This document is made available electronically by the Minnesota Legislative Reference Library as part of an ongoing digital archiving project. http://www.leg.state.mn.us/lrl/lrl.asp Fiscal year 1998 was a new, different and fun-to-play year of great change for the demands of players. Minnesota State Lottery, its We were also successful retailers and our loyal play­ in implementing higher ers. The enormity of the task retailer commissions. Our of installing a new computer retailers are deserving of this system, new terminals for our higher compensation for instant-only retailers, a new their fine efforts. As we move player hotline, one entirely into the last year of the mil­ new on-line game and two lennium, we are committed on-line game re-launches in to innovation, even better one year was daunting. It service and large doses of the required an all-out effort by things we sell - fun and staff and retailers. Thanks to entertainment. these efforts, sales rebound­ The Lottery is enormous­ ed, new excitement was gen­ ly popular two-thirds of erated and we had a great Minnesota's adults play. We year. are grateful for the support, To sustain player appeal, for your confidence and for the Lottery must always keep the privilege of working with an eye on play style, prefer­ you for the benefit of our ences, themes and service. great state of Minnesota. The technical aspects - from software to printing - can be Very truly yours, overwhelming, but teamwork makes it happen. Powerball set a new world record. Gopher 5 re-established its solid "Minnesota's Own" Director cash game position. New instant games fulfilledthe Highlights When the clock struck received a big boost from enue. The most notable midnightjune 30, signaling numbers games sales, which prizes were a $5 million the end of fiscal year 1998, totaled $113.1 million, up 18 Powerball jackpot won in one thing percent August 1997 and a $14.9 mil­ was certain: from the lion Powerball cash jackpot The year previous won in March. was a busy year. More A major vendor change and exciting specifically, punctuated the fiscal year for one for the Powerball the Lottery. At the end of Minnesota was rede- June, the Lottery hired a new State Actor Earl Schuman, 82, starred in signed and advertising agency, Lottery, its the Lottery's TV commercial that sales soared, Minneapolis-based Foley introduced Cash4Life. players and fueled in Sackett. Foley Sackett has 35 retailers. There was some- part by a $195 million jack- employees and accounts that thing foreveryone - two pot in May. include Excelsior-Henderson Powerball jackpot winners, a Hefty sales are always Motorcycle Manufacturing new $1,000-a-week-for-life good news for the state of Co., Leeann Chin Chinese four-digit game, major Minnesota, and this year was Cuisine, Cargill, American improvements to Powerball no exception. The Lottery Express and Blue Cross Blue and Gopher 5, the introduc­ contributed $87.5 million to Shield of Minnesota. Its con­ tion of a record 25 instant the state in fiscal year 1998. tract expires Sept. 1, 2001. games and a world record Those dollars benefit the $195 million Powerball jack­ Environment and Natural oorn@rnowrnrn pot. Resources Trust Fund, the JAN 2 9 1999 But the highlight that state General Fund and com­ LEGISLATIVE REF.Ettt,'-vt. uHRARY stands out most is a credit to pulsive gambling treatment Bitl.�,Ur.�f!P�nru��e May I6����ackpot at the retailers that sell Lottery programs. $175 million. tickets statewide. Sales for fis­ The news was equally cal year 1998 were $372.9 good for players, who cashed million, the second highest in in on $225 million in prizes, Lottery history. Overall sales or 60 percent of Lottery rev- Beneficiaries Lottery proceeds mean River, reduce pollution and Environment and Natural new environmental projects. mercury levels in lakes and Resources Trust Fund, which Some of the projects are streams, set aside land for receives 40 percent of impressive and popular struc­ wildlife and natural habitat, Lottery proceeds. In fiscal tures like the visitors year 1998, the Lottery centers at Gooseberry contributed $24. 7 mil­ Falls and Fort lion to the trust fund Snelling state parks. for a total of $199 Others are heavily million since Lottery used, like boat ramps, start-up. (The trust fishing piers and fund also receives a many miles of recre­ portion of the ational trails that unclaimed prize meander throughout The visitor center at Fort Snelling State Park pool.) received $638,000 from the trust fund and is a scenic portions of the shining example of how Lottery proceeds are The other 60 per­ making Minnesota a better place. state. Still others are cent of Lottery pro­ less visible but critical to pre- and improve fish habitat and ceeds goes to the state serving the state's natural hatcheries. General Fund, which resources, such as measures Since 1990, Lottery pro­ finances programs like K-12 to clean up the Minnesota ceeds have been used to education, public safety, finance more than 130 pro­ health and human services, The trust fund finances a statewide survey of rare native jects worth $82 million. Most and aid to local governments. plants and animals, like the Lapland Buttercup. of the projects have had far­ In fiscal year 1998, the reaching benefits. In fact, General Fund received $61.4 Lottery proceeds have been million from the Lottery; that spent across Minnesota to included a 6.5 percent in­ preserve, restore and lieu-of-sales tax and a portion enhance the state's environ­ of unclaimed prizes. ment. The Lottery also con­ The Lottery funds these tributed $1.4 million to the projects through the state Department of Human Fiscal Year '97 ------- Prizes 60.1 % Services forcompulsive gam­ Dollar Distribution $224 million bling treatment programs. -- General Fund 17.2% Since start-up, compulsive $64 million gambling funding has totaled - Environment & Natural $ 1 Res. Trust Fund 6. 7% 6.2 million throughjune 30, � 1998. $25 million Administration 11.0% _______._ 1 $41 million �_..:;;:;_______ Retailers 5.1% $19 million .----� --------, Fiscal Year '98 ------- Prizes 60.0% Dollar Distribution $225 million -- General Fund 16.4% $61.4 million 1 Environ. & Nat. Res. Trust Fund 6.6% =._J $24.7 million �� // Compulsive Gambling 0.3% -�1 $1.4 million Administration 11.0% _____._ 1 $41 million -�-----Retailers 5.7% $21.5 million A campground and recreational trail were developed at Glendalough State Park with $392,300 from the trust fund. Games In the annals of Leading the Lottery history, fis­ charge was Power­ cal year 1998 will ball, which was go down as the Year redesigned and re­ of the Numbers launched Nov. 2. Game Launch. In The new Powerball the span of five gives players the months, the Lottery choice of collecting launched a new the jackpot over 25 daily multi-state years or in one drawings game lump-sum payment called Cash4Life, that amounts to redesigned and re- the case in Minnesota, about half of the launched Powerball and instant games were by far advertised jackpot. The Gopher 5, and retired anoth­ the most popular choice game's overall odds of win­ er daily multi-state drawings for Lottery players, total­ ning stayed the same, at 1 in game, Daily Millions. ing $259.8 million, or 70 35, with the odds of winning The Lottery also launched percent of overall sales. the jackpot increasing to 1 in 25 new instant games - 18 $1 Instant sales were down 4 80 million. On the other end games, five $2 games and two percent from fiscal year of the prize structure, the $5 games - more than any 1997 but were the third small prizes increased and other year. And as is always highest yearly total in two are now easier to win. Lottery history. sale�::�:: ��::_s �f)1Q1@I®�D matic increase dur- It could happen. ing fiscal year 1998. Sales totaled $113.1 mil- The $1, $2 and $5 prizes are lion, an 18 percent now $3, $4 and $ 7. increase over the previous The new odds were year. designed to build larger jack- pots and greater sales. It Two percent of sales were worked. In May, the jackpot shared between two daily rolled to $195 million. With multi-state games. Cash4Life the help of that mega-jackpot, started March 30 and finished the year with $4.2 mil­ lion in sales. It replaced Daily Cas� Life Millions, which was retired March 30 Minnesota's Powerball sales with fiscal year 1998 sales of. were up 34 percent over the $5 .1 million. previous year, totaling $71.3 Daily 3, a perennial million, or 19 percent of total steady performer, registered sales. sales of $12.9 million, or Gopher 5 was redesigned 4 percent of sales. Jan. 31 and, like Powerball, its odds were increased to build larger jackpots. But the changes also included new prize levels with the addition of a Bonus Ball. Players can now win $5,000 and $100 in addition to $10, $250 and the jackpot, which still starts at $100,000 and rolls until someone wins. Gopher 5 sales ended the year at a steady $19.6 million. Players andWinners Lottery winners across checks worth $250,000, he when it gets up to $20 mil­ the state collected $225 mil­ gave up his milk route to lion or $30 million. On [that] lion in prizes during fiscal spend more time farming Friday, I said, 'What the year 1998. The most notable and enjoying his were Verndale's Charlie family.