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Celebrating the Gold in New York the New York Lottery, the Nation’S Largest, Is Celebrating Its 50Th Anniversary in 2017, Showcasing 50 Years of Innovation

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Celebrating the Gold in New York the New York Lottery, the Nation’S Largest, Is Celebrating Its 50Th Anniversary in 2017, Showcasing 50 Years of Innovation GATEWAY TO LEADERSHIP BEING PREPARED MONEY LEFT ON THE TABLE The Official Publication of the North American Association of State & Provincial Lotteries INSIGHTS May/June 2017 Celebrating the Gold in New York The New York Lottery, the nation’s largest, is celebrating its 50th anniversary in 2017, showcasing 50 years of innovation. FROM THE PRESIDENT NASPL Staff David B. Gale Executive Director Thomas Tulloch Director of Administration Red Rover, Red Rover Andrew White VP of Operations Leveling the Playing Field Across the Globe Tamika Ligon Director of Program Planning John Koenig Graphic Designer hen lottery colleagues chat One example is Lottoland which offers Janine Hutzell Accounting about barriers to creativity or our products across jurisdictional lines using “biggest challenges,” the topic of online marketing and technologies, Patricia McQueen Editor W regulation is invariably belabored. On one including a website and games that mimic Jake Coy Vendor Relations hand, regulations necessitate more proverbial those of jurisdictional lotteries. Lottoland “red tape” and require us to innovate ranks as one of the top two gaming Mike Duff NSI Coordinator “inside the box.” While acknowledging this companies by FT 100, which ranks Europe’s challenge, we also appreciate that regulation fastest-growing companies. Paul Corey I.T. / Software Development is the consumer’s friend. It ensures a set of Clearly, these “secondary” lotteries standards and expectations of fairness have represent a collective threat to the been met in a business where trust is the most regulated industry, so let’s play a global NASPL Executive Committee valuable asset. game of Red Rover! Let NASPL and Herein lies the double-edged threat illegal WLA link our hands to prevent them Rose Hudson President lotteries pose to legitimate lotteries and their from entering our jurisdictions, first by Charlie McIntyre First Vice-President customers alike. Illegal lotteries don’t play by legally holding them accountable to the the same rules and thus unjustly compete to regulatory requirements of our jurisdictions Alice Garland Second Vice-President divert profits away from worthy causes while and putting their business models to the leaving consumers without legal protection or test in our courts. On a broader scale, we Dennis Berg Treasurer recourse. To add further injury, illegal lotteries can also pursue trademark infringement Bishop Woosley Secretary operate at our expense, impinging upon our suits on our games. resources and intellectual property. Finally, we should insist that while May Scheve Reardon Immediate Past President As with many industry trends, North players participate in commerce online, Kevin Gass Pres. Interprovincial Lotteries America can look to our international they do not “reside” there; technology cohorts to spot such threats and enact swift can prove that every customer falls within Carole Hedinger Region I Director responses. Recently, the World Lottery a jurisdiction and is subject to the rules Paula Otto Region II Director Association introduced the Global Lottery therein. Sports Monitoring and Betting System to Domain Name Servers (DNS) blocking Sarah Taylor Region III Director address match-fixing and illegal sports known illegal operators may be one Angela Wong Region IV Director betting that have afflicted Europe and Asia. enforcement method. Another involves Even with efforts to protect game security utilizing the recently introduced .lotto and integrity, the illegal gaming community domain as an internet namespace reserved continues to exploit new technology and exclusively for official, state-sanctioned legal loopholes. WLA President Jean-Luc lotteries that users can trust. Moner-Banet expertly outlined the threat Our industry possesses the knowledge, at PGRI Smart Tech 2017 with a caveat and experience and leadership to ensure a level INSIGHTS call to action. The tactics of these so-called global lottery playing field where the rules “secondary” lotteries know no borders as they are followed and players don’t get “hurt.” Circulation: have begun targeting our multistate games Let’s come together to make it happen; our Insights ISSN 1528-123X, Powerball and Mega Millions. beneficiaries are counting on us. May/June 2017, Here’s how they work: A private operator Volume No. Seventeen, Issue Three. receives a remote gaming license from a low- Published bi-monthly by NASPL tax domicile. The operator offers fixed-odds (North American Association betting on state-authorized lottery products of State and Provincial Lotteries) across jurisdictional lines by piggybacking on the results of those games, thereby also 7470 Auburn Road, LL1 taking advantage of the intellectual property Rose Hudson Concord, OH 44077 of those regulated lotteries. Insurance is NASPL President purchased to protect against the possibility of President and CEO, © 2017 All rights reserved. a high jackpot win. Louisiana Lottery Corporation NASPL Email: [email protected] Web Sites: www.naspl.org / www.nasplmatrix.org P. 440.361.7962 2 INSIGHTS MAY/JUNE 2017 F. 440.867.2327 SG_EnhancedPartnershipAd_40_8.25x10.75.pdf 1 4/20/17 11:26 AM MORE C M Y CM MY CY CMY K Scientic Games’ Enhanced Partnership accounts outperform the industry average in weekly per capita instant game sales by 40% When you look at the U.S. Lotteries that have partnered with Scientic Games to manage sales of their instant game, those Lotteries enjoy weekly per capita sales that are 40% higher than the industry average. is has a real impact on our customers’ bottom line, enabling them to contribute even more to the good causes they support. Because Real Counts MAY/JUNE 2017 INSIGHTS 3 © 2017 Scientific Games Corporation. All Rights Reserved. INSIGHTSINSIGHTS November/December March/April 20162017 3 CONTENTS MAY/JUNE ISSUE 38 6 58 Around the Industry Being Prepared 12 Industry news and updates. Lotteries must never take lightly the possibility that a disaster may occur 12 – natural or otherwise – to disrupt Research Corner their business. 12 Rebooting Cash4Life in New York By Patricia McQueen By Dana Idema, Director of Advertising, New York Lottery 64 Money Left on the Table 22 Despite lotteries’ best efforts, Making a Difference: players will sometimes fail to claim Foster Krupa, Senior Director Product prizes that are rightfully theirs, 58 Innovation, Northstar New Jersey and many states require that the unclaimed prize fund is returned to 30 players in other ways. Shouldn’t There be a Measurement for By Patricia McQueen That? By Stephen Wade, Principal, Lottery BEING Management Consulting, LLC PREPARED 38 Gateway to Leadership NASPL’s Lottery Leadership Institute was held in St. Louis in early April. By Patricia McQueen 64 46 Celebrating the Gold in New York The New York Lottery’s 50 years have provided more than $61 billion for education in the state, and it remains the country’s largest lottery, now delivering more than $3 billion in profits annually. By Patricia McQueen 4 INSIGHTS MAY/JUNE 2017 DO YOU KNOW THESE PEOPLE? Do you know their emotions? Their needs? What drives them? You need to. They’re the key to growing your lottery business. Which is why you need to read the new whitepaper from IGT’s Insights360 team: “Beyond Hope: Engaging Player Emotions.” Download at www.IGT.com/LotteryBlog © 2017 IGT Global Solutions Corporation. The trademarks used herein are owned by IGT or its affiliates, may not be used without permission, and where indicated with a ®, are registered in the U.S. IGT is committed to socially responsible gaming. Our business solutions empower customers to choose parameters and practices that become the foundation of their Responsible Gaming programs. MAY/JUNE 2017 INSIGHTS 5 Around the Industry “Essentially a lottery is in the business of possibilities,” Garland said. “Lottery games offer prizes that deliver some joy Education Lottery gives and thrill to winners. Along the way, the dreams that fuel the fun North Carolinians a chance raise millions for education. And • New instant ticket printing the money raised for education and warehousing system. to “Dream a little” helps the dreams of students Instant tickets are the most and educators across our state popular lottery games and the come true.” new system should make the The N.C. Education Lottery is showing a new look Garland said new equipment ordering and distribution of and the new look will position instant tickets more efficient. to North Carolina as it refreshes and rebrands for the lottery for continued success another decade of service to the state. in raising money for education • A ticket checker or a lottery during a new decade of service. vending machine with a ticket he introduction of the new look, shown in a statewide It now raises more than half checking function at all retail advertising campaign that began in mid-May, came a billion a year for the state locations. This allows players to Tin conjunction with the installation of all new lottery with total contributions since check and see for themselves if equipment, from the centralized operating system to point-of- the start of the lottery in 2006 they have a winning ticket. sale terminals and vending machines in all 6,850 lottery retail crossing the $5 billion milestone locations. as of March 31st. • New play centers at all retail The ad introduces the new brand logo following a series of locations. The play centers will scenes of reflection capturing every day people’s dreams – a The new lottery system features: make it easier for players to scuba diving vacation, a son remodeling his mom’s kitchen, get information about lottery and a student graduating from college. The lottery’s new logo • New lottery terminals or lottery games, odds of winning, and keeps the familiar mountains to the sea scene, graced with a vending machines at all lottery prizes. shooting star, but it now has evolved into a dreaming look with retail locations. The equipment its first tagline: “Dream a little.” has large user-friendly touch Players will see more Alice Garland, executive director of the lottery, said when screens and a faster printer.
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