignment. show. “I was happy to volunteer when asked,” he said. “You get Once the conference events began, such as the general sessions to meet a lot of people and see what’s going on.” He had never and the tradeshow, volunteers without a specific task were called been to a NASPL conference before, and was looking forward to upon to direct attendees to those events and help with general perhaps volunteering in New Jersey next year. questions and people-moving functions. Another Rhode Island Lottery employee, Assistant Field Repre- The assignments don’t end until the curtain comes down on the sentative John Pettinicchio, put in long hours greeting people at final awards banquet, although most of them continue their work the hotels, and also assisted with the tradeshow. He had a great as they take home news and ideas to their colleagues. time as a greeter. “I’ve been in retail for years, so I really enjoy meeting a lot of different people.” Having never been to a NASPL conference, he tried to use his free time to attend a few sessions Why do they do it? to better understand the industry and learn about products and services on the tradeshow floor. Clearly volunteers are kept busy throughout the week. What’s in it for them? Learning is what attracts many to volunteer their service ata NASPL conference. First-time volunteer Erica Brisson, Marketing INSIGHTS November/December 2013 31

Coordinator/Social Media Operations for the New Hampshire Lot- GTECH Corp. “It’s great to see the other side of the coin after hav- tery, had never been to the event before. She wanted to gain ex- ing been in a vendor’s corporate offices for nearly 20 years,” she perience should her lottery be fortunate to host a future national explained. “It’s great to see what is of concern to our customers, conference, and spent much of her time helping with registration. and to see how our company presents itself in comparison with She had the chance to attend some of the sessions, and planned others.” She had never been to a NASPL conference, but knew to take what she learned home with her to share with her lottery that she would get a different understanding of the pressures on colleagues. “It has been a very good learning experience,” she government officials, of the concerns they face and of what has said. “The most enjoyable thing is meeting all the people,” in both value to them. To gain that extra insight, “I was very excited to be her assigned activities and during the social events. a part of this conference and to support the Rhode Island Lottery as its host,” she explained. DiCenzo helped out during a couple Industry newcomer Andrew Walter, Legal Counsel for the Con- of meetings and general sessions, and spent a lot of her time as necticut Lottery, was asked to volunteer as a way to help him a hotel greeter. A self-described “people-person,” she took every learn as much as he could about the industry he joined last winter. opportunity to brag about the lottery industry and explain NASPL “It has been really good to meet a lot of people in the industry, to those in Providence for other events. She looks forward to vol- find out how other lotteries operate, where we are different and unteering again. “If you are a communicator, this is your audience. where we are the same. I’ve enjoyed that.” His schedule included It is a magnificent opportunity to really learn more about the di- several shifts on the registration desk among other assignments, rectors and the issues in the industry. It’s hard to have the right and he found time to browse the tradeshow floor. If needed, he creative voice unless you are able to directly connect to your audi- looks forward to volunteering again next year. “I am new to lotter- ence to know who it is you are speaking to. I love that.” ies and I can’t think of a better way to learn the overall business than to meet the couple of hundred people that I’ve met here.” Lottery employees from a future host lottery come because they want to learn all they can about what it takes to create a successful Others take the opportunity to volunteer in order to see the in- event, and perhaps even get insight on what they might want to dustry from a completely new perspective. That was the case with do differently. The New Jersey Lottery provided nine volunteers, Judy DiCenzo, Senior Manager of Corporate Communications for Continued on next page... 32 INSIGHTS November/December 2013

Another experienced volunteer from the New Jersey Lottery, Ad- ministrative Assistant Lou Cleary, also logged hours in Halifax and Phoenix. “I really enjoy this,” she said, “and because we’re host- ing it next year, it’s good to shadow people and see what’s going on.” She spent quite a bit of time at the registration desk to gain knowledge of how it works for next year. “I was impressed with how smoothly registration went here.” Additional time as a hotel greeter and helping out during a general session completed the experience. “It’s great to see everything, to meet everyone and to go to some of the sessions. I would probably not be able to come here if I didn’t volunteer.”

That is the common thread for most volunteers – it is often their only opportunity to meet people and attend the industry’s signa- ture event. That’s why they come and that’s why they give it their all. And for that, NASPL is very appreciative. including Executive Assistant Karen Kokoll, who leads the Lottery’s NASPL ‘14 conference committee. “The NASPL annual conferences wouldn’t be what they are today without all the volunteers, and for that we are extremely grateful,” “We’re here to learn all that’s involved with planning and organiz- said Gale. “They put in a lot of hours, and earn every accolade we ing the conference,” she said. “I like the way it was structured – all can give them.” He added that it’s never too early to volunteer for the volunteers really experienced all the different aspects includ- next year! ing registration, conference sessions and airport and hotel greetings. We got a good feel on how it’s going to work. But we do have our work cut out for us – Gerry [Aubin] has done a great job and this will be a tough act to follow.” NASPL would like to thank all of the Kokoll has more experience with national events than many of this year’s volunteers – she had been a volunteer at two previous volunteers for their excellent work NASPL conferences (Halifax and Phoenix). She particularly enjoyed her time at the registration desk this year – meeting people, help- during NASPL 2013. ing them get settled and organized. She also noted that the New Jersey Lottery has already hosted a regional event and a Director’s meeting. “So we have experience and know what to expect – it’s just going to be a higher volume.”

All NASPL 2013 photos by Domagalski Photography – www.domagalskiphotography.com INSIGHTS November/December 2013 33

NASPL ‘13 Volunteers New Jersey Lottery Karen Kokoll, Executive Assistant (2014 Conference Committee Rhode Island Lottery Chair) Terri Kiernan, Assistant to the Director Lou Cleary, Administrative Assistant (Conference Coordinator) Jay Cromwell, Manager of Collections Emmanuel Amos, Supervisor of Public Affairs Judith Drucker, Public Relations Manager Karen Andrews, Video Lottery Systems Manager Sam Fromkin, Social Media Specialist Don Cataldi, Sales & Marketing Mgr. Frances Lioudis, Instant product manager Jeff Clements, Security Manager Debbie Raub, Administrative Assistant Joe DeOrsey, Video Lottery Supervisor Melissa Williams, On-line product manager David Egan, Instant Ticket Development Spr. Bill Wilson, Financial Reporting & Audit Supervising Accountant Steve Einhorn, Project Coordinator Melissa Juhnowski, Marketing Manager GTECH Corporation Nicole Mineau, Assistant Marketing Manager Judy DiCenzo, Senior Manager, Corporate Communications Angelo Petrocelli, Principal Projects Mgr. Kim Fraser, Public Relations Representative John Pettinicchio, Assistant Field Representative Sarah Manty, Training Coordinator, Learning Services Charlie Picard, Principal Projects Mgr. Jane Tougas, Supervisor of Personnel Records Mike Vieira, Casino Inspection & Standard Compliance Mgr.

Connecticut Lottery Corporation Suzanne Colley, Warehouse & Distribution Center Supervisor Joel Kalinowski, Director of Social Media Andrew Walter, Legal Counsel

Kentucky Lottery Corporation Chip Polston, Vice President of Communications, Gov’t & PR

Massachusetts Lottery Jean Caron, Executive Assistant to the Executive Director Brian Donelan, EAP Coordinator Jay Harney, Associate General Counsel Brian Kelly, Senior Sales Representative Stacy Leverone, PC Software Specialist

New Hampshire Lottery Commission Erica Brisson, Marketing Coordinator/Social Media Operations Julie O’Brien, Sales Representative 34 INSIGHTS November/December 2013

A Special thanks to all the NASPL Volunteers who made NASPL 2013 in Providence, Rhode Island one of the best shows yet!

All NASPL 2013 photos by Domagalski Photography – www.domagalskiphotography.com INSIGHTS November/December 2013 35 36 INSIGHTS November/December 2013

NASPL ‘13 Directors Dinner - The Hope Club INSIGHTS November/December 2013 37

Founded in 1875, the Hope Club is one of America’s first purposely built, private social clubs. The Club is prominently located on historic College Hill on the East Side of Providence, Rhode Island.

For more than 130 years, the Hope Club has provided a distinguished, welcoming haven for members, their families and guests. The Hope Club serves as an oasis for members during the day and a home away from home in the evening with an ambiance of quiet dignity.

With its age-old charm, the Hope Club combines New England warmth with gracious hospitality in a fashionably restored, understated setting. Whether members and guests seek to relax and unwind or are in search of the ultimate venue for one of life’s special occasions or an important business meeting, the Hope Club stands alone. 38 INSIGHTS November/December 2013

NASPL 2013 Addresses Issues of the Day By Patricia McQueen

The value of any annual industry gathering lies in information sharing and networking. By those measures, NASPL ‘13 fulfilled expectations by tackling the most important topics in the lottery industry today. Presentations on several issues spurred lively conversations throughout the event, including Internet and mobile, retail, management structures and the future of multi-jurisdictional games.

All NASPL 2013 photos by Domagalski Photography – www.domagalskiphotography.com INSIGHTS November/December 2013 39

tail will suffer at the expense of direct Bogus – a brand Internet and Mobile sales through the Internet, but that app and two has not been the case in British Co- game-specific One session provided case studies lumbia. Over the years, Adams noted, apps (for Bingo on how four North American lotter- “the Lottery retail space continues to and Cashword) ies are taking advantage of what In- grow while online sales grow,” and he that offer things like ternet and mobile channels have to added that the experience has been play-for-fun and second offer. The British Columbia Lottery similar with land-based casinos and chance games. The Lottery also Corp. and the Georgia Lottery have traditional sports betting. has two mobile websites. “Mobile been actively selling lottery tickets is the fastest-adopted product in via the Net, the Delaware Lottery was In fact, said Adams, “Players are much US history,” said Bogus, noting that about to launch casino games, and more valuable as multi-channel play- one-third of the Michigan Lottery’s the Michigan Lottery has developed ers,” meaning that the more ways website traffic comes from mobile full-featured mobile apps that offer they can play, they more likely they devices, and that 51 percent of its enhancements for players even with- are to purchase the products, wheth- Keno to Go games are watched via out being able to sell tickets through er at retail, through online channels, the Lottery’s mobile apps. that channel. or now through the new PlayNow mobile app. “We have created a mo- The main challenges in using apps BCLC’s Cameron Adams, Director for bile optimized experience to make come from the reliance upon Goo- Product and Business Development, mobile sales easier for players.” The gle (Android) and Apple to define eGaming, provided a brief overview key with successful online platforms, product development schedules, and of the lottery’s interactive strate- especially mobile, is to “make it easy, the vast number of different kinds of gies, including its latest option, the not flashy,” because many players of- devices available in the market. But PlayNow mobile app. PlayNow is the ten wait until the last minute to play that shouldn’t stop lotteries from umbrella brand for all of BCLC’s in- their numbers. embracing mobile apps. “You need teractive games, with some 250,000 to think like a media company,” said registered players and a smaller sub- The Michigan Lottery has spent a lot Bogus. “Recognize the competition in set of active players. of time and effort developing its own mobile [such as other companies of- mobile strategy, one that works de- fering lottery result apps] and invest Launched in 2004, PlayNow current- spite not being able to sell through now or pay later [when you lose cus- ly offers lottery, poker, casino, bingo the channel as does BCLC. There are tomers to those other apps].” and sports betting games online. three apps at the present time, said There is always a fear that sales at re- Interactive Category Manager Dan The Georgia Lottery also recognizes 40 INSIGHTS November/December 2013

the importance of mobile, but officials ber, play-for-fun games and electronic in- of working with the retail industry as in- there have a long-term plan that has stant games next Spring, followed by the teractive efforts move forward. Global first taken them from offering a limited development of a mobile-focused plat- experience shows that online sales are number of lottery games online through form and a loyalty club by late Spring. By always a small portion of a lottery’s total a Players Club beginning November 25, next fall, the mobile channel will be more sales, and in almost all cases, retail sales 2012, to the June 2013 launch of an iHOPE fully developed with the added ability to grow even as online sales expand. “The prepaid debit card for account-based play purchase tickets with mobile devices. Internet option actually complements a at retail or online. retailer’s business,” said Cameron. Dim- Another ambitious online program was ling emphasized the importance of get- The iHOPE cards are purchased at retail, summarized by Vernon Kirk, Director of ting in front of retailers at the beginning and can be funded with cash, through the Delaware Lottery. On October 31, the of the process, so they understand what prize redemption and with bank accounts Lottery was scheduled to launch interac- is going on. And in Delaware, part of the linked to a Players Club account, explained tive casino games in partnership with the legislation authorizing interactive gaming Jack Dimling, the Lottery’s Vice President state’s three racetracks. To develop the addressed retailer concerns – retailers will of Sales. In addition to purchasing Power- first regulated online casino games in the sell funding sources such as debit cards, ball, Mega Millions and Fantasy 5 games U.S., Delaware wanted “best of breed” for example. online, the cards can be used to buy any vendors to help them, said Kirk. After an lottery games at retail locations. Branded RFP process earlier this year, the Lottery with the Discover logo, they can also be chose to award a management contract Lottery from a Retail used to make non-lottery purchases any- to Scientific Games International and 888 where Discover is accepted. Holdings. Chain Perspective

The online experience in Georgia thus Eventually, Delaware will offer its tradi- Retailers were also the focus of a panel far has generated more than 70,000 new tional lottery games online, and is open to discussion featuring representatives from Players Club members and more than forming agreements with other states to four major chain stores that offer lottery 20,000 iHOPE cards. Sales have averaged allow for multi-state participation – espe- products. Moderated by GTECH’s Vice about 0.4 percent of total game sales. But cially in games like poker where liquidity is President of Retail Business Development the best is yet to come, said Dimling. an important component of success. Sue Strouse, the speakers included Sim- one Blaakman, Continuous Improvement The Lottery will launch iKeno in - Decem All speakers addressed the importance Support, Wegmans; Lynda Lee Martone, INSIGHTS November/December 2013 41

Senior Regional Manager, Cumberland Blaakman. That means getting the store’s vidualize the monitors to each location, Farms; John Paris, Manager of Treasury commission revenues by game and by ter- announce winners from that store, etc.” Operations, CVS; and Mario Vendittelli, minal. “We need to understand the basic Vendittelli added that retailers should be Operations Manager, Colbea Enterprises, income potential of each machine.” notified right away if they sold a big win- which has a chain of Shell-branded gas ning ticket. “Sometimes the media knows stations and convenience stores in Rhode Be flexible. before WE do.” The companies are also Island. “Directors need to be flexible and willing open to using mobile strategies to help to think about things differently,” said Par- drive business into retail stores. CVS uses a variety of models to sell is. Blaakman agreed. “We want a success- lottery, from over-the-counter sales ful partnership with lottery and we want None of these businesses are enthusiastic to self-service kiosks. The two conve- lotteries to listen to us when we have about current non-cash payment meth- nience-store chains utilize counter sales, ideas.” ods. “Lottery is a low margin product for but noted that employee theft is often an us,” said Martone. “Fees with debit cards issue with instant tickets in particular. We- Standardization. and such would erode into that, and we gmans sells lottery at its customer service don’t want to spend more money on “It’s difficult when there is no standardiza- counters, but moved instant tickets to lottery.” However, everyone agreed that tion in policies and reporting,” said Ven- vending machines. “We only sell instant mobile payments systems do hold some dittelli. tickets with ITVMs now,” said Blaakman. potential as long as fees are manageable. “It has made accountability much better and eliminated theft, and our instant sales Provide web-based training. went up when we went with only ITVMs.” “Web-based training would really help us Management structures train our employees,” said Martone. “It’s frustrating for our customers if our- em When asked how lotteries could improve Another hot topic in the lottery industry ployees don’t know how to use lottery.” their experiences, there were several sug- in recent years is private management, or gestions. outsourcing. “Outsourcing sales and mar- Do more marketing keting is a way to overcome those things More information. using digital displays. that often inhibit growth in a traditional “We want relevant, action-driven data on “Customer monitors have great marketing lottery organization,” said Carole Heding- what lottery means to our stores,” said potential,” said Blaakman. “You can indi- er, Executive Director of the New Jersey 42 INSIGHTS November/December 2013

Lottery. She participated in a panel discussing new management structures, moderated by Texas Lottery Executive Director Gary Grief.

Although New Jersey was already a well-run lottery, it was felt there was room for improvement. New Jersey signed a contract this fall with Northstar New Jersey for sales and marketing services, and the whole process, including the transition of employees, went more smoothly than expected, said Hedinger. A sales rally marked the jumping off point and got everyone energized. “We wanted to avoid an ‘us versus them’ environment,” she added. “We wanted a partnership.” sized that “both parties need clear goal Of course, successful games create their alignment. Sometimes a contract doesn’t own challenges. “It’s always the curse of That was also the goal in Indiana, which cover everything, and both parties need to a good year – what to do NEXT year,” said required the private company to share the do what’s best for the lottery.” Chuck Strutt, Executive Director of the Hoosier Lottery’s facilities and to hire the Multi-State Lottery Association. To that Lottery’s employees with the same- lev end, MUSL is always looking for new games el of benefits for a minimum of one year. and new opportunities to balance the me- “Employee transition came much earlier The Evolution of ga-jackpot games. than required,” said former Hoosier Lot- Multi-Jurisdictional Games tery Executive Director Karl Browning. “And There could be several possibilities in the GTECH brought enthusiasm to the busi- near future, he said, including a multi- ness. Most people are happy with it.” For so many American lotteries, the perfor- state version of All or Nothing, progressive mance of the two national mega-jackpot keno, Internet poker (as a game of chance), Oliver Wyman Consultant Jodi Winnett said games can make or break their financial games for the mobile platform and various that in deciding whether to go down this performance. And these games have had themed games. road, there should be a full assessment of two high-profile years – with a world re- a lottery’s performance and a determina- cord Mega Millions jackpot and the move But beyond new game ideas, now that tion of what it is capable of across all of its to $2 Powerball that generated several Powerball and Mega Millions are true na- operations. “The end goal is integrity and huge jackpots to help drive sales. To help tional games there are unprecedented op- value.” keep the momentum going, Mega Millions portunities to develop national promotions launched a new matrix in October with a on these games, said Cynthia O’Connell, Grief, who has led the Texas Lottery with new prize structure in an effort to rejuve- Secretary of the Florida Lottery and Chair one outsourcing model for years, empha- nate the game and build the attention-get- of MUSL Marketing and Promotions Com- ting jackpots that drive sales. mittee.

The new game format was chosen after ex- “Brand association is important in shaping tensive consumer testing, said Paula Otto, the portfolio,” she said. Knowing how suc- Executive Director of the Virginia Lottery cessful the Florida Lottery has been with and Lead Director for Mega Millions. There in-state Powerball promotions, like the Mi- are three major objectives, all of which lead ami Heat Powerball Playoff Experience, she to greater spend, she said: knows that national promotions will reso- nate across the country. Several states are • Bigger jackpots with a 1 in 75 plus 1 in participating in the Football Hall of Fame 15 matrix, a 30-year annuity and more Ultimate Tailgate Party Powerball promo- money going to the jackpot; tion this fall. “Luxury brands can be asso- • Greater awareness with $1 million ciated with national games,” said O’Con- second-tier prizes and the potential nell. “We need real collaboration between for $5 million prizes with the Megapli- states.” er; and • Greater involvement with more wins for players at lower levels.

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NASPL Keynotes

Succeeding in business was also a theme of the second keynote speaker, Daniel H. Pink. The author of several books about the changing world of work, his talk centered around how most workers today are involved in sales one way or another. Although only one in nine people in the U.S. workforce are in sales, most people are involved in sales in some way. “People make exchanges in their jobs, persuading people to give up something they value for something you can offer.” He calls this non-sales selling. “Like it or not, we are ALL in sales now.”

here were two distinguished keynote speakers at NASPL Historically, selling had negative connotations as buyers have ‘13. The first, David M. Rubenstein, is a Co-Founder and always been at an information disadvantage. But in the past Co-CEO of The Carlyle Group, one of the world’s largest ten years, the dynamic has changed. There is increasingly private equity firms. Of humble beginnings, Rubenstein is information parity as buyers have gained more knowledge. Tpassionate about government and history, and has used his wealth Buyer beware has become seller beware. to support numerous philanthropic causes and charities. To succeed in this new era of selling, Pink defines the “new He is a fan of public/private partnerships, and pointed out that lot- ABCs of selling:” teries are also a type of philanthropy – helping other people with - Attunement – perspective-taking; seeing something your time, energy and ideas, and giving more money to govern- from another point of view. ments and helping people as a result. - Buoyancy – learning how to stay afloat in an ocean of re- jection. When asked by Gary Grief what he looks for in finding CEOs for the - Clarity – since access to information no longer gives you companies his company purchases, Rubenstein replied: an advantage, clarify it with problem solving and problem - Someone who is reasonable and intelligent, but not a genius – finding. you can’t manage a genius. - Someone who is a hard worker; who sets examples; who likes And he offered several suggestions on how to become a bet- to be a salesperson; who likes to communicate both orally and ter worker: in writing; and who likes to make money but not necessarily spend money. 1) People with high power and status are typically less likely - Someone with a history of doing well in life. to be perspective-takers, so increase your effectiveness by briefly reducing your feelings of power.

2) Extroverts might be more likely to go into sales, but it’s wrong to say they are the best sales people as they are often seen as pushy. Ambiverts – people in the middle between extroverts and introverts – are the best performers because they know how to reach people.

3) Questions are more effective than statements – questions elicit an active response as you invite people to come up with their own conclusions.

4) Context explains peoples’ behavior a lot more than we realize, and personality explains a lot less than we realize. Give people an off-ramp, an easy way to react.

5) How and why – we often say too much about how you do things and not enough about why you do things. You will be much more persuasive if you focus more about the why. 44 November/December 2013

Thoughts from the Vendor Community

The industry’s leading vendors are always given an opportunity to share their ideas in an open forum at NASPL’s annual conference. The 2013 edition featured Tom Little, President and CEO of Intralot USA; Jaymin Patel, President and CEO of GTECH Americas; Doug Pollard, Co-CEO of Pollard Banknote; and Lorne Weil, Chairman and CEO of Scientific Games. The discussion was facilitated by Rebecca Paul Hargrove, President and CEO of the Tennessee Education Lottery. Here are some of the highlights of the session.

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From Right to Left 46 INSIGHTS November/December 2013

On the industry’s growth potential: use mobile creatively, you can drive retail traffic as well. We just have to be ready to take some risks. Dif- Weil: I think there’s a few things that we need to keep ferent lotteries have different regulatory and political trying to do. For example, we’ve lost considerable settings and different readiness to do things, but you market share in the 24-36 age group. I think funda- have to do what you can. Because that’s how you are mentally we need to be thinking about what is fun going to learn, it’s how you are going to start engag- for that group, and how technology is going to cre- ing different demographics. And it will serve you well ate games and forms of entertainment that are going when the future eventually comes. to draw them in to play the lotteries. Based on my anecdotal observations, that market share we’ve lost On outsourcing: from that younger demographic was not lost to other forms of gaming, it just went to some other form of consumption. Pollard: I don’t think it is the sole answer. We understand the push towards the private manager model Patel: I certainly agree with Lorne that it is difficult – agencies are starved for resources. It’s very hard to attract younger players into our industry and that to get the resources to invest in your business, so it we are probably losing market share at the younger makes sense to engage the private sector. However, I levels. But the view that I have has remained consis- do think we need to see a different model to engage tent for a long time – the potential for organic sales that private sector, because right now we don’t have growth in our industry is huge. The scope to double a very competitive model. our business is there. It’s up to us to find the ways to drive that growth. We have to work hard at expanding Little: I do not think privatization is the answer. I think retailers; it’s very hard work but it has to get done. it’s the whole relationship between the suppliers and And I think that the scope for launching new games the lottery that needs to change. They are not mar- and innovation is also very ripe. There are a large ried to the same goals. Lotteries just care about rev- number of new games that have produced value, and enue, not what it costs me as a supplier. It would be the multi-jurisdictional games have produced excel- better for us to form a real team, a real joint venture, lent results as a category. So if you look at the fun- and empower the lottery to do what a private compa- damentals, the ability for consumers to spend more ny can do, incentivize employees, and then we both money in our category is there. And it’s our job to go down the stream together. find ways of bringing that revenue in with more draw- based games and instant ticket games. Patel: I don’t believe it is the answer to growth for every jurisdiction, but in every situation that we have Little: I agree that the key to growth is increasing the found, the management and the state employees are agent network. With the technology that we have, we excellent managers. They just do not have the capital are on the edge right now of being able to explode or innovation investment that is required to grow this into new products and games on the Internet, going business. In Illinois, Indiana and New Jersey, the gov- mobile, and new types of draw games. There’s a lot ernments have created a discussion that coalesces that we can do but lotteries are kind of reluctant – the thought process on growing and bringing in pri- everybody wants to be the third one in line for some- vate sector capital and the new games and innovation thing new. But with the technology where it is now, that drive the growth. So I think there has to be a way this is the first time we have the opportunity for all to have that discussion in a more concrete way with sorts of games, interactive games, self-service ma- the regulators and with the state government to drive chines – and a lot of things that we haven’t tapped growth. yet – which will really help sales. So the potential is there. There’s huge potential. Weil: I agree with Jaymin, but when we talk about growth, we sort of make the assumption that all Pollard: We see the big growth opportunity in ex- states are in exactly the same position. I continue to panding our player base, and that’s the biggest be fascinated by the extraordinary variation in the challenge we face. There is still some growth in our performance from one state to the next. Look at the core players, but if we can’t expand our player base, instant ticket business for example – the half-dozen particularly the younger demographics, we’ve got top-performing lotteries in the country have a weekly an issue coming up. So if you think longer term, and per capita instant sales that is twice what the national even shorter term, I think the opportunity we have average is. So even without thinking about ‘how to to embrace that we’ve all touched on is the mobile change the business model’ or ‘how do we introduce opportunity. And mobile will get at a lot of different technology, ’ just start by trying to understand how things if it’s used right. It’s a great opportunity. If you we can bring the average up to the level of perfor- INSIGHTS November/December 2013 47

mance of the best lotteries. That would in itself produce a for that has to come from the lotteries, and I think the sup- huge amount of growth for the industry overall. In a certain pliers will follow. sense, that’s kind of the point of private management – it’s basically saying how can we bring best practices to a Little: That’s true. We compete, and we begrudgingly come lottery that right now for some reason isn’t doing the best together because it happens to be good for both of us. But practices. If the lottery is already performing at the very top you have to be careful of us collaborating too much, be- of the heap, then it’s not clear that there’s any reason for cause we are fierce competitors and you don’t want to stop changing the model. the innovation that we do, and you want to keep the prices down. So if we start really collaborating, then I think it will Patel: New Jersey is a top-performing North American lot- hurt innovation – we’ll become lazier and prices will go up. tery, so growth is going to be hard work. But I’d like to add So the leadership has to come from [the lotteries]. that we should not be shy as an industry to push our state governments to allow lotteries to grow. If you look at Illi- Patel: I think it’s essential to collaborate. I go back to fo- nois, Indiana and New Jersey, there are plenty of gaming cusing on where the growth has come from. The tremen- machines. In New Jersey the governor has approved inter- dous collaboration in multistate games the last two years active gaming. It’s very hard for me to understand how on has contributed to this huge run of growth. And we mustn’t the one hand, states can expand slot machines or imple- forget the instant ticket business. I believe that we have ment interactive games, and yet we have a difficult time collaborated in providing research and we have tried to approving new lottery games or approving keno. We return support the multi-jurisdictional game environment with 28 percent of gross ticket sales back to the state – the slot new ideas. So yes we will compete very fiercely. But I think machine business returns 3 percent. So we have to do a that helping our customers with research, new ideas and much better job of communicating the social benefits and national games is essential. Each lottery’s brand is very im- the access to fun gaming products for our industry versus portant, but I think it’s even more powerful to combine at other forms of gaming. the national level, to invest joint marketing money to drive growth. I want to see growth. If growth means that we have On collaboration among vendors: to collaborate more, I’m willing to do it.

Weil: I think some of us have been collaborating, and the Pollard: One caution I would make to the leadership in biggest problem that we have in this industry is enlarging this industry. While there are lots of opportunities for the pie. If we are focused on “I want my slice to be bigger growth through collaboration, some of that collaboration at the expense of your slice,” then the likelihood is that we can erode competition, and I think you ought to be con- are not focusing on the real issue, which is making the pie cerned about that. But there are areas where it can still be bigger. There are several examples of phenomenal collab- very beneficial without undermining the competitiveness. orate success between vendors. I think we’re beginning to There is a tremendous opportunity for a national premium figure out that even though we are obviously very fierce game. Look at what the provinces in Canada do through competitors with one another a lot of the time, with the the ILC – they come together with $10 and $20 games and assistance and encouragement of the lotteries it is clearly they’ve had huge growth the last couple of years. So there beneficial to have the companies who are otherwise com- are opportunities to collaborate, you just have to apply petitors collaborate to create something where the whole them appropriately. is greater than the sum of the parts. I think the leadership 48 INSIGHTS November/December 2013

NASPL 2013 Trade Show Recap Interactivity was all the buzz, but interest in innovative retail solutions was also front and center.

By Patricia McQueen

he trade show floor at the NASPL annual conference is a great Canada, used the NASPL event to introduce themselves to the U.S. way to learn about all the products and services that keep the market for the second year in a row. “The awareness and hunger for Tlottery industry humming along. “It’s such an efficient way to information is there,” said Yeemay Huang. get all the stakeholders all in one place,” said Daniel Cage, Chief Ex- ecutive Officer of Linq3. It’s also great a great way for companies to One hurdle in the development of online sales is the concern by engage in conversations about potential collaboration, especially as retailers that they will lose business as a result. While this fear is the industry changes and no one company can meet all the complex unfounded based on years of experience around the world, the con- needs of a lottery in today’s environment. cern remains, and one potential solution is the use of prepaid cards purchased at retail. InComm, an industry leader in prepaid card and With a few American lotteries already selling tickets online, it’s not transaction technologies across industries, showcased its offerings surprising that the interest in interactive solutions is increasing dra- on the show floor, as did newcomer Home Play Express. The latter matically. The major vendors all have their own options, of course, company offers reloadable cards for purchase at any lottery retailer, but there are also numerous companies dedicated to the interactive which can be used to register and play online. “It doesn’t take any- world. Three participated in a big way at NASPL ‘13 – Jumbo Interac- thing away from the retailer,” said Managing Member Susan Yoder. tive, NeoGames and OpenBet. “And we’ve received a lot of interest as a result.”

Jumbo’s American President Brian Roberts likes the trade show ex- Alchemy3 is also aware of retailer concerns as lotteries move down perience as a way to communicate with lottery staff on a one-on- the online path. It is developing a streaming terminal that would one basis, which helps educate them at their own pace. Moti Malul, work in conjunction with an existing retail location, sending lottery Vice President of Sales and Business Development for NeoGames, tickets to a mobile device. “We are trying to open up new channels thought there was a lot of participation and interest by lotteries, es- of distribution through restaurants, airports and other places where pecially in the area of mobile solutions. “There is more traction this people are idle and have their mobile phone with them,” said Chief year and we’ve had many more conversations than in the past.” Executive Officer Paul Guziel. “When people have downtime, they start playing mobile games. If they are in an area where there is a That was a sentiment echoed by just about everyone at the event. streaming terminal, they can buy lottery tickets over the air, play the OpenBet, strong in Europe for 17 years and already a presence in games and actually win without using paper.” He added that this is

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a great way to bring in reluctant lottery retailers who never wanted the hassle of managing paper lottery tickets, but who would be interested in a streaming terminal.

Alchemy3 has in fact put a lot of emphasis on various mobile developments, developing a line of games and products under the MobileCAT brand. These include a lottery utility app for scanning tickets, locating retailers, showing winning numbers and providing all sorts of game and other information. “It was designed to be a container that would ulti- mately deliver just-for-fun game products,” said Guziel. “Then the evolution would be to turn these just-for-fun games into actual interactive lottery ticket games. That is really where we are trying to take this whole concept,” as a way to drive interest from emerging market players.

Questions about expanded retail distribution dominated discussion at the Linq3 booth, with everyone wanting to learn about Minnesota’s year- long experience with the company’s POS technology for lottery sales at gas pumps, ATMs and other unmanned locations. CEO Cage was happy to report that the system has worked fine from a technology and security perspective. He added that a study by the Minnesota Lottery showed that in-store sales of Powerball and Mega Millions were up at locations where gas pump sales were offered. “So you are driving in-store sales higher just by offering lottery at the pump,” said Cage. “That is significant.”

Players have also been confident enough that 96 percent of them have provided their cell phone number when using the system – giving lotteries a great interactive way to communicate with players through texting.

The Missouri Lottery will be next to use the Linq3 system, with others on the way. “A lot of the interest comes from the basics, which is an efficient new way that lottery can be distributed,” said Cage. And expanding distribution, reaching new customers, is at the top of every lottery’s to-do list. As more jurisdictions pick up the system, the potential is even greater. “A lot of our conversations are with the big chains that service multiple states, and I think that’s when it starts getting exciting.”

Sometimes players just need more cues from their environment as they shop in lottery retail outlets. Included among the NASPL exhibitors were several companies specializing in retail products and services, including signage, point-of-purchase displays, play centers and ticket dispensers. They included AdMart, Carmanah Signs, DNI Retail Design, Go Plastics, Pro-Lite and Take-a-Ticket. Most are industry veterans and have been long-time NASPL exhibitors. Yet with so many lotteries doing retail make- overs and otherwise upgrading the retail experience for the benefit of both lottery agents and their customers, these companies continue to offer a never-ending array of new products with these goals in mind.

Products as diverse as Go Plastics’ combination trash bin with advertising and Take-a-Ticket’s latest 48-ticket rotating dispenser help provide solutions for retailers with little available space, making lottery easier to sell. Wireless solutions allow signage companies to offer jackpot and other signs that are continuously updated with little impact on the retailers.

DNI Retail Design was exhibiting for only the second time at a NASPL conference – its first was in 2011. The company is fairly new to the lottery business, but has considerable history in retail merchandising. Steve 50 INSIGHTS November/December 2013

Shadduck sees great business opportunities for his company in the lottery industry, and found the NASPL events to be a much better way to introduce products than through common methods such as email blasts.

Companies offering control systems and consulting services, especially technology- and security-related consulting, are in high demand as lotteries move into new distribution channels and come under more scru- tiny than ever. BerryDunn, for example, is a fast-growing CPA firm that has worked with lotteries for almost 20 years in the general area of IT assurance, but Providence was only its second exhibit booth at a NASPL conference. “We felt we should be here to support the clients we have since we have so much experience in the industry,” said Christopher Ellingwood, a manager with the firm’s Management and IT Consulting Group.

Providence-based Spectra Systems, specializing in secure transaction systems for a number of industries, was a new exhibitor this year, expanding its presence in the lottery industry after acquiring Lapis Soft- ware Associates in 2012.

Celebrating its tenth anniversary this year was Szrek2Solutions, another provider of software services including verification and audit systems. Managing Director Irena Szrek uses NASPL events as a good way to talk with clients and potential clients. For the Providence show, the company developed a game to demonstrate its Trusted Draw secure digital drawing system.

Other regular exhibitors in this area include Delehanty Consulting LLC, Elsym Consulting, Inc., Hudson Alley Software (previously exhibiting as OrderPad) and Ipsos Reid. Two global gaming test labs also participated, BMM Testlabs and Gaming Laboratories International.

Longtime NASPL exhibitor Smartplay, which produces secure ball and digital drawing machines, introduced a great new product, the Origin- Portal, to take advantage of social media. The system instantly distrib- utes drawing results in either still or animated form to social media sites, television and print media with a click of a button.

And Diamond Game was back with its vending solution for lotteries seeking retailer growth. With an entertaining video display, the LT-3 ITVM is a great way to help lotteries expand into less traditional locations such as bars and taverns, bingo halls and social clubs.

The NASPL show also provides the opportunity for companies to learn about products and services offered by other suppliers, with whom they might develop relationships for everyone’s benefit. AllOver Media, for example, which specializes in out-of-home advertising services, was excited about Linq3’s gas pump solutions, perhaps finding synergies with respect to signage and other needs, said AllOver’s National Account Manager Alanna Owen.

And of course, lottery representatives are always looking for innovative new games. In addition to those offered by the major vendors, Geo- nomics turned heads with a game on its location-based technology. The company offers GeoLotto (formerly GeoSweep) and Treasure Hunt, fully interactive online games, in the U.K. For other markets, it has developed a second chance version of Treasure Hunt, offering lotteries an unusual way to add interest and interactivity to traditional scratch games. Players

All NASPL 2013 photos by Domagalski Photography – www.domagalskiphotography.com INSIGHTS November/December 2013 51

with non-winning tickets enter a code online or on a mobile device said Bettcher. (the game is optimized for mobile) to “dig” on a map of their jurisdiction to find treasure. It’s a simple, fun way to prolong the life of Enhancing more traditional instant tickets is also part of Scientific a scratch ticket, noted Sales Director Henry Oakes. Vermont is set to Games’ strategy, with the goal of getting people attracted to tickets launch the second-chance game next Spring. that stand out due to new printing techniques with new inks, colors and presentations. A new luxury line of LuxColor and LuxTouch is all New Vision Gaming is another boutique provider, this one special- about “making tickets look and feel better than they have before,” izing in keno-based poker games. President John Feola hadn’t been said Vice President of Sales Dennis Miller. “This gets players to try to a NASPL conference in years, but was back with several games, the games, although winning experiences bring them back.” including Lotto Hold’em, Hold’em Millions and Headstart Hold’em Keno. One of the company’s games, Jackpot Poker, is being used by MDI Entertainment, a Scientific Games company, always makes a the Massachusetts Lottery as a second monitor game. Feola looks splash at NASPL events with its licensed game opportunities, and forward to building on the relationships he made during the week. this year was no exception. Several new games were showcased, including those with mobile options and social games, such as the new Slingo Lottery Challenge and Monopoly Jackpot, a scratch game The Big Four with an interactive second-chance option featuring an industry-first Of course, the largest industry suppliers usually have the busiest multistate linked progressive jackpot. booths, with myriad product lines and everyone wanting to touch and feel the latest and greatest. This year was no exception. Exhibiting for the first time as part of Scientific Games was WMS, a supplier of slot machines and video lottery terminals. New this year Intralot put products front and center in its booth setup, and it was a is the Gamefield xD platform featuring two 32” video displays and big success, according to Amy Byers, Marketing Manager for Intralot offering more entertainment value for licensed leased products. USA – there was genuine interest in the company’s latest technologies. This year, one of the company’s featured products was the And of course, SGI’s systems unit had a variety of new solutions in- new DreamTouch self-service terminal, offering a 42” touch screen cluding smaller-footprint retail terminals, cell-based handheld units, interactive display where players can purchase instant scratch tick- portable terminals for in-lane use and new self-service interactive ets, draw games and even interactive touch games. terminals. “It’s all about convenience, trying to make the retailer’s life easier and meeting the needs of the industry,” said Robbie Asen- There was also a lot of interest in Intralot’s TAPP IT! line of interac- dorf, Retail Product Marketing Manager, tive games. The high energy, high experience games for social environments are the next generation of lottery games, said Byers. The Addressing retailer concerns and the perceived difficulty of manag- company also showed off new monitor games and other vending ing lottery products is also a big focus for GTECH Corp., noted Vice solutions. The common denominator was video. “Everyone was at- President of Product Marketing Paul Riley. “Everyone is looking for tracted to the video element in all these products. It was all about the latest retail solutions,” he said. A big issue is instant ticket man- the entertainment factor.” agement, and GTECH’s SmartCount provides retailers with an easy way to accurately monitor instant ticket sales and inventory, han- Entertainment also figured prominently for Pollard Banknote; for dling all the reconciliations and helping reduce theft. example, the second chance opportunities provided by new games such as Raise the Stakes, part of the company’s Social Instants inter- The company was testing a number of other concepts during the active program. The mobile-enhanced second-chance format offers NASPL show, including one of the latest technologies, proximity mar- progressive jackpots. At the NASPL booth, participants were able to keting. Using Bluetooth, lotteries would be able to send offers to a put themselves into the players’ shoes, experiencing the app, antic- smartphone or other mobile device when a customer enters a retail ipating the draws and the excitement of winning, explained Nancy store. Bettcher, Vice President of Product Innovation and Development. Like everyone else, Riley noted that the interactive arena drew the “We were really pleased to see lotteries’ interest in innovation in most interest this year. He pointed out that the Illinois Lottery added general and the interactive and mobile products that we’ve been mobile wagering in September to its existing online sales platform. working on,” she said. “They wanted to learn more about our apps, And the prepaid and debit cards now being introduced, such as the like our very successful Cashword, Raise the Stakes, etc., and how Georgia Lottery’s iHOPE card, not only involve the retailer through they fit into their instant ticket strategy to support bricks and mortar purchase and reloads, but also provide a great deal of useful infor- sales.” mation for lotteries about their players.

Other instant ticket strategies include various print innovations such Clearly, NASPL ‘13 proved that while lotteries are moving into the as PlayBooks (the Iowa Lottery’s PlayBook was named NASPL’s Best interactive world, they are still very much focused on the retailers Instant Ticket for 2013), PlayAround Fold-Over tickets and the MaxFX that have served them well the past 50 years. There is no shortage and GlossFX print options. “It’s exciting to be able to provide new of ideas and innovations to address all areas of the marketplace, and sales-driving ideas that are being well received in both the new in- the industry will move forward because of it. teractive space as well as in the traditional sphere of our business,” 52 INSIGHTS November/December 2013

The NASPL 2013 Awards INSIGHTS November/December 2013 53 54 INSIGHTS November/December 2013

The NASPL Awards

Congratulations to the California Lottery for winning the prestigious Best of the Batch Award for their Powerball - Snowfall ad. They also have a new record for most awards received during a NASPL Annual Conference! INSIGHTS November/December 2013 55

The NASPL Awards Winners

Fortune 55 Scratchers - TV Advertising - Instant Games California Lottery David&Goliath More Luck for Your Buck TV Advertising - Daily Draw Games Arizona Lottery E.B. Lane Hall of Winners - Movies TV Advertising - Lotto/Spiel Games California Lottery David&Goliath Powerball - Snowfall TV Advertising - Corporate/Beneficiary Illinois Lottery Downtown Partners Chicago Shopping - Anything’s Possible Powerball - Launch, Car and Café TV Advertising - Coordinated Campaign California Lottery David&Goliath Jackpot, Snow Angel Radio Advertising - Instant Games Missouri Lottery Barkley Chuck- Harley-Davidson Radio Advertising - Daily Draw Games Texas Lottery Commission LatinWorks All or Nothing - Urgent News Radio Advertising - Lotto/Spiel Games California Lottery David&Goliath Powerball - Day Like Any Other Radio Advertising - California Lottery David&Goliath Powerball Coordinated Campaign Print Advertising - California Lottery Alcone Marketing Group POWERBALL® POS Kit Retailer Signage/Merchandising Print Advertising - Outdoor California Lottery Alcone Marketing Group POWERBALL® Pole Sign Print Advertising - Color Delaware Lottery Star Group HOT LOTTO Smoke Signals Print Advertising - Coordinated Campaign California Lottery David&Goliath Powerball Special Category - Minnesota State Lottery Olson Raffle - Golden Ticket Original Music for TV or Radio Special Category - Use of Humor (Radio) Washington’s Lottery Cole & Weber United Chestpaint Hit it Big with 5 Card Cash - Special Category - Use of Humor (TV) Maryland Lottery gkv Baltimore Baseball Weekend Special Category - Use of Cinematography California Lottery David&Goliath Powerball - Snowfall Special Category - DC Lottery MDB Communications Winners 2013 - Wish TV or Radio Fitting No Other Category Special Category - Little Bit of Luck - New York Lottery DDB NY TV or Radio Fitting No Other Category Morning Routine Special Category - Tennessee Education Lottery Tennessee Education Lottery The Buntin Group Corporate/Beneficiary Video Corporation - Diversity Video Special Category - Idaho Cashword - Idaho Lottery Drake Cooper TV Campaign Under $25,000 Wrong Word Guy Special Category - Up for Grabs - Tennessee Education Lottery The Buntin Group TV Campaign Under $10,000 Warehouse Dash Corporate Communications - Cactus Marketing Communica- Colorado Lottery A Field Guide to Play Annual Report tions Corporate Communications - Year of the Flamingo Florida Lottery SJ&P Employee Newsletter Employee Newsletter Corporate Communications - Virginia Lottery Virginia Lottery April 2013 Playbook Retailer Newsletter Corporate Communications - Kansas Lottery Kansas Lottery Kansas Lotto News Player/Customer Newsletter Responsible Gambling Loto-Québec lg2 Advertising Agency Control Communications - Print Responsible Gambling Loto-Québec lg2 Advertising Agency Control Communications - Video Responsible Gambling Virginia Lottery Virginia Lottery Game Changer Communications - Radio Best New Media Georgia Lottery Corporation BBDO Digital Yearbook Best New Media Washington’s Lottery Cole & Weber United Group Play App Hickey - Special Events Promotion California Lottery David&Goliath/Remarq Powerball Launch Hickey - Audio/Visual Presentation Georgia Lottery Corporation BBDO Digital Yearbook Hickey - Potpourri Promotion Georgia Lottery Corporation BBDO Atlanta Hawks Halftime Show Best New Instant Game Iowa Lottery Authority Iowa Lottery Authority Game Book Best New Draw Game Texas Lottery Commission LatinWorks All or Nothing BEST of the BATCH California Lottery David&Goliath Powerball - Snowfall 56 INSIGHTS November/December 2013 INSIGHTS November/December 2013 57

It’s that special time of yearf again for the Insights annual Holiday Instant Ticket Catalog. This feature includes a gallery of Holiday tickets from a number of North American lotteries as well as some general information including Game Type, Price Point, Order Quantity, Odds of Winning and Top Prize. Be sure to check back in a couple of months to see a full recap on how these festive holiday tickets did in a full wrap-up. Enjoy and have a wonderful holiday season from NASPL! f 58 INSIGHTS November/December 2013 INSIGHTS November/December 2013 59 60 INSIGHTS November/December 2013 INSIGHTS November/December 2013 61 62 INSIGHTS November/December 2013 INSIGHTS November/December 2013 63 64 INSIGHTS November/December 2013 INSIGHTS November/December 2013 65 66 INSIGHTS November/December 2013 INSIGHTS November/December 2013 67 68 INSIGHTS November/December 2013 INSIGHTS November/December 2013 69 70 INSIGHTS November/December 2013 INSIGHTS November/December 2013 71 72 INSIGHTS November/December 2013 INSIGHTS November/December 2013 73 74 INSIGHTS November/December 2013

f Happy Holidays from NASPL f INSIGHTS November/December 2013 75 NASPL Lotteries Holiday Instants Odds of Lottery Game Name Vendor Game Type Price Point Order # Top Prize Winning Arizona Frosty Fun Scientific Games Match 3 $1.00 2,400,000 1 in 4.28 $500 Stocking Stuffer Scientific Games Find $2.00 1,560,000 1 in 4.13 $10,000 Naughty/Nice Pollard Crossword $2.00 1,920,000 1 in 3.60 $10,000 Crossword Money Tree SGI Key # match $5.00 1,200,000 1 in 3.45 $50,000 Holiday Riches Pollard Key # match $10.00 840,000 1 in 2.99 $100,000 BCLC Holiday Gift Pack Pollard Key # match $20.00 2,250,000 1 in 3.00 $150,000 Holiday Magic Pollard Key # match $10.00 500,000 1 in 3.10 $125,000 Merry Money Multiplier GTECH Match 3 $5.00 600,000 1 in 3.30 $100,000 Reveal Single Santa’s Surprises Pollard $5.00 600,000 1 in 3.25 $100,000 Prize Oh Christmas Tree Pollard Key # match $3.00 800,000 1 in 3.50 $50,000 The 12 Days of Christ- Pollard Match 3 $3.00 800,000 1 in 3.50 $50,000 mas Snowglobe Cash Pollard Match 3 $1.00 2,750,000 1 in 4.30 $10,000 Sleigh Bells Pollard Key # match $2.00 800,000 1 in 4.20 $20,000 Stocking Stuffer Pollard Match 3 $2.00 800,000 1 in 4.20 $20,000 California Sweet Holidays! Scientific Games Match 3 $1.00 18,240,000 1 in 4.67 $500.00 Merry Money Scientific Games Key # match $2.00 14,400,000 1 in 4.33 $20,000.00 Winter Crossword Pollard Banknote Crossword $3.00 18,000,000 1 in 3.34 $20,000.00 Silver 7’s Scientific Games Find $5.00 22,800,000 1 in 3.48 $77,777.00 Colorado The Reindeer Game Scientific Games Scratch $1.00 2,880,000 1 in 4.09 $5,000 Holiday Greeting$ Scientific Games Scratch $2.00 1,440,000 1 in 4.04 $10,000 Holiday Wishe$ Scientific Games Scratch $3.00 720,000 1 in 3.11 $35,000 Holiday Red/Green Scientific Games Scratch $5.00 960,000 1 in 3.74 $100,000 Delaware Frosy Fun Scientific Games Symbol Match $1.00 300,000 1 in 4.91 $250 Holiday $100’s Scientific Games Key # match $2.00 210,000 1 in 5 $500 Florida SEASON’S GOLD Scientific Games Key # match $2.00 9,000,000 1 in 4.36 $25,000 HOLIDAY DELIGHT Scientific Games Key # match $1.00 15,840,000 1 in 4.87 $5,000 HO HO HO LOTTA CASH Scientific Games Key # match $2.00 9,000,000 1 in 4.38 $25,000 $1,000,000 SEASON’S Scientific Games Key # match $10.00 4,080,000 1 in 3.41 $1,000,000 GREETINGS HOLIDAY GIFT Scientific Games Key # match $5.00 5,760,000 1 in 4.05 $250,000 CHOCOLATE COVERED Scientific Games Key # match $2.00 15,120,000 1 in 4.35 $30,000 7’S Georgia 5X The Money Scientific Games Key # match $1.00 14,800,000 1 in 4.43 $10,000 10X The Money Scientific Games Key # match $2.00 15,360,000 1 in 3.84 $50,000 20X The Money Scientific Games Key # match $5.00 6,240,000 1 in 3.85 $500,000 $1, $2, $3 100X The Money Scientific Games Key # match $20.00 3,000,000 1 in 2.98 million Idaho Christmas Countdown Pollard Key # match $20.00 240,000 1 in 2.53 $200,000 Sugar Cookies GTECH Printing Key # match $5.00 480,000 1 in 3.78 $50,000 Holiday Lights Bingo GTECH Printing Bingo $3.00 780,000 1 in 3.34 $30,000 Silver Bells Doubler GTECH Printing Key # match $2.00 480,000 1 in 3.68 $10,000 Merry Mint GTECH Printing Match 3 $1.00 840,000 1 in 4.07 $2,000 Indiana Holiday $50s GTECH Printing Scratch-off $1.00 5,400,000 1 in 4.91 $500 Holiday Winnings GTECH Printing Scratch-off $2.00 4,320,000 1 in 4.68 $20,000 Year End Bonus SGI Scratch-off $5.00 4,320,000 1 in 3.99 $125,000 Million Dollar Holiday GTECH Printing Scratch-off $10.00 2,520,000 1 in 3.96 $1,000,000 Iowa Winter Riches Scientific Games Match 3 $1.00 2,520,000 1 in 4.65 $1,000 Holiday Bingo Pollard Bingo $2.00 2,154,600 1 in 3.57 $25,000 Let It Snow Pollard Crossword $3.00 2,939,300 1 in 3.82 $30,000 Holiday Super Pollard Crossword $5.00 2,034,900 1 in 3.69 $50,000 $50,000 Bonus Gift Scientific Games Key Symbol $5.00 1,320,000 1 in 3.62 $50,000 Snow Globe Tripler Pollard Key Symbol $10.00 957,600 1 in 2.61 $100,000 Ho Ho Ho Lotta Cash Scientific Games Key # match $1.00 2,040,000 1 in 4.19 $1,500 Happy Holidays Scientific Games Key Symbol $2.00 1,200,000 1 in 3.82 $10,000 Tic-Tac Dough Scientific Games Tic-Tac-Toe $3.00 840,000 1 in 3.58 $30,000 76 INSIGHTS November/December 2013

NASPL Lotteries Holiday Instants

Odds of Lottery Game Name Vendor Game Type Price Point Order # Top Prize Winning Kansas Secret Santa Pollard Key Symbol $1.00 1,200,000 1 in 4.83 $3,000 Bah Humbucks Gtech Printing Key # match $1.00 1,200,000 1 in 4.07 $2,500 Holiday Sweater Pollard Key Symbol $2.00 900,000 1 in 3.95 $10,000 So Many Santas Pollard Key # match $5.00 300,000 1 in 3.58 $25,000 Winner Wishes Pollard Key # match $10.00 300,000 1 in 2.97 $75,000 Kentucky SPARKLING CASH Scientific Games SCRATCH-OFF $5.00 296,000 1 in 3.72 $30,000 FROSTY FUN Scientific Games SCRATCH-OFF $1.00 297,000 1 in 4.71 $1,200 BETTY BOOP Scientific Games SCRATCH-OFF $2.00 298,000 1 in 3.94 $10,000 SEASONAL SLINGO Scientific Games SCRATCH-OFF $3.00 314,000 1 in 3.43 $21,000 Maryland TECH the HALLS Pollard Banknote Key # match $1.00 2,400,000 1 in 4.52 $1,000 TECH the HALLS Pollard Banknote Key # match $2.00 1,680,000 1 in 3.99 $10,000 TECH the HALLS Pollard Banknote Key # match $3.00 1,680,000 1 in 3.88 $30,000 TECH the HALLS Pollard Banknote Key # match $5.00 2,160,000 1 in 3.7 $50,000 TECH the HALLS Pollard Banknote Key # match $10.00 960,000 1 in 3.27 $100,000 Massachusetts Holiday Gold Scientific Games Key # match $10.00 12,000,000 1 in 3.54 $2,500,000 Holiday Surprise Scientific Games Key # match $2.00 15,000,000 1 in 4.70 $50,000 Nutcracker Cash Scientific Games Key # match $5.00 15,000,000 1 in 4.53 $1,000,000 New Year Tripler Scientific Games Key # match $2.00 11,000,000 1 in 4.72 $50,000 Holiday Cash GTECH Find $1.00 12,000,000 1 in 4.85 $10,000 Minnesota Jingle Bell Bucks Scientific Games Reveal $1.00 1 in 3.74 $500 Merry Money Scientific Games Find $2.00 1 in 3.55 $10,000 Stocking Stuffer Pollard Crossword $3.00 1 in 3.64 $20,000 Crossword Holiday Gift Scientific Games Key # match $5.00 1 in 3.47 $100,000 Missouri Season’s Greetings Pollard Key # match $10.00 1,680,000 1 in 3.32 $250,000 Happy Holidays Pollard Key # match $5.00 3,000,000 1 in 3.95 $100,000 Bearing Gifts Pollard Reveal $3.00 3,600,000 1 in 3.86 $50,000 Santa Paws Pollard Key # match $2.00 5,280,000 1 in 4.41 $25,000 Secret Santa Pollard Reveal $1.00 8,400,000 1 in 4.74 $500 Montana Frosty Fun Scientific Games Match 3 $1.00 1 in 4.02 $500 Peppermint Doubler Scientific Games Key Symbol $2.00 1 in 3.30 $5,000 Nebraska Quick 7s (Holiday) GTECH Key Symbol $1.00 1 in 3.6 7,000 Holiday Gifts GTECH Key # match $2.00 1 in 3.35 10,000 Naughty or Nice GTECH Key # match $5.00 1 in 2.03 35,000 New Holiday Doubler Scientific Games Key Symbol $1.00 1 in 4.14 $100 Hampshire Holiday Hundreds Scientific Games Key # match $2.00 1 in 4.37 $10,000 Holiday Magic Scientific Games Key # match $5.00 1 in 4.32 $75,000 Holiday Wishes Scientific Games Key Symbol $10.00 1 in 3.91 $200,000 North Carolina Holiday Cash GTECH Match 3 $1.00 4,560,000 1 in 4.72 1,000.00 Winner Green Scientific Games Find $2.00 3,360,000 1 in 4.71 20,000.00 Mistletoe Bingo GTECH Bingo $3.00 1,920,000 1 in 4.26 50,000.00 Jingle Big Ol’ Bucks GTECH Key # match $5.00 2,760,000 1 in 3.98 100,000.00 Holiday Gold GTECH Key # match $10.00 1,800,000 1 in 3.37 1,000,000.00 Ohio Holiday Cash Scientific Games Instant Game $1.00 22,000,000 1:3.99 $500 Holiday Gift Scientific Games Instant Game $2.00 11,000,000 1:3.96 $10,000 Happy Holidays Scientific Games Instant Game $3.00 5,000,000 1:3.83 $50,000 Holiday Lucky Times 10 Scientific Games Instant Game $5.00 10,000,000 1:3.71 $250,000 Holiday Spectacular Pollard Instant Game $10.00 5,000,000 1:3.66 $500,000 Oklahoma Holiday Magic Scientific Games Key Symbol $1.00 960,000 1 in 4.4 $2,500 Sweet Holiday Oregon GTECH Crossword $5.00 10,000 1 in 3.33 $50,000 Crossword Super Shoppers Pollard Match 3 $2.00 21,600 1 in 3.55 $10,000 Holiday Surprise Pollard Match 3 $1.00 9,600 1 in 3.66 $1,000 Midnight Money & Pollard Key # match $20.00 7,200 1 in 2.66 $250,000 Lucky Day INSIGHTS November/December 2013 77

NASPL Lotteries Holiday Instants

Odds of Lottery Game Name Vendor Game Type Price Point Order # Top Prize Winning Pennsylvania Merry Millionaire Scientific Games Key # match $20.00 4,800,000 1 in 3.11 $1,000,000 Sleigh Ride Scientific Games Key # match $10.00 6,000,000 1 in 3.23 $300,000 Holiday Gifts Scientific Games Key Symbol $5.00 10,800,000 1 in 4.2 $100,000 Merry Multiplier Scientific Games Extended Play $3.00 8,400,000 1 in 4.08 $50,000 Cashing Thru the Snow Scientific Games Key Symbol $2.00 12,000,000 1 in 4.6 $25,000 Snow Days Scientific Games Match 3 $1.00 20,400,000 1 in 4.72 $5,000 Rhode Island Holiday Cash Scientific Games Holiday $1.00 1,035,600 1 in 4.22 $250 Holiday Cheer Scientific Games Holiday $2.00 814,500 1 in 4.61 $10,000 Winter Winfall Scientific Games Holiday $5.00 546,540 1 in 3.25 $35,000 Trim The Tree Scientific Games Holiday $10.00 303,570 1 in 3.57 $75,000 South Carolina Holiday Cheer Scientific Games Find $1.00 1,920,000 1 in 4.06 $1,000 Jingle Jackpot Scientific Games Key # match $2.00 1,920,000 1 in 4.09 $20,000 South Dakota Stocking Stuffer Scientific Games Match 3 $1.00 600,000 1 in 4.14 $1,000 Snow Globe Scientific Games Key # match $2.00 320,000 1 in 3.97 $10,000 Tis The Season Scientific Games Key # match $5.00 240,000 1 in 3.69 $50,000 Texas Holiday Cheer GTECH Printing Key Symbol $1.00 14,160,000 1 in 4.42 $3,000 Holiday Millions GTECH Printing Key # match $20.00 2,520,000 1 in 3.08 $1,000,000 Season’s Greetings Pollard Key # match $2.00 9,120,000 1 in 4.38 $20,000 Trim The Tree Scientific Games Key Symbol $5.00 8,040,000 1 in 3.83 $100,000 Gifts Galore Pollard Key Symbol $10.00 4,560,000 1 in 3.19 $250,000 Merry Money Scientific Games Key # match $5.00 6,600,000 1 in 3.83 $100,000 Vermont Holiday Magic Scientific Games Key # match $10.00 1,000,000 1 in 3.39 $50,000.00 Holiday Money Scientific Games Key # match $5.00 1,000,000 1 in 4.09 $5,000.00 Jingle Bell Bonus Scientific Games Key # match $2.00 1,000,000 1 in 4.06 $1,000.00 Merry Money Scientific Games Match 3 $1.00 1,000,000 1 in 4.08 $100.00 Washington Nutcracker Cash Scientific Games Scratch $5.00 987,500 1 in 3.87 $50,000 Jolly Jingle Jackpot Scientific Games Scratch $5.00 987,450 1 in 3.78 $50,000 Snow Flurries Scientific Games Scratch $2.00 1,050,000 1 in 3.89 $20,000 Bah Humbucks Scientific Games Scratch $2.00 1,031,000 1 in 3.89 $20,000 Winter Green Scientific Games Scratch $1.00 1,450,800 1 in 4.41 $3,000 Season’s Greetings Scientific Games Scratch $1.00 1,467,400 1 in 4.58 $5,000 WCLC Happy Holidays Pollard Banknote Match 3 $1.00 2,000,000 1 in 4.92 $10,000 Jingle Bell Bucks Pollard Banknote Number match $2.00 1,000,000 1 in 4 $25,000 Christmas List Pollard Banknote Letter match $3.00 750,000 1 in 3.87 $50,000 Bingo Snowflake Pollard Banknote Bingo $3.00 1,000,000 1 in 3.65 $50,000 Merry Money Pollard Banknote Match 3 $4.00 738,000 1 in 3.56 $75,000 Lucky Lines Pollard Banknote Symbol match $4.00 960,000 1 in 3.2 $75,000 Holiday Riches Pollard Banknote Key # match $5.00 750,000 1 in 3.52 $100,000 Holiday Treasures Pollard Banknote Key # match $10.00 600,000 1 in 3.3 $150,000 Player’s Choice Mega Pollard Banknote Various games $20.00 660,000 1 in 1 $1,000,000 Pack West Virginia SNOW CRITTERS GTECH Printing MATCH 3 $1.00 960000 1 in 4.94 2400 RED, WHITE & GREEN GTECH Printing FIND $2.00 720000 1 in 4.53 12000 A CHRISTMAS STORY™ GTECH Printing FIND $3.00 540000 1 in 3.63 24000 Wisconsin Stocking Stuffer Scientific Games Scratch $1.00 855,300 1 in 4.0 $200 Kitty Series: Kitty Claus Pollard Scratch $1.00 936,000 1 in 4.8 $100 Naughty or Nice Scientific Games Scratch $3.00 1,197,300 1 in 3.7 $30,000 Crossword Sweet Winnings Gtech Printing Scratch $5.00 968,000 1 in 4.2 $500 Holiday Surprise Pollard Scratch $10.00 308,800 1 in 3.8 $50,000 Holiday Countdown Pollard Scratch/Pull Tab $15.00 277,200 1 in 2.9 $100,000 Holly Jolly Raffle NA Lotto/Raffle $5.00 100,000 1 in 96 $50,000 78 INSIGHTS November/December 2013

A very good, if not great,

Inyear total, American for lotteries most fared quite well lotteriesin fiscal 2013 after smashing all records the previous year; Canadian lotteries rebounded.

By Patricia McQueen

One of the biggest challenges lotteries face decline in Delaware’s casino business – VLTs and table games at its three racetrack casinos have sagged due to neighboring is to follow up record years that were based competition. Among all products, the lottery is down in sales, in part on remarkable performance in unpre- but a full year of keno will help going forward, as should the dictable jackpot games. Fiscal 2012 was such introduction of online casino games this month.

a record year in the United States, as some Among lotteries that operate casino games, Maryland was 75 percent of American lotteries set records far and away the industry leader. Still in its growth phase, for sales, and in most cases, revenues to good with two more casinos on the horizon, that success will continue. Total sales (defined as traditional lottery ticket sales causes. From the beginning, fiscal 2013 was plus net gaming revenues from gaming machines and table going to be a challenge, and as it turned out, games) reached almost $2.4 billion in fiscal 2013, up 18.8 most lotteries were up to the task. In fact, percent. Ohio is still in its infancy and growth there will continue as new video lottery facilities open. More on those two thirty seven lotteries reported an increase in states later. sales for the year; those that didn’t manage an increase weren’t off by much. Game Highlights Overall, total sales of traditional (non-casino) lottery games Instant games remain by far the largest single game category in fiscal 2013 edged past $63 billion, an increase of 3.7 perfor American lotteries. Scratch ticket sales surpassed $37.5 cent. Including casino gaming products (video lottery termi- billion in fiscal 2013, an increase of 5.1 percent, and the cate- nals/slot machines and table games) operated by some lot- gory gained market share ever so slightly, accounting for 59.5 teries, total sales were almost $73.9 billion, an increase of percent of traditional sales in fiscal 2013 compared to 58.7 4.6 percent. percent in fiscal 2012.

Three lotteries reported double-digit sales increases for tra- But individual results were all over the map – more lotteries ditional games in fiscal 2013. Leading the way was the Flori- saw instant sales fall than in the previous year and only three da Lottery, which jumped past Massachusetts to become the posted double-digit gains, compared to 14 in fiscal 2012. The second largest U.S. lottery in terms of sales, behind only New leader by far was, not surprisingly, the Florida Lottery, with York. Florida surpassed $5 billion in sales for the first time, an an 18 percent increase. The Hoosier Lottery reported a 12.3 increase of 12.7 percent over fiscal 2012. The much smaller percent increase in instant sales, followed by Washington’s Idaho Lottery also had a great year, with sales increasing by Lottery with an 11.9 percent gain. 12.3 percent and net revenues to good causes up by an industry-leading 16.1 percent. Fiscal 2013 saw several large Powerball jackpots, including two that surpassed $500 million for the first time ever. As a The Delaware Lottery reported a sales gain of 11.1 percent result, Powerball sales soared during the year, up almost 50 among its non-casino games, but that includes an expansion percent. On the flip side, Mega Millions sagged, unable to of sports betting. Even without that, Delaware was strong come anywhere close to its record runup to the $656 million due to Powerball and the introduction of keno. Sports bet- jackpot the year before. Combined, the two games produced ting and keno were two measures undertaken to counter the $8.1 billion, up 4.8 percent from fiscal 2012. Mega Millions INSIGHTS November/December 2013 79

underwent a makeover in October in an attempt to reverse 77.99 percent. its fortunes. The Lottery “also focused on executing best practices with Other lotto games continued to decline, on average, but both our corporate and independent retailers,” said O’Con- there were bright spots. In particular, the regional Lucky for nell. That included providing retailers with a Scratch-Off plan- Life game played in New England brought smiles to the faces o-gram to ensure that stores carried the best-selling games of lottery officials in the six participating jurisdictions, trig- and installing menu boards in some 25 percent of retail loca- gering strong growth in the category. tions to date. “The boards helped improve product awareness, and since each bin has a visible bin number and price Hot Lotto, another regional game, is now played in 16 states point, it made purchase decisions easier for the consumers and had a strong year due in part to a long jackpot run – total and finding the ticket easier for the retailers.” In addition, sales were up more than 15 percent. Tennessee joined the some of the larger corporate stores have been placed on an game in May, and with it came a matrix change and a switch auto-replenishment program to reduce out of stock games. to an after-tax all-cash jackpot. In preparation for its 25th anniversary in 2013, the Florida Among other games, the strongest growth across all lotter- Lottery also completed a brand transformation. “Every ma- ies came from terminal-printed instant games, often called ture lottery goes through the natural decline in interest by Fast Play or EZ Play. Although they only accounted for $118 the playing public,” said O’Connell. “Through the new brand, million in sales during fiscal 2013, the growth rates were phe- we wanted to regenerate the excitement felt across the state nomenal in the jurisdictions offering them, with sales up 45 when the Florida Lottery sold its first ticket in 1988. And we percent on average. did. Feedback from our players and retailers has been nothing but positive. The new Florida Lottery logo exudes excitement.” Flamingo Fortune All signs are that the excitement is continuing – to date, As noted, Florida led the country in terms of sales growth. fiscal 2014 sales are running 13 percent above last year. And it wasn’t just the name of a unique instant ticket – Fla- “It will take a continued best effort from our Lottery team, mingo Fortune can describe the entire experience of the Flor- vendors and our retail partners to provide consumers with ida Lottery in recent years. The Lottery certainly deserves ac- great games supported by strong marketing efforts and con- colades for its industry-leading performance among lotteries tinued improvement in space, location and overall Lottery without casino gaming in fiscal 2013. And adding more than product awareness at the store level. If we continue to do $1 billion in sales in just two years is a remarkable achieve- those things, we will continue to have record growth,” said ment. “I’m proud of every employee at the Florida Lottery O’Connell. and every one of our 13,000-plus retailers for this significant accomplishment,” said Secretary Cynthia O’Connell.

She explained that there really was no secret to its success. Leading the way in transfers “We had a great product mix, a dedicated sales team, an Just behind Florida in percentage sales growth was Ida- aggressive integrated marketing plan and a little bit of luck. ho, with a 12.3 percent increase to land at $197.4 million. Our players deserve a lot of credit too.” They were attracted Even more remarkable was the 16.1 percent increase in the to games of varying price points, including the unique $20 net revenues turned over to good causes, which totaled al- $3,000,000 Flamingo Fortune and the $25 25th Anniversary most $48.3 million in fiscal 2013. There is a little asterisk to Millionaire game. The latter brought back memories of the that number, because $1 million of the revenue came from very first Florida Lottery game Millionaire, a $1 ticket in 1988. an unclaimed Powerball ticket. However, that’s part of the The new version was Florida’s first $25 ticket and offered the business as big prizes do go unclaimed now and then. Even highest prize payout of any Florida Lottery game in history at without that bonus, Idaho still turned in impressive growth

“Through the new brand, we wanted to regenerate the excitement felt across the state when the Florida Lottery sold its first ticket in 1988.” 80 INSIGHTS November/December 2013

“As we move forward, that instant ticket portfolio is one that’s really critical to us because it’s one of the only things we can really control...”

in bottom-line revenues and led the rest of the lotteries by ments, primarily bars and taverns. “The market acceptance this measure. has been tremendous,” said Anderson, noting that there are currently more than 150 locations with about 300 terminals. How did Idaho do it? Well, almost all of its games reported “People still buy paper tickets, but it’s old technology, and an increase in sales during fiscal 2013. Instant games, which TouchTabs are the same games in a modern format.” account for some 55 percent of the Lottery’s sales, were up 8.9 percent. Pulltab sales were up 40 percent thanks to TouchTabs. On the draw side, Powerball and Mega Millions Casino Impacts combined were up almost 12 percent; they account for Many lotteries these days are involved in some form of casi- about 28 percent of the lottery’s total sales. Hot Lotto was no gaming – VLTs, slot machines and table games. And there up 13 percent and Pick 3 was up 6.4 percent. And Idaho con- is always debate about whether these games impact tradi- tinues to do well with raffles. tional lottery sales. The question certainly came up in Mas- sachusetts before that state authorized casinos, given that “We had a terrific sales year,” said Director Jeff Anderson. the Massachusetts Lottery is one of the most successful in “And anytime you have good performance in draw games, the world. Lottery officials do expect some impact, at least as we did, they do contribute more to our stakeholders than initially, when the casinos finally come to market there. most of our portfolio.” He added that the Lottery has also been very rigorous in managing its expenses, with fewer em- Recently, two large lotteries have felt the impact of new casi- ployees today than when it was established in 1989, and that no operations in their jurisdictions, but since both Maryland helps produce more revenue to good causes. and Ohio are involved in at least some of that gaming activity, the net return to governments still increased. The Maryland Anderson is most proud of Idaho’s improvements in its in- Lottery suffered its first decline in traditional lottery sales in stant ticket product line over the past few years, and pointed 16 years after a remarkable run of 15 straight increases, and out that the growth hasn’t come simply from adding price the Ohio Lottery also saw traditional sales decline. points. “We have worked very hard over the last four or five years in refining the portfolio, and making sure we’ve In Maryland, keno sales were hit hardest, down 11 percent got an effective core game strategy.” A lot of emphasis has for the year. Director Stephen Martino told Insights earlier been placed in the way games are presented at retail and this year that players seeking the action that keno provides how retailers interact with consumers. The Lottery’s retailer see the higher payout on the slot machines at the casinos network has grown significantly over this period as well, and and take their business there. But since the Maryland Lottery that also helps drive sales. and Gaming Control Agency runs both operations, the net to the state has grown dramatically since the casinos opened. And instant games are very important to lotteries. “As we In fact, the Agency generated almost $869 million for good move forward, that instant ticket portfolio is one that’s really causes in fiscal 2013 (including state funds and revenue al- critical to us because it’s one of the only things we can really located for local impact grants), up 26.8 percent from the control – how we develop the games, market them and pro- previous year because of gaming. mote them. We can’t control jackpots on draw games.” Maryland’s instant sales were also down somewhat, and that There are similar benefits to pulltabs, currently offered by was Ohio’s experience as well. Instant games in Ohio account only a few lotteries, but on a much smaller scale as the games for about 53 percent of its sales, and they were off more than are low-value and often limited in distribution. But pulltab 5 percent in fiscal 2013. That was a major reason for the Lot- sales in Idaho have received a boost thanks to TouchTabs, tery’s 1.5 percent decline in traditional game sales. But over- which contributed to a 40 percent increase in pulltab sales all, Ohio returned $803.1 million to good causes, an increase during fiscal 2013. Introduced in November 2010 during a of 4.2 percent, thanks to the early development of racetrack pilot test, they simply add a kiosk-based play style to a tra- casinos, where VLTs are run by the Lottery. “Our transfers ditional paper pulltab ticket. The terminals, produced by have been up, up, up, year after year,” said Ohio Lottery Exec- International Gamco, are limited to age-controlled environ- utive Director Dennis Berg, thanks to operating efficiencies, INSIGHTS November/December 2013 81

reasons) and to further develop its EZPLAY games. “EZPLAY is growing tremendously because of the progressive component that we added in January.” “We have already had Canadian Update a very rapid growth in All of the Canadian lottery operators reported an overall increase in traditional lottery game sales, with growth in casino gaming, and most individual jurisdictions. Nationwide, total sales- ex ceeded C$8 billion in fiscal 2013, an increase of 2.8 percent over the previous year. That reversed an overall decline in well over $1 billion has fiscal 2012 caused in no small part by the luck of the draw been taken out of the with Lotto Max, the country’s largest game. The experience of the past three years highlights the chal- hands of people that lenges lotteries face with jackpot games. Several large Lotto Max jackpots during fiscal 2011 sent lottery sales to new spend discretionary heights; in fiscal 2012, sales could not be sustained with fewer jackpots, and overall sales declined. In fiscal 2013, dollars on gaming,” industry growth resumed thanks in no small part to a 9.1 percent increase in Lotto Max sales across the country. record jackpots in Powerball and Mega Millions and now Lotto Max remains one of the most successful and innova- VLTs. “I really try to focus on that message.” tive lotto games ever developed. In fact, it has spawned regional versions in Quebec and in the provinces of the West- Between May 2012 and April 2013, Ohio opened four casi- ern Canada Lottery Corp. WCLC created Western Max, and nos and two racetrack casinos. Five more racetrack casinos the game helped trigger a 14.5 percent overall sales growth – all contributing to the Lottery’s bottom line – are yet to in the (non-national) lotto category for its member lotteries open. “We have already had a very rapid growth in casino even with a March 1 launch (Canada’s lotteries end their gaming, and well over $1 billion has been taken out of the fiscal years on March 31). According to Marketing Director hands of people that spend discretionary dollars on gam- Brad Wiebe, Western Max was designed to mirror as many ing,” said Berg. That’s a lot of new competition for those Lotto Max game attributes as possible. A 7/49 matrix, it has dollars, he added. “I think where we see gaming’s impact is a top prize of $2 million with seven additional $1 million on the mature product line of instant tickets.” prizes in each weekly draw. “The game was an immediate success,” he said, well exceeding budgeted sales. As a bo- Maturity, or lack thereof, is one reason why, unlike the ex- nus, more than 88 percent of all Western Max tickets sold perience in Maryland, Ohio’s keno business is thriving – up included the Extra spiel option. The game helped WCLC almost 20 percent in fiscal 2013. Keno is a relatively new land atop the Canadian lottery ranks in terms of percentage product in Ohio and is still expanding through additional increase in sales for the year. locations and trade styles. The game was initially limited to bars and taverns, but a Keno to Go option was added last Among other games, the instant ticket category in Cana- year for sales at all lottery retailers, and keno monitors are da is nowhere near the relative size that it is in the United being added to these locations this year. Although there States, averaging about 26 percent of total sales. But the might be some impact on the game from casinos, it would star performer in fiscal 2013 was the British Columbia Lot- be masked by that growth. tery Corp., which saw instant ticket sales increase by almost 24 percent. Two factors contributed to that growth – an To address the instant ticket product line, Ohio will be in- increase in the number of national instant games (from two troducing its first $30 game this winter, to help celebrate to four) and an increase in the number of games at the $3, the Lottery’s 40th anniversary. There has also been a lot $5, $10 and $20 price points. of success with $20 Playbooks, and a third version is in the works.

But the Lottery is not just focusing on instant games. “Inter- nally, we do want to challenge ourselves to keep our entire See next pages for the traditional portfolio as vibrant as possible,” said Berg. To that end, there are plans to introduce a loyalty program complete set of numbers... (Maryland launched a rewards program in June for similar 82 INSIGHTS November/December 2013

Fiscal 2013 Lottery Sales and Revenues - United States Mostly unaudited results. ••••••••••••• Daily Numbers Games ••••••••••••• Jurisdiction Instants Pulltabs 3-digit 4-digit 5-digit

Arizona $436,599,601 $3,865,494 $8,547,584 Arkansas $355,061,785 $6,161,706 $3,324,150 California $3,010,119,929 $135,519,698 $28,871,639 Colorado $368,583,078 $1,949,878 Connecticut $667,255,859 $126,385,444 $107,232,964 Delaware $47,451,154 $24,926,264 $19,205,373 D.C. $57,397,300 $49,118,458 $60,042,637 $16,154,037 Florida $3,028,526,854 $324,538,988 $244,141,279 Georgia $2,630,703,600 $476,842,423 $209,322,526 $10,034,991 Idaho $108,683,305 $21,821,290 $1,888,639 Illinois $1,766,531,721 $269,305,442 $198,536,569 Indiana $614,817,365 $1,541,907 $29,838,420 $29,590,638 Iowa $202,299,747 $16,209,309 $6,804,870 $3,085,784 Kansas $117,195,547 $10,193,505 $5,823,707 Kentucky $522,226,000 $125,619,000 $38,742,000 Louisiana $163,108,984 $49,509,325 $39,457,197 Maine $163,440,385 $5,154,634 $4,207,134 Maryland $485,838,672 $245,523,090 $267,800,219 Massachusetts $3,342,699,000 $714,000 $324,475,000 * Michigan $827,044,239 $31,684,717 $321,124,099 $351,040,750 Minnesota $363,835,268 $13,891,885 Missouri $758,900,234 $65,755,962 $34,491,756 Montana $17,279,829 Nebraska $83,483,858 $3,709,385 New Hampshire $192,475,089 $5,123,090 $4,809,887 New Jersey ** $1,474,285,065 $434,042,304 $266,142,981 New Mexico $69,886,435 $3,492,915 New York $3,724,194,000 $847,203,000 $793,543,000 North Carolina $1,011,943,189 $258,868,248 $103,902,116 North Dakota Ohio $1,428,058,905 $345,199,336 $189,787,754 $27,985,027 Oklahoma $89,393,668 $4,331,388 $1,859,943 Oregon $117,079,308 $1,351,260 Pennsylvania $2,305,099,594 $345,146,613 $242,894,421 $43,189,461 Rhode Island $85,003,754 $24,522,578 * South Carolina $803,481,582 $148,339,707 $70,198,679 South Dakota $25,298,065 Tennessee $1,088,740,000 $57,164,000 $29,219,000 Texas $3,222,593,714 $274,032,386 $79,809,072 Vermont $74,214,288 $1,365,930 $1,254,733 Virginia $887,139,810 $253,682,839 $232,184,205 Washington $356,021,877 $16,747,637 $11,916,054 West Virginia $108,634,752 $8,301,649 $4,748,002 Wisconsin $324,035,688 $2,690,060 $23,840,032 $12,360,681 Total U.S. $37,526,662,097 $88,720,282 $5,673,817,551 $3,685,074,401 $97,363,516

All figures should be considered preliminary and unaudited. Lotto games include any variety of lotto-style games based on annuitized payouts; cash lotto games include any variety of lotto-style games based on lump-sum cash payouts. Add-on games are generally included with the host game sales; exceptions are if a game is available on several base games, then it is included in the “other” category. For EGMs, sales represents net machine income for Delaware, Maryland, New York, Ohio and West Virginia; cash-in figures are shown for Oregon, Rhode Island and South Dakota, along with prizes paid (cash out). Revenues to beneficiaries may reflect either actual fiscal year transfers or net income available for distribution; includes revenue from gaming operations where applicable.

Specific notes: * Massachusetts and Rhode Island do not separate sales of 3- and 4-digit daily numbers games ** New Jersey’s transfers do not include a $120 million guaranteed accelerated payment received from Northstar New Jersey, the successful bidder in the Lottery’s sales and marketing contract. INSIGHTS November/December 2013 83

Fiscal 2013 Lottery Sales and Revenues - United States Mostly unaudited results.

Jurisdiction Lotto Cash Lotto Powerball Mega Millions

Arizona $32,998,104 $19,435,396 $151,219,355 $32,370,173 Arkansas $2,927,572 $6,994,820 $47,409,700 $13,891,465 California $375,374,534 $166,568,764 $183,567,431 $376,718,523 Colorado $32,561,865 $21,279,304 $116,726,233 $23,217,230 Connecticut $52,582,131 $32,564,213 $107,382,701 $23,727,284 Delaware $5,145,273 $34,174,174 $7,605,629 D.C. $20,608,685 $6,215,170 Florida $441,875,335 $290,073,423 $654,262,858 $16,698,197 Georgia $24,005,806 $100,544,679 $177,740,541 $93,345,540 Idaho $2,723,962 $2,177,861 $45,350,144 $9,253,222 Illinois $96,461,324 $134,515,319 $236,001,905 $108,229,384 Indiana $46,573,192 $17,049,723 $142,018,333 $27,163,257 Iowa $4,483,605 $81,385,271 $13,317,888 Kansas $15,079,932 $52,050,674 $10,389,089 Kentucky $6,155,000 $21,843,000 $104,988,000 $27,093,000 Louisiana $25,564,558 $11,607,069 $129,940,266 $28,232,497 Maine $20,751,826 $374,814 $27,304,108 $4,459,466 Maryland $28,755,909 $32,268,012 $131,343,962 $71,019,424 Massachusetts $65,177,000 $70,232,000 $150,590,000 $55,497,000 Michigan $52,357,520 $53,261,306 $186,813,894 $101,578,552 Minnesota $31,067,922 $107,123,765 $15,121,576 Missouri $22,114,822 $41,124,233 $127,027,808 $26,028,887 Montana $5,407,112 $20,177,735 $3,536,396 Nebraska $14,723,203 $49,579,598 $9,257,030 New Hampshire $17,423,343 $46,159,886 $8,764,632 New Jersey ** $65,323,206 $144,392,456 $300,381,206 $136,832,941 New Mexico $6,767,906 $46,734,439 $8,078,050 New York $110,026,000 $301,085,000 $468,404,000 $254,432,000 North Carolina $64,480,563 $196,942,790 $53,665,710 North Dakota $5,256,838 $16,353,382 $3,314,304 Ohio $46,570,986 $61,512,022 $166,564,532 $102,775,717 Oklahoma $4,161,703 $76,046,572 $16,108,965 Oregon $42,930,670 $2,317,312 $58,322,876 $11,823,070 Pennsylvania $258,285,559 $400,856,124 $83,794,762 Rhode Island $8,726,218 $3,583,753 $40,949,997 $7,930,357 South Carolina $24,362,320 $117,621,173 $32,711,180 South Dakota $4,538,418 $20,995,592 $3,053,778 Tennessee $24,872,000 $133,207,000 $31,921,000 Texas $153,010,563 $115,856,883 $329,981,325 $137,441,779 Vermont $7,619,812 $12,034,883 $2,796,901 Virginia $29,193,670 $28,302,849 $145,690,841 $89,518,093 Washington $43,785,467 $22,764,290 $75,935,191 $35,485,582 West Virginia $5,237,499 $48,688,807 $9,274,409 Wisconsin $17,004,274 $49,754,775 $113,782,641 $21,634,551 Total U.S. $1,870,574,669 $2,225,353,129 $5,900,440,398 $2,155,323,660

Fiscal 2013 Lottery Sales and Revenues - United States Mostly unaudited results. •••••••••• Monitor Games ••••••••• Jurisdiction Hot Lotto Daily Keno Keno Others

Arizona Arkansas California $154,403,306 Colorado Connecticut Delaware $3,128,775 $2,471,762 D.C. $3,398,757 $11,793,460 $8,076,246 Florida Georgia $189,615,827 Idaho $3,050,816 Illinois Indiana $20,805,297 Iowa $11,664,946 Kansas $7,440,836 $20,465,130 $2,894,281 Kentucky Louisiana Maine $2,031,279 Maryland $344,802,037 $148,767,942 Massachusetts $800,658,000 $25,949,000 Michigan $11,393,756 $534,142,592 Minnesota $12,965,412 Missouri $65,389,456 Montana $3,145,517 $703,061 Nebraska New Hampshire $3,168,406 New Jersey ** New Mexico $5,933,935 New York $30,103,000 $579,929,000 North Carolina North Dakota $2,912,792 Ohio $800,948 $251,533,154 Oklahoma $8,306,635 Oregon $91,636,954 Pennsylvania Rhode Island $78,964,759 $1,381,565 South Carolina South Dakota $3,460,529 Tennessee $2,414,000 Texas Vermont $991,188 Virginia Washington $5,651,905 West Virginia $5,063,704 $5,671,808 Wisconsin Total U.S. $79,077,527 $69,457,967 $3,131,477,245 $187,069,034

Fiscal 2013 Lottery Sales and Revenues - United States Mostly unaudited results. Terminal-based Traditional Games Jurisdiction Raffles Instant games Other Total Sales % Change

Arizona $7,903,108 $692,938,815 7.2% Arkansas $385,105 $3,391,691 $439,547,994 -7.1% California $14,730,216 $4,445,874,040 1.7% Colorado $1,969,010 $566,286,598 3.8% Connecticut $5,564,355 $1,122,694,950 3.8% Delaware $25,422,927 $169,531,331 11.1% D.C. $9,100,595 $803,184 $242,708,528 -2.8% Florida $12,879,040 $5,012,995,974 12.7% Georgia $3,912,155,933 2.0% Idaho $2,500,000 $197,449,239 12.3% Illinois $22,993,882 $2,832,575,547 5.7% Indiana $1,137,020 $3,492,934 $934,028,086 9.2% Iowa $339,251,420 9.1% Kansas $3,276,780 $244,809,481 -0.5% Kentucky $846,666,000 2.8% Louisiana $447,419,896 4.1% Maine $227,723,646 -0.3% Maryland $1,756,119,267 -2.2% Massachusetts $3,275,000 $4,839,266,000 2.3% Michigan $5,954,230 $2,476,395,655 2.6% Minnesota $5,991,700 $10,400,056 $560,397,584 7.8% Missouri $1,140,833,158 4.0% Montana $2,599,780 $3,953,389 $179,442 $56,982,261 8.0% Nebraska $160,753,074 6.7% New Hampshire $1,413,191 $279,337,524 9.7% New Jersey ** $2,821,400,159 2.2% New Mexico $864,842 $141,758,522 6.0% New York $7,108,919,000 1.4% North Carolina $1,689,802,616 5.8% North Dakota $27,837,316 6.9% Ohio $9,136,980 $67,995,666 $2,697,921,027 -1.5% Oklahoma $200,208,874 0.2% Oregon $4,998,300 $330,459,750 2.3% Pennsylvania $20,399,160 $3,699,665,694 6.3% Rhode Island $2,301,580 $253,364,561 1.6% South Carolina $2,492,647 $1,199,207,288 5.6% South Dakota $57,346,382 7.9% Tennessee $1,367,537,000 4.3% Texas $63,560,735 $4,376,286,456 4.4% Vermont $1,809,653 $102,087,388 1.1% Virginia $6,945,500 $16,581,338 $1,689,239,145 4.5% Washington $1,279,240 $569,587,243 6.4% West Virginia $195,620,630 -2.8% Wisconsin $1,000,000 $566,102,701 3.4% Total U.S. $114,586,662 $118,003,068 $116,092,546 $63,039,093,751 3.7%

Fiscal 2013 Lottery Sales and Revenues - United States Mostly unaudited results. Total FY13 Total FY12 Jurisdiction EGMs Table Games Lottery Sales Lottery Sales % Change

Arizona $692,938,815 $646,675,473 7.2% Arkansas $439,547,994 $473,085,607 -7.1% California $4,445,874,040 $4,371,491,746 1.7% Colorado $566,286,598 $545,303,548 3.8% Connecticut $1,122,694,950 $1,081,740,066 3.8% Delaware $396,775,063 $65,591,850 $631,898,244 $703,226,231 -10.1% D.C. $242,708,528 $249,632,000 -2.8% Florida $5,012,995,974 $4,449,896,000 12.7% Georgia $3,912,155,933 $3,834,675,000 2.0% Idaho $197,449,239 $175,827,760 12.3% Illinois $2,832,575,547 $2,680,137,696 5.7% Indiana $934,028,086 $855,584,757 9.2% Iowa $339,251,420 $310,851,725 9.1% Kansas $244,809,481 $246,144,512 -0.5% Kentucky $846,666,000 $823,546,000 2.8% Louisiana $447,419,896 $429,615,669 4.1% Maine $227,723,646 $228,353,561 -0.3% Maryland $560,310,721 $48,037,794 $2,364,467,782 $1,989,623,638 18.8% Massachusetts $4,839,266,000 $4,729,599,000 2.3% Michigan $2,476,395,655 $2,413,458,638 2.6% Minnesota $560,397,584 $520,033,537 7.8% Missouri $1,140,833,158 $1,097,427,696 4.0% Montana $56,982,261 $52,755,656 8.0% Nebraska $160,753,074 $150,612,389 6.7% New Hampshire $279,337,524 $254,659,970 9.7% New Jersey ** $2,821,400,159 $2,759,374,726 2.2% New Mexico $141,758,522 $133,787,352 6.0% New York $1,825,369,000 $8,934,288,000 $8,439,473,000 5.9% North Carolina $1,689,802,616 $1,596,693,058 5.8% North Dakota $27,837,316 $26,043,816 6.9% Ohio $165,524,752 $2,863,445,779 $2,750,050,233 4.1% Oklahoma $200,208,874 $199,854,378 0.2% Oregon $2,621,425,999 $2,951,885,749 $2,873,871,863 2.7% Pennsylvania $3,699,665,694 $3,480,900,689 6.3% Rhode Island $3,445,316,333 $1,881,238 $3,700,562,132 $3,532,178,174 4.8% South Carolina $1,199,207,288 $1,135,645,079 5.6% South Dakota $580,092,145 $637,438,527 $603,192,509 5.7% Tennessee $1,367,537,000 $1,311,203,000 4.3% Texas $4,376,286,456 $4,190,815,913 4.4% Vermont $102,087,388 $100,927,079 1.1% Virginia $1,689,239,145 $1,616,001,647 4.5% Washington $569,587,243 $535,197,166 6.4% West Virginia $1,059,638,324 $73,117,596 $1,328,376,550 $1,457,530,444 -8.9% Wisconsin $566,102,701 $547,640,735 3.4% Total U.S. $10,654,452,337 $188,628,478 $73,882,174,566 $70,604,338,736 4.6%

Fiscal 2013 Lottery Sales and Revenues - United States Mostly unaudited results. FY13 Prizes FY13 Prizes FY13 Transfers to Jurisdiction Traditional EGMs Beneficiaries

Arizona $421,403,370 $176,522,849 Arkansas $292,124,182 $90,257,161 California $2,652,095,102 $1,284,370,779 Colorado $348,231,797 $135,631,761 Connecticut $699,062,914 $314,000,000 Delaware $99,264,072 $237,231,213 D.C. $127,000,000 $70,000,000 Florida $3,557,296,000 $1,424,307,000 Georgia $2,332,452,746 $927,478,347 Idaho $122,888,172 $48,279,452 Illinois $1,716,869,000 $793,521,650 Indiana $581,345,525 $224,661,622 Iowa $200,801,768 $84,890,729 Kansas $138,554,999 $74,522,230 Kentucky $494,912,000 $223,808,000 Louisiana $236,159,214 $160,214,975 Maine $142,683,224 $53,521,722 Maryland $1,036,324,081 $868,718,024 Massachusetts $3,523,859,000 $955,801,000 Michigan $1,459,388,123 $735,620,608 Minnesota $347,073,349 $135,236,613 Missouri $752,964,849 $280,007,039 Montana $32,176,883 $13,083,796 Nebraska $93,092,437 $40,014,701 New Hampshire $173,357,468 $74,334,758 New Jersey ** $1,670,394,764 $965,009,581 New Mexico $77,068,558 $43,684,681 New York $4,219,992,000 $3,045,774,000 North Carolina $1,024,436,531 $479,509,312 North Dakota $14,216,631 $7,922,500 Ohio $1,668,037,433 $803,131,000 Oklahoma $104,463,424 $70,613,527 Oregon $213,311,748 $1,884,055,719 $530,591,983 Pennsylvania $2,299,005,529 $1,067,376,666 Rhode Island $153,205,932 $2,924,569,227 $379,224,717 South Carolina $775,452,827 $305,211,230 South Dakota $32,418,546 $395,451,581 $107,703,315 Tennessee $812,547,000 $339,712,000 Texas $2,767,358,065 $1,214,101,786 Vermont $64,556,404 $22,927,105 Virginia $1,025,174,874 $486,528,087 Washington $339,365,820 $139,226,617 West Virginia $115,263,595 $522,987,001 Wisconsin $329,201,664 $156,296,284 Total U.S. $39,286,851,620 $5,204,076,527 $20,113,567,421

Fiscal 2013 Lottery Sales and Revenues - Canada All Figures in Canadian Dollars

•••••••••• Daily Numbers •••••••••• Jurisdiction Instants Pulltabs 3-digit 4-digit

British Columbia $213,301,182 $32,555,119 Ontario $950,720,000 $61,653,000 $49,655,000 Quebec $450,536,000 $42,608,000

Alberta $170,372,631 $14,804,603 Manitoba $61,930,656 $4,832,246 NW Territories $6,102,584 $162,200 Saskatchewan $53,874,978 $2,622,394 Yukon $2,690,205 $70,424 WCLC Total $294,971,054 $22,491,867

New Brunswick $52,030,827 $15,899,889 $578,972 Newfoundland & Labrador $58,780,746 $79,468,984 $292,596 Nova Scotia $66,441,743 $21,191,195 $556,633 Prince Edward Island $11,070,569 $6,628,590 $74,243 ALC Total $188,323,884 $123,188,658 $1,502,444

Total Canada $2,097,852,120 $155,743,777 $126,752,867 $51,157,444

Jurisdiction Lotto Lotto Max Lotto 6/49 Spiel

British Columbia $48,943,868 $219,116,906 $166,097,841 $55,862,360 Ontario $246,943,000 $803,243,000 $632,791,000 $189,821,000 Quebec $192,876,000 $324,114,000 $351,502,000 $137,354,000

Alberta $42,610,061 $282,593,092 $167,144,088 $77,785,048 Manitoba $9,485,276 $63,928,502 $41,930,114 $20,524,969 NW Territories $494,106 $4,812,413 $2,628,534 $1,050,196 Saskatchewan $9,454,671 $60,406,118 $35,724,432 $19,705,656 Yukon $349,143 $2,308,990 $1,321,140 $722,488 WCLC Total $62,393,257 $414,049,115 $248,748,308 $119,788,357

New Brunswick $10,616,949 $30,706,618 $27,246,002 $17,820,368 Newfoundland & Labrador $7,711,238 $31,136,570 $23,072,858 $15,872,744 Nova Scotia $11,360,852 $37,989,192 $33,893,924 $18,536,315 Prince Edward Island $1,829,678 $4,846,244 $4,412,390 $2,854,074 ALC Total $31,518,717 $104,678,624 $88,625,174 $55,083,501

Total Canada $582,674,842 $1,865,201,645 $1,487,764,323 $557,909,218

For EGMs, sales represents net machine income in all jurisdictions. Ontario proceeds include income from bingo operations. ALC proceeds include income from linked bingo in Nova Scotia and income from the racetrack gaming centers in PEI. Columns may not add to totals due to rounding INSIGHTS November/December 2013 89

Fiscal 2013 Lottery Sales and Revenues - Canada All Figures in Canadian Dollars

Jurisdiction Club Keno Daily Keno Sports Other

British Columbia $230,129,960 $54,911,086 $72,853,156 Ontario $83,418,000 $256,868,000 $12,357,000 Quebec $138,246,000 $49,791,000 $105,811,000

Alberta $3,153,731 $56,936,680 Manitoba $1,660,679 $22,128,880 NW Territories $265,186 $893,437 Saskatchewan $2,338,870 $13,964,289 Yukon $1,117,160 $392,649 WCLC Total $8,535,626 $94,315,935

New Brunswick $3,361,996 $8,703,675 $1,700,471 Newfoundland & Labrador $2,816,073 $7,725,724 $2,402,074 Nova Scotia $5,166,090 $15,780,867 $2,981,655 Prince Edward Island $527,442 $1,979,970 $295,859 ALC Total $11,871,601 $34,190,236 $7,380,059

Total Canada $238,665,586 $233,535,601 $490,076,257 $198,401,215

•••••••••• Traditional Games •••••••••• Jurisdiction Total Sales % Change EGMs Table Games

British Columbia $1,093,771,478 3.0% Ontario $3,287,469,000 2.5% Quebec $1,792,838,000 0.2% $972,790,000

Alberta $815,399,934 9.6% Manitoba $226,421,322 1.5% NW Territories $16,408,656 3.0% Saskatchewan $198,091,408 4.0% Yukon $8,972,199 6.9% WCLC Total $1,265,293,519 7.0%

New Brunswick $168,665,766 -0.1% $128,571,691 Newfoundland & Labrador $229,279,607 6.5% $122,686,743 Nova Scotia $213,898,466 3.2% $113,872,086 Prince Edward Island $34,519,059 -1.7% $28,707,020 $916,695 ALC Total $646,362,898 3.2% $393,837,539 $916,695

Total Canada $8,085,734,895 2.8% $1,366,627,539 $916,695

Fiscal 2013 Lottery Sales and Revenues - Canada All Figures in Canadian Dollars Total FY13 Total FY12 FY13 Proceeds to Jurisdiction Lottery Sales Lottery Sales % Change FY13 Prizes Beneficiaries

British Columbia $1,093,771,478 $1,061,422,000 3.0% $594,140,398 $298,236,902 Ontario $3,287,469,000 $3,206,508,000 2.5% $1,796,238,000 $860,998,000 Quebec $2,765,628,000 $2,787,345,000 -0.8% $943,316,000 $1,062,495,000

Alberta $815,399,934 $744,218,123 9.6% $420,190,858 $286,983,814 Manitoba $226,421,322 $223,106,573 1.5% $117,983,251 $63,867,131 NW Territories $16,408,656 $15,938,061 3.0% $8,377,435 $5,968,981 Saskatchewan $198,091,408 $190,496,230 4.0% $102,579,597 $64,810,979 Yukon $8,972,199 $8,396,456 6.9% $4,756,354 $2,909,987 WCLC Total $1,265,293,519 $1,182,155,443 7.0% $653,887,495 $424,540,892

New Brunswick $297,237,457 $302,942,911 -1.9% n/a $120,140,000 Newfoundland & Labrador $351,966,349 $337,921,289 4.2% n/a $114,149,000 Nova Scotia $327,770,551 $344,487,047 -4.9% n/a $112,761,000 Prince Edward Island $64,142,774 $65,295,806 -1.8% n/a $15,645,000 ALC Total $1,041,117,132 $1,050,647,052 -0.9% $364,454,369 $362,695,000

Total Canada $9,453,279,129 $9,288,077,495 1.8% $4,352,036,262 $3,008,965,794

July 21-25, 2014 • Sheraton Myrtle Beach Convention Center Hotel • Myrtle Beach, SC • Hosted by South Carolina Educational Lottery

The Seminar fosters: • Communication within the industry • Networking opportunities • Education through real-world problem solving • Product examples and opportunities • Case-study presentations • Candid conversations

More Information coming soon 92 INSIGHTS November/December 2013

Third Quarter 2013 Calendar Sales By Product

Jurisdiction Instant Pulltab/Breakopen 3 Digit Q3-2012 Q3-2013 Q3-2012 Q3-2013 Q3-2012 Q3-2013

Arizona $97.07 $106.14 $0.81 $1.01 $2.08 $2.18 Arkansas $79.57 $75.50 $1.52 $1.51 California $692.03 $702.50 $33.80 $33.11 Colorado $86.20 $86.90 $2.30 Connecticut $155.71 $161.83 $30.10 $33.28 Delaware $11.07 $12.18 $6.07 $5.98 District of Columbia $13.96 $13.56 $12.88 $12.01 Florida $641.30 $753.29 $77.34 $82.42 Georgia $611.84 $629.21 $118.33 $116.62 Idaho $25.67 $28.16 $5.32 $5.25 $0.49 $0.45 Illinois $414.33 $426.28 $67.06 $63.03 Indiana $138.28 $168.53 $1.39 $7.56 $7.97 Iowa $47.56 $45.00 $4.43 $4.04 $1.76 $1.69 Kansas $29.50 $29.90 $2.60 $2.40 $1.40 $1.40 Kentucky $122.59 $123.59 $31.81 $30.93 Louisiana $35.82 $41.28 $11.95 $12.27 Maine $40.00 $42.70 $1.31 $1.32 Maryland $118.55 $110.06 $61.68 $60.15 Massachusetts $785.00 $785.00 $0.33 $0.26 Michigan $183.58 $208.36 $6.67 $7.73 $78.41 $80.25 Minnesota $90.68 $89.34 $3.46 $3.46 Missouri $172.96 $182.97 $16.09 $17.23 Montana $4.19 $3.90 Nebraska $18.78 $19.96 $0.89 $1.01 New Hampshire $47.76 $46.14 $1.31 $1.24 New Jersey $347.83 $359.06 $107.20 $110.64 New Mexico $16.57 $16.41 $0.83 $0.91 New York $912.26 $884.68 $210.84 $212.90 North Carolina $224.52 $272.70 $60.16 $63.78 North Dakota Ohio $345.26 $317.49 $84.83 $83.52 Oklahoma $21.20 $20.32 $1.08 $1.08 Oregon $28.10 $26.00 Pennsylvania $530.57 $568.84 $86.29 $82.12 Puerto Rico $14.86 $37.27 Rhode Island $20.40 $20.01 $0.02 $0.01 South Carolina $185.22 $204.41 $34.65 $36.59 South Dakota $5.75 $6.71 Tennessee $248.34 $266.87 $13.72 $14.32 Texas $740.68 $772.95 $67.56 $66.08 Vermont $18.07 $17.70 $0.35 $0.34 Virginia $201.20 $224.37 $59.45 $65.03 Washington $83.86 $90.25 $4.06 $4.11 West Virginia $26.96 $27.68 $2.01 $2.12 Wisconsin $74.78 $79.39 $0.81 $0.51 $5.83 $5.99 Total(USD) $8,695.57 $9,082.98 $22.38 $21.21 $1,306.16 $1,358.61

Atlantic $45.30 $50.10 $31.75 $33.67 British Columbia $44.94 $55.14 $7.94 $8.01 Loto-Quebec $111.09 $129.35 $4.04 $4.31 Ontario $204.94 $206.82 $3.02 $7.38 $15.77 $15.62 Western Canada $52.46 $55.43 $5.61 $6.10 Total(CAD) $458.73 $496.84 $42.71 $49.06 $25.42 $26.03 INSIGHTS November/December 2013 93

Third Quarter 2013 Calendar Sales By Product

Jurisdiction 4 Digit 5 Digit Lotto Q3-2012 Q3-2013 Q3-2012 Q3-2013 Q3-2012 Q3-2013

Arizona $7.79 $8.00 Arkansas $0.79 $0.89 California $7.30 $6.79 $95.97 $77.84 Colorado $7.50 $7.60 Connecticut $24.52 $27.74 $5.59 $6.08 Delaware $4.59 $4.66 $0.22 $0.21 District of Columbia $15.56 $14.36 $4.00 $4.04 Florida $58.64 $60.03 $69.37 $69.50 $86.74 $95.12 Georgia $48.98 $51.36 $2.40 $2.47 Idaho Illinois $46.89 $46.41 $22.54 $24.27 Indiana $7.48 $7.66 $1.01 $3.12 $11.28 $12.70 Iowa $0.70 $0.77 Kansas Kentucky $9.52 $9.40 $1.56 $1.48 Louisiana $9.52 $9.41 $6.39 $7.70 Maine $1.10 $1.10 $4.01 $3.06 Maryland $66.31 $65.67 $7.99 $6.91 Massachusetts $79.70 $78.50 $17.00 $17.40 $5.70 $4.90 Michigan $84.99 $88.85 $10.73 $16.08 Minnesota Missouri $8.25 $9.10 $10.12 $6.67 $5.47 $6.66 Montana Nebraska $2.58 $2.69 New Hampshire $1.15 $1.17 $2.41 $2.00 New Jersey $64.45 $67.29 $16.53 $16.95 New Mexico $1.71 $1.80 New York $196.02 $203.74 $27.00 $23.41 North Carolina $23.78 $26.97 $16.23 $17.60 North Dakota Ohio $48.61 $45.76 $5.27 $6.66 $9.20 Oklahoma $0.45 $0.40 $1.03 $1.06 Oregon $0.33 $0.34 $7.07 $7.72 Pennsylvania $60.04 $57.71 $10.41 $10.44 $23.22 $39.18 Puerto Rico $35.06 $23.38 Rhode Island $6.15 $6.02 South Carolina $16.85 $17.31 $5.25 $4.46 $3.26 South Dakota $0.60 $0.54 Tennessee $6.82 $7.42 Texas $19.47 $20.79 $15.82 $14.50 $39.14 $39.16 Vermont $0.33 $0.30 $1.50 $1.55 Virginia $53.16 $59.61 $6.85 $7.49 Washington $2.95 $2.96 $5.54 $6.44 $9.87 $10.28 West Virginia $1.18 $1.25 Wisconsin $3.00 $3.00 $5.89 $6.75 $4.50 $3.03 Total(USD) $979.58 $1,039.80 $178.12 $180.61 $422.88 $451.55

Atlantic $0.37 $0.38 British Columbia $12.14 $11.80 Loto-Quebec $6.47 $7.38 $45.98 $47.08 Ontario $12.58 $13.06 $22.65 $24.07 Western Canada $0.84 $0.00 Total(CAD) $20.26 $20.82 $0.00 $0.00 $80.77 $82.95 94 INSIGHTS November/December 2013

Third Quarter 2013 Calendar Sales By Product

Jurisdiction Spiel/Kicker Cash Lotto Multi-Jurisdiction(other than PB or MM) Q3-2012 Q3-2013 Q3-2012 Q3-2013 Q3-2012 Q3-2013

Arizona $3.76 $4.82 Arkansas $0.99 $1.72 $0.92 $0.62 California $40.48 $38.40 Colorado $5.20 $4.80 Connecticut $8.21 $8.13 $8.48 $7.00 Delaware $1.06 $0.99 $0.62 $0.77 District of Columbia $0.62 $0.78 Florida $21.33 $19.19 Georgia $24.85 $26.49 $6.28 $5.46 Idaho $0.65 $0.75 $1.18 $1.38 Illinois $36.08 $36.28 Indiana $2.95 Iowa $1.14 $1.11 $2.36 $2.72 Kansas $4.30 $3.60 $1.90 $2.30 Kentucky $2.57 $2.56 Louisiana Maine $1.66 $2.07 $0.46 $0.49 Maryland $5.43 $4.97 Massachusetts $11.30 $8.20 Michigan $13.13 $12.45 Minnesota $7.30 $7.50 $2.10 $3.29 Missouri Montana $0.77 $0.85 $1.19 $1.30 Nebraska $0.42 $0.42 $0.46 $0.48 New Hampshire $2.41 $0.66 $0.82 New Jersey $31.41 $35.43 New Mexico $1.15 $1.37 New York $73.82 $71.83 North Carolina North Dakota $1.79 $2.11 Ohio $1.21 $1.45 $13.99 $15.00 Oklahoma $1.57 $2.13 Oregon $1.22 $1.19 Pennsylvania $46.43 $39.88 Puerto Rico Rhode Island $0.97 $1.53 $2.58 $1.90 South Carolina South Dakota $1.25 $1.39 Tennessee $5.09 $4.38 $3.45 Texas $15.39 $13.75 Vermont $0.69 $0.25 $0.21 $0.25 Virginia $7.51 $6.95 Washington West Virginia $1.29 $1.32 $1.03 $1.37 Wisconsin $6.14 $6.23 Total(USD) $1.21 $4.40 $388.64 $380.63 $42.75 $46.20

Atlantic $13.69 $12.39 $47.57 $43.46 British Columbia $12.98 $11.49 $88.30 $73.80 Loto-Quebec $35.29 $31.86 $175.57 $148.11 Ontario $46.52 $42.07 $376.21 $340.20 Western Canada $28.28 $26.53 $12.43 $23.93 $171.95 $143.87 Total(CAD) $136.76 $124.34 $12.43 $23.93 $859.60 $749.44 INSIGHTS November/December 2013 95

Third Quarter 2013 Calendar Sales By Product

Jurisdiction Power Ball Mega Millions Keno Q3-2012 Q3-2013 Q3-2012 Q3-2013 Q3-2012 Q3-2013

Arizona $29.98 $39.07 $8.47 $8.05 Arkansas $10.30 $12.77 $3.80 $3.47 California $177.24 $103.41 $77.72 $31.84 $45.24 Colorado $25.00 $29.80 $6.10 $5.80 Connecticut $24.00 $29.74 $6.47 $6.05 Delaware $8.02 $9.91 $1.99 $2.07 District of Columbia $4.62 $5.12 $1.73 $1.57 $3.07 $2.73 Florida $149.86 $158.53 $26.04 Georgia $36.92 $48.07 $24.44 $23.47 $43.10 $44.19 Idaho $10.58 $12.23 $2.65 $2.28 Illinois $50.48 $63.47 $29.66 $26.23 Indiana $30.23 $37.72 $7.52 $6.66 Iowa $14.38 $21.13 $4.02 $3.30 Kansas $11.10 $13.90 $2.80 $2.60 $5.10 $4.60 Kentucky $24.31 $27.26 $7.22 $7.06 Louisiana $27.81 $35.62 $7.72 $6.75 Maine $5.90 $7.33 $1.28 $1.05 Maryland $27.83 $37.19 $18.46 $17.55 $85.60 $76.19 Massachusetts $27.80 $41.50 $13.60 $13.00 $192.70 $194.70 Michigan $36.17 $49.11 $27.70 $25.82 $130.92 $131.92 Minnesota $24.69 $28.81 $4.20 $3.94 Missouri $27.28 $35.63 $7.48 $6.64 $15.10 $14.93 Montana $4.57 $5.08 $0.99 $0.86 Nebraska $11.19 $13.21 $2.53 $2.39 New Hampshire $9.97 $12.69 $2.36 $2.21 New Jersey $67.88 $93.88 $36.78 $36.86 New Mexico $9.98 $11.80 $2.18 $1.99 New York $117.01 $154.39 $69.49 $66.89 $136.84 $156.93 North Carolina $44.64 $52.22 $14.44 $13.30 North Dakota $3.59 $4.22 $0.88 $0.83 Ohio $33.83 $46.15 $28.08 $24.67 $58.97 $64.00 Oklahoma $16.05 $20.89 $4.35 $4.13 Oregon $12.20 $16.19 $3.31 $3.28 $22.45 $21.92 Pennsylvania $90.85 $113.28 $21.66 $22.99 Puerto Rico Rhode Island $9.35 $10.91 $2.15 $1.96 $19.59 $19.05 South Carolina $26.70 $30.75 $8.75 $8.12 South Dakota $4.88 $5.64 $0.82 $0.78 Tennessee $28.97 $34.41 $8.60 $7.60 Texas $59.86 $93.15 $37.39 $37.29 Vermont $2.69 $3.21 $0.78 $0.70 Virginia $29.90 $35.87 $23.33 $27.33 Washington $14.31 $20.86 $9.06 $9.16 $1.35 $1.43 West Virginia $10.79 $13.13 $2.54 $2.23 $1.40 $1.26 Wisconsin $24.03 $31.69 $5.78 $5.47 Total(USD) $1,240.50 $1,744.77 $576.97 $558.16 $748.03 $779.09

Atlantic $2.97 $3.09 British Columbia $53.88 $55.25 Loto-Quebec $34.03 $37.98 Ontario $21.09 $20.73 Western Canada Total(CAD) $0.00 $0.00 $0.00 $0.00 $111.97 $117.05 96 INSIGHTS November/December 2013

Third Quarter 2013 Calendar Sales By Product

Jurisdiction VLT Other Sports Q3-2012 Q3-2013 Q3-2012 Q3-2013 Q3-2012 Q3-2013

Arizona $1.59 $2.42 Arkansas $1.54 $2.78 California $3.54 $3.33 Colorado Connecticut $0.55 $0.67 Delaware $102.90 $92.02 $17.84 $13.61 $5.17 $7.00 District of Columbia $3.55 $4.86 Florida $2.65 Georgia Idaho $0.22 Illinois $5.76 Indiana $7.26 $8.69 Iowa Kansas $0.70 $0.70 Kentucky $3.30 $2.29 Louisiana $2.94 $2.96 Maine Maryland $135.56 $419.88 $35.42 $41.19 Massachusetts Michigan $0.00 $0.85 Minnesota $1.52 $1.80 Missouri $1.10 $0.80 Montana $1.08 $1.01 $0.04 $0.03 Nebraska New Hampshire $0.23 $0.33 New Jersey New Mexico $0.17 $0.18 New York $466.52 $493.77 $7.45 $7.23 North Carolina North Dakota Ohio $12.80 $35.01 $10.90 $21.23 Oklahoma Oregon $177.50 $183.63 $0.45 $0.40 Pennsylvania $2.57 $2.17 Puerto Rico $0.51 Rhode Island $132.29 $132.47 $0.33 South Carolina South Dakota $138.10 $142.25 Tennessee Texas $7.45 $5.02 Vermont $0.22 $0.54 Virginia $3.14 $4.83 Washington West Virginia $277.00 $251.00 $19.32 $14.50 Wisconsin $0.83 $0.45 Total(USD) $1,442.67 $1,750.03 $137.64 $151.33 $5.21 $7.03

Atlantic $97.82 $96.10 $16.52 $16.59 $6.40 $6.57 British Columbia $7.58 $7.09 $8.54 $8.37 Loto-Quebec $248.29 $260.34 $15.23 $17.92 $8.82 $10.19 Ontario $38.85 $40.26 $49.86 $55.59 Western Canada $2.14 $2.28 $15.78 $16.39 Total(CAD) $346.11 $356.44 $80.32 $84.14 $89.40 $97.11 INSIGHTS November/December 2013 97

Third Quarter 2013 Calendar Sales By Product

Jurisdiction Bingo Total Q3-2012 Q3-2013 Q3-2012 Q3-2013

Arizona $151.55 $171.69 Arkansas $99.43 $99.26 California $1,008.37 $1,162.17 Colorado $130.00 $137.20 Connecticut $263.63 $280.52 Delaware $159.55 $149.40 District of Columbia $59.99 $59.03 Florida $1,107.23 $1,264.12 Georgia $917.14 $947.34 Idaho $46.54 $50.72 Illinois $667.04 $691.73 Indiana $212.01 $256.00 Iowa $76.35 $79.76 Kansas $59.40 $61.40 Kentucky $202.88 $204.57 Louisiana $102.15 $115.99 Maine $55.72 $59.12 Maryland $562.83 $839.76 Massachusetts $1,133.13 $1,143.46 Michigan $572.30 $621.42 Minnesota $133.95 $138.14 Missouri $263.85 $280.63 Montana $12.83 $13.03 Nebraska $36.85 $40.16 New Hampshire $65.85 $69.01 New Jersey $672.08 $720.11 New Mexico $32.59 $34.46 New York $2,217.25 $2,275.77 North Carolina $383.77 $446.57 North Dakota $6.26 $7.16 Ohio $652.95 $660.94 Oklahoma $45.73 $50.01 Oregon $252.63 $260.67 Pennsylvania $872.04 $936.61 Puerto Rico $0.00 $111.08 Rhode Island $0.27 $193.83 $194.13 South Carolina $277.42 $304.90 South Dakota $151.40 $157.31 Tennessee $311.54 $338.45 Texas $1,002.76 $1,062.69 Vermont $24.84 $24.84 Virginia $384.54 $431.48 Washington $131.00 $145.49 West Virginia $343.52 $315.86 Wisconsin $131.59 $142.51 Total(USD) $0.00 $0.27 $16,188.31 $17,556.67

Atlantic $262.39 $262.35 British Columbia $72.99 $309.29 $230.95 Loto-Quebec $9.94 $10.59 $694.75 $705.11 Ontario $17.93 $10.11 $809.42 $775.91 Western Canada $289.49 $274.53 Total(CAD) $100.86 $20.70 $2,365.34 $2,248.85 98 INSIGHTS November/December 2013

Welcome to the NASPL Matrix

NRI

NASPL recently launched and announced its informational website www.nasplmatrix.org

The “Matrix” is the most recent achievement “It is the perfect description of what the association’s new website offers,” said NASPL Vice President of Operations in the association’s information and research Andrew White. “The entire effort is a direct result of past mandate. NASPL strategic planning sessions. As a group we realized that the information needed to be collected efficiently, dis- In 2009 NASPL began to collect its sales data through a new- seminated, and shared in a faster manner. I’m really excited ly created online data site. Each quarter, lottery represen- about sharing this with the industry.” tatives tasked with supplying sales data were asked to add information into the database. After input, the information There are four areas available on the Matrix. is then reviewed, approved, and offered in compilation within “Insights” magazine and the annual “NASPL Resource • Awards Index.” • Presentations • Research “The Matrix is the result of planning and hard work,” said • Webinars NASPL Executive Director David Gale. “Without the support and commitment of the membership this newest offering The site is password protected. To take advantage of these wouldn’t be possible.” new features, interested professionals are required to contact NASPL headquarters. A username and password will be You may not know that the term “Matrix” means: created and distributed.

“Something within or from which something else originates, For more information contact NASPL Headquarters at 440- develops, or takes form.” Merriam Webster Dictionary. 466-5630 or contact Andrew White at [email protected] INSIGHTS November/December 2013 99

Awards Research

Presentations Webinars

Awards In past years, NASPL offered a DVD series to advertising agencies and their respective lotteries. Now the association’s award entries are entered and uploaded via a special website. The result is an ability to review every award entered from the NASPL Annual Conference within days of the event ending. Each awards category winner, the finalists, and entries are all housed on this site. The high- light is that each entry can be quickly downloaded directly to a users computer.

Presentations Wish you could review every presentation the association has collected from NASPL Conferences? Want that inspiring PowerPoint? Now it can be obtained. Each electronic presentation can be viewed and downloaded.

Research Research is now searchable via the NASPL Matrix. Sort, review, and download the most current sales NRI information available in Excel or PDF formats. Quarterly and Annual Fiscal sales from the NASPL research database can be obtained from this site quickly and easily. Waiting for up to date information is now in the past with this latest electronic query option.

Webinars NASPL will release monthly webinars from past speakers and presenters that participated in its educational events. If attendees missed a popular speaker or want to share what they learned with other staff members the website now offers the capability. 100 INSIGHTS September/October 2013 Save the Dates!

September 30 - October 3, 2014 NASPL ‘14 Hosted by New Jersey Lottery Atlantic City, New Jersey

NASPL EVENTS OTHER EVENTS

April 6 - 11, 2014 November 18 - 22, 2013 August 19 - 22, 2014 Asia Pacific Lottery Association National Conference of State NASPL ’14 Lottery Leadership APLA 2013 Annual Regional Legislatures 20th Anniversary Conference NCLS Legislative Summit Embassy Suites Downtown St. Louis Chiang Mai, Thailand Minneapolis, MN St. Louis, MO Shangri-La Hotel Hosted by the Missouri Lottery November 2 - 5, 2014 December 3 - 6, 2013 World Lottery Summit 2014 LaFleur’s 2013 Lottery Conclave World Lottery Association (WLA) May 18 - 21, 2014 San Francisco, CA and European Lotteries (EL) NASPL iGaming/Design Rome, Italy NEW! Symposium January 10 - 12, 2014 Cavalier Convention Hotel Location: TBD National Council of Legislators from Gaming States (NCLGS) June 7 - 11, 2015 2014 Winter Meetings European Lotteries (EL) June 17 - 20, 2014 Florida 2015 EL Congress NASPL ’14 Spring Directors Meeting & Dialogue Oslo, Norway July 11 - 12, 2014 Wentworth by the Sea Marriott Hotel National Council on Problem Portsmouth, NH Gambling (NCPG) Hosted by the New Hampshire Lottery 28th National Conference on Problem Gambling Orlando, FL July 21 - 25, 2014 NASPL ’14 Professional Development Seminar Sheraton Myrtle Beach Convention Center Hotel Myrtle Beach, SC Hosted by South Carolina Education Lottery

September 30 - October 3, 2014 NASPL ’14 Atlantic City, New Jersey Hosted by New Jersey Lottery INSIGHTS September/October 2013 101

NASPL Associate Membership Become a NASPL Associate Member!

“An Associate Membership is a way for your For More Information Contact: organization to be ‘at the table’ to hear about Jake Coy Vendor Relations the key issues affecting our Industry and how we [email protected] 440.466.5630 can better service and grow our industry.” www.naspl.org