Employee Newsletter GAZETTE Winter 2016 MANAGEMENT TEAM CHANGES AS AGENCY EVOLVES

worked nearly 35 years with DDB New York and spent 22 years leading DDB’s account with the New York . “I’m just a guy who loves the industry and who loves marketing,” Leo said. “I’ve always admired Maryland during my years in this field.”

FY 2016 STRATEGIC PRIORITIES

• Continuing to grow instant ticket sales to better match their share of the agency’s revenue to the industry standard. Jim Nielsen (left) and Leo Mamorsky have joined the senior • Expanding the Lottery’s retail base by management team. 10 percent, or 500 retailers. our Central Monitoring HAVE YOU MET the two newest members of our • Implementing and Control System Request for senior management team? Say hello to Jim Nielsen Proposals (RFP) and conversion. The and Leo Mamorsky! state released the request Dec. 10 Our colleagues from the Big Apple are working with and an in-house team will review the us on our four top priorities for Fiscal Year 2016. proposals. Bids are due on March 3. Jim has 30 years of Lottery industry experience in the • Successfully opening the state’s public and private sector. He worked in leadership posi- sixth casino, MGM National Harbor, in tions for the New York State Gaming Commission, New September 2016. York Lottery, and GTECH (now IGT). He is spearheading the Central Monitoring and Control System RFP initiative. “The goal is to get state- of-the-art equipment,” Jim said. “We’re hoping for three good bids.” Leo is managing our marketing, promotional and product development operations and will oversee the recruitment, hiring and training of our future chief marketing officer. The advertising industry veteran has

TABLE OF CONTENTS

Awards and Honors 3 Kickoff 6-7 Employee Fun Facts 9 Holiday Party Photos 10 FRENZY! See page 2 for details. LEADERSHIP TEAM POWERBALL FEVER HITS REORGANIZES MARYLAND!

Many directors’ reporting lines changed during the winter reorganization announced by Director Gordon Medenica. Check out the new organizational structure:

GINA SMITH, deputy director, chief finance officer Richard Chavis, project manager Patricia Dorsey, director, Customer Resource Center Bob Howells, director of procurement Jeff Patchen, chief information officer Nate Warfield, director of human resources Paula Yocum, controller

JIM NIELSEN, chief operating officer Terry Bolden, director of facilities operations Leonard Dorsey, director of agent administration John Gallagher, director of contract management Charles LaBoy, managing director of gaming Director Gordon Medenica responds to a news reporter’s John Mooney, managing director of regulatory oversight questions during a Powerball jackpot interview.

LEO MAMORSKY, transitional managing director; THE $1.6 BILLION POWERBALL jackpot that chief marketing officer set a world record kept everyone at the agency Jill Baer, director of creative services hopping from Nov. 5, when it began rolling, until Shirley Hinton, assistant director of communications, Jan. 13 when players in three states bought promotions and events; also reports to Carole Everett winning tickets. Jason Snapkoski, director of product development Public frenzy and media coverage grew as the jackpot reached unprecedented levels. CAROLE EVERETT, director of communications; “We’re in uncharted waters,” Director public information officer Gordon Medenica told the Sales team at its monthly meeting. JOHN MARTIN, managing director; chief revenue officer Julianne Grim, director of analysis and reporting The effects of the rolling jackpot reached Mike Hofferbert, director of retail recruitment every department on the Lottery side of the Al Ringgold, director of sales agency, from Sales to the Customer Resource Center. Maryland saw five $1 million winners and 50 $50,000 Powerball winners created MARIE TOROSINO, executive associate in drawings from Nov. 5-Jan. 13 and the Communications team is interviewing them all! JACKIE VINCENT, managing director of policy and planning Gordon and members of the Communications team handled 57 TV, radio and print media interviews in January alone to promote daily SEND US YOUR NEWS! game sales that spiked at $14 million on Jan. 13. Sales for the Jan. 13 draw cycle, which began SHARE YOUR good news, Jan. 10, hit $27.4 million at 10 p.m. your milestones and fun photos in the Gazette. Email deborah.mcdaniel- [email protected] in Communications.

2 CONGRATULATIONS!

ROUND OF APPLAUSE DISTRICT MANAGER HONORS AWARDS

DECEMBER 2ND QUARTER SALES AWARD Winner Mary Drexler, responsible coordinator, with Gordon Medenica, director. Congrats to Vivian Bell, who earned District Manager of the Quarter honors for the 2nd quarter of FY 2016. She works with retailers in Region 3, Territory 30.

WELCOME NEW EMPLOYEES

NOVEMBER-JANUARY

• Rodney Berry, regional manager, Region 4, Sales, effective Jan. 6. • Leo Mamorsky, transitional managing director JANUARY and chief marketing officer, effective Dec. 8. • James “Jim” Nielson, chief operating officer, Winner Jennifer Nash, Security. effective Nov. 30. • Sarah Proctor, district manager, Territory 32, Sales, effective Dec. 9. • Shamika Veney, district manager, Territory 18, Sales, effective Dec. 9.

HR ACHIEVES CERTIFICATION

OUR HUMAN RESOURCES team has achieved Maryland state certification! Team members Nate Warfield, director; Aimee Ringgold, assistant director; and Bavan Smith, human resources specialist, completed the core FEBRUARY competency testing certification required for state Winner Tyrone Williams, Sales. HR employees.

3 SALES REORGANIZES TO MEET GOALS

THE SALES DIVISION kicked off the New Year with an extensive reorganization in place and a renewed push to grow and improve game sales and the retailer network. You’ve probably seen the construction taking place to convert the Communications’ storage room beside the Sales area into formal offices. Many staffers have already switched cubicles in the Sales and Creative Services areas of the building due to the reorganization. John Martin, managing director, chief revenue officer, relocated to a temporary office in Sales. - Director of corporate sales. The person hired to He’ll move into his new office once construction is fill this new position, which will be advertised soon, complete. Under the reorganization, John’s direct will focus on marketing the sales of Lottery products reports and their responsibilities are: to corporate chain headquarters.

- Al Ringgold, director of sales In two other organizational changes: - Tom Slevin, corporate accounts manager, - Mike Hofferbert is now director of retail Sales, now reports to Jennifer Wetherell, recruitment. His primary responsibility is director of electronic gaming device operations, expanding the network of more than 4,560 Gaming. He has moved to the Gaming side and retailers by another 500 stores or locations. still focuses on ITLMs at veterans’ organizations. The corporate sales team (Sam Coscia, Patti Connor and Zina Howard) will report to him - Fred Masterson, Sales support manager, in their new roles as business development now supervises the Merchandising team and managers. David Browne, Sales administrative aide. Merchandising team members are: - Julianne Grim, director of analysis and • Jonathan D’Alessio, merchandising reporting. She will supply the staff with improved manager; Anissa Carter and Charles metrics and analytics. Howard Benjamin, sales Johnson. They will continue to manage analyst, now reports to her. self-service vending machine contracts and merchandising equipment requests in addition to warehouse inventory and the SalesMaker program.

SCRATCH-OFFS ACHIEVE 40-YEAR MILESTONE

HAPPY ANNIVERSARY to our scratch-off lovers! Forty years ago, on Feb. 10, the agency launched the state’s first scratch-off to the delight of our first core group of loyal players. The success of that $1 Instant Lottery game and the scratch-offs that followed continues to be important to the state of Maryland. Scratch-offs generate much-needed revenue to benefit the state’s good causes. In Fiscal Year 2015, for example, scratch-off sales reached $546.1 million. The design of instant tickets has evolved over the years, with an increasing assortment of sizes, facings and price points. All now carry barcodes. Some instant tickets are printed on recycled paper using special inks and many offer extended-play opportunities. They all have a loyal following, as retailers know.

4 NEWS OF NOTE GENERAL ASSEMBLY BACK IN SESSION

THE MARYLAND General Assembly’s 436th legislative session is under way and the governor has submitted his proposed Fiscal Year 2017 operating and capital budgets. Lawmakers will review and act on more than 2,500 bills during the 2016 session. James Butler, director of legislative and policy affairs, is monitoring legislative proposals that could impact agency operations. Check the next issue of the Gazette newsletter for an update on the status of the ML&G proposed legislation.

MARK YOUR CALENDARS DID YOU KNOW?

• APP ROUNDUP GOES LIVE – A multi-app landing page is live on mdlottery.com! Featuring all three of our mobile apps, the page is accessible at mdlottery.com/mobile-apps. The page features the MD Lottery app, My Lottery Rewards app and Keno app. Thanks to our web, digital media and new media group for this effort to benefit players!

The agency will close for these holidays: • HR REVISES ORIENTATION – The Human Resources team is revising the New Employee • Monday, Feb. 15 – Presidents’ Day Orientation program. • Monday, May 30 – Memorial Day The changes are designed to make the program more informative and better structured to help new • Monday, July 4 – Independence Day staff members get up to speed on the agency and the Lottery industry.

HAPPY 10th BIRTHDAY, MULTI-MATCH!

CAN YOU BELIEVE IT? Our popular in-state jackpot game, Multi-Match, turned 10 years old this year. Feb. 2, 2006 marked the first day of sales. Each $2 game gives players four ways to match and win. The probability of winning is 1 in 8.5, and winning is just what our players keep doing! Check out our largest Multi-Match jackpot winners:

• $4.8 million – Sept. 19, 2009 • $3.6 million – June 8, 2015 • $4.45 million – March 18, 2010 • $3 million – Nov. 1, 2008 • $3.8 million – Dec. 16, 2010

5 CASH4LIFE KICK-OFF

GAME LAUNCH HIGHLIGHTS

ADVERTISING BLANKETS THE STATE – GAME KITS CREATED – Creative Services worked with agency vendors To help retailers successfully to develop and schedule a broadcast and radio launch the game, the campaign spanning two months along with so- Creative Services team and cial media, website and point-of-sale initiatives. our creative agency devel- Did you see the groundhog Cash4Life graphic oped game kits that went to that popped up on the website each time you retailers in early January. The launched mdlottery.com? kits included information “This represents the most aggressive market- explaining the game and its sales procedures as well as ing launch of a game in Maryland Lottery point-of-sale items to display in Lottery retailers. history,” said Leo Mamorsky, transitional man- aging director and chief marketing officer. Keep GEORGIA JOINS GAME – Tennessee signed up in an eye our for our outdoor advertising, which November and Georgia now plans to join the Cash4Life will run for more than two months, as well as multistate game this spring. Other participating states are buses wrapped with Cash4Life images. New York, New Jersey, Pennsylvania and Virginia.

MONEY MACHINE DEBUTS – On Jan. 28, SORRY, WE CANNOT PLAY – In case co-workers or the Communications team showcased the members of the public ask, agency employees ARE NOT agency’s Cash4Life Money Machine at ALLOWED to play Cash4Life. We can, however, go to halftime of the Maryland Terps vs. Iowa any of the 18 states that offer the similar Hawkeyes basketball game. Read more on game and play that, instead. page 7.

PSST! WHO’S THAT SUPER FURRY EMPLOYEE?

HAVE YOU SEEN a brown, furry, buck- toothed employee wandering the halls? He – or possibly she – attended the November Sales Meeting, strolled around Towson on Groundhog Day and cavorted at the Jan. 28 Cash4Life kickoff event at the Maryland Terps vs. Iowa Buckeyes mens’ basketball game. The big question everyone is asking? “What’s the groundhog’s name?” Well, we didn’t know so we conducted a naming contest on the Lottery’s Facebook page and are anxiously awaiting the results. Our giant mascot promotes the Our Cash4Life mascot poses with Communications’ Doug Lloyd. Cash4Life game along with a team that dons “Cashanova” suits decorated with currency. Learn more about our mascot in the Employee Fun Facts They tell folks about how winning $1,000 a section of this issue of the Gazette. If you see our friend day, day after day after day, is like living in a roaming the halls, give him or her a pat on the back for doing wonderful cash-filled Groundhog Day movie. a great job in all kinds of weather!

6 CASH4LIFE KICK-OFF Promotion at Terps Basketball Game a Huge Success!

WE TURNED OUT in force Jan. 28 at the Maryland Terps vs. Iowa Buckeyes basketball game, bringing Lottery luck to the home team and fun and games to fans. Our team promoted the new Cash4Life game during the Terps victory over Iowa. Fans received entry forms for a chance to get into our money machine at halftime. Rachel Grafman, a senior studying civil engineering, won $1,100 after grabbing 11 pieces of fake money during her 30 seconds in the machine. Four runners-up took home $550 each. Other fans enjoyed spinning our prize wheel for giveaways and posing with our “Cashanova” team and our new mascot. Everyone had a great time and left with big smiles! Thanks to all who helped make the event a glorious success.

7 RESPONSIBLE GAMBLING UPDATE AGENCY ACHIEVES LEVEL 2 CERTIFICATION

CONGRATULATIONS to everyone who worked on the Level 2 responsible gaming certification application for the World Lottery Association (WLA). We did it! The official certificate arrived in late January and is on display in the reception area at Lottery headquarters. To achieve Level 2 certification, the staff completed an extensive self-assessment of how well we meet the international organization’s responsible gaming principles and what actions are needed to fully comply. The team is now working on the application for Level 3 certification. This level requires us to develop a plan, timetable and budget to implement responsible gaming programs. We have a three-year window to apply for Mary Drexler, responsible this next level of certification and our goal is to submit the documentation by gambling program coordinator, spring 2018. Stay tuned! displays the framed certificate.

MARCH: CELEBRATE RESPONSIBLE GAMBLING MONTH

IN RECOGNITION OF the National Council on Problem Gambling’s annual campaign, the agency is again designating March as Maryland’s Responsible Gambling and Problem Gambling Awareness month. Re- sources for information on the problem and pathology of compulsive gambling are available at ncpgambling.org.

NEITHER SNOW, NOR HAIL ... RESEARCH UPDATE

WHILE THE HISTORIC blizzard of 2016 kept most of us at Mary Drexler, responsible gambling home, a “thumbs up” goes out to our dedicated co-workers who program coordinator, offers two articles to braved the storm to keep the Lottery going. increase your knowledge of responsible Kudos to Sean Evans and Margaret Bannister on the Infor- gambling research findings. mation Technology team along with Drawings Manager Patrick Morton. They worked the weekend of the blizzard to ensure the • “Assessing the Effectiveness of a drawings went on as scheduled. And, on Tuesday when offices Responsible Gambling Behavioral reopened, the Customer Re- Feedback Tool for Reducing the source Center team carpooled Gambling Expenditure of At-risk to work so winners could claim Players” www.tandfonline.com/doi/full/ their prizes! 10.1080/14459795.2015.1049191 James Butler, director of legislative and policy affairs, • “Responsible Gambling Training in was scheduled to accompany Ontario Casinos: Employees’ Attitudes agency leaders to Annapolis and Experience” for a committee hearing. He www.tandfonline.com/doi/abs/10.1080 hitchhiked — in suit and tie — /14459795.2015.1056206 across the city, catching rides with two kind motorists and arrived at Lottery headquarters James Butler, director of legislative in time to drive south. and policy affairs, was determined Way to go, everyone! to get to work on time for a hearing. 8 EMPLOYEE FUN FACTS

Latrice Allen Administrative specialist, Agent Administration Childhood hometown: Baltimore Dream vacation: Italy Hobbies: Spending time with my son and hanging out with friends Favorite restaurant: Stanford Grill in Columbia Favorite TV show: “Snapped” Favorite food: Fried chicken Favorite sport: Basketball Kids: Troy, 12 Something you would be surprised to know about me: I have two little sisters who are 17 and 18 years younger than I am. Year started at ML&G: 2013

My Name Is? ML&G mascot Childhood hometown: Baltimore Dream vacation: Punxsutawney, Pa. Hobbies: Food tasting, gardening and landscaping, hibernating Favorite movie / TV show: “Groundhog Day” / “Dig” series Favorite foods: Alfalfa, lettuce and melons Favorite book: “Mr. Groundhog Wants the Day Off” by Pat Stemper Vojta. Kids / Grandkids: 30 adult kids / 162 grandchildren Something you would be surprised to know about me: I was painfully shy and quiet when young but now I love meeting people – especially when it involves food. Year started at ML&G: 2015

Debbie McDaniel-Shaughney Senor communications manager, Communications Childhood hometown: York, Pa. Dream vacation: Touring Ireland and Scotland Hobbies: Gardening and kayaking Favorite movie / TV show: “Elf” / “Quantico” Favorite sport: College men’s basketball (Go University of Kentucky!) Favorite book: “The Art of Racing in the Rain” by Garth Stein Kids / pets: Jennifer, 24; Mary, 22; English Springer Spaniel Calypso, cats Meko and Kylie Something you would be surprised to know about me: I built and flew a remote controlled airplane as a hobby for several years and it NEVER crashed! Year started at MLGCA: 2013

9 HOLIDAY PARTY PACKED WITH GOODIES

WINNERS THANKS, JUDGES!

WHAT A GREAT TIME we had at the Holiday Party. Our Homemade Holiday Dessert Bake-off filled an entire table with delicious goodness. The judges selected at the event had their work cut out for them – literally! Santa’s helpers placed samples of each entry on plates so all the judges had to do was taste and score entries. The winners were: Mary Drexler with Baklava, first place;Gina Smith with Reese’s Peanut Butter Cupcakes, second place, and Gail Pelovitz with Pumpkin Cheesecake, third place. Other bake-off participants were Leo Mamorsky, John Martin, Debbie McDaniel- Shaughney, Erica Palmisano, Marie Torosino, Donna Williams and Tyrone Williams. Thanks to all who participated!

10