Massachusetts State Lottery Commission Meeting

Massachusetts State Lottery Commission Meeting

Massachusetts State Lottery Commission Meeting Executive Director’s Report Delivered by: Michael R. Sweeney June 23, 2020 Virginia Lottery to start selling tickets online this July By WHSV newsroom, Jun 15, 2020 • Beginning July 1, Virginia Lottery will be launching an iLottery platform. • Play MegaMillions, Powerball, Cash4Life and new instant-win games on any phone, tablet or computer • Virginia Lottery Executive Director Kevin Hall: “We feel it’s important to continue to meet Virginia consumers where they already are, and where they expect to find us: online.” • The new online option offers a social distancing-friendly, remote way to play. • “Online lottery is not just convenience. Updating the way we deliver our products will help support our responsibility to generate additional resources for Virginia’s K-12 public schools.” 2 Weekly Sales Since March 1 All Games Instant Tickets Keno $115 $110 $105 $100 $95 $90 $85 $80 $75 $70 Sales $65 $60 (in millions) $55 $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Week Ending 3 Mega Millions Sales Comparison 2019 2020 $3,000,000 $530 $2,750,000 $2,500,000 $2,250,000 $475 Advertised Jackpot amount (in millions) $444 $2,000,000 $1,750,000 Sales $1,500,000 $418 $393 $410 $367 $1,250,000 $339 $316 $295 $378 $1,000,000 $252 $273 $356 $336 $313 $750,000 $298 $266 $274 $231 $248 $500,000 $200 $215 $250,000 $0 Drawing Dates (2020) 4 Current Lottery Operations • Beginning Wednesday, June 24: o Braintree, Dorchester, New Bedford and Worcester claim centers will be open for prize claims of $5,000 to $99,999 in the following manner: . Each day will be limited to prize claims by individuals whose last names begin with designated letters of the alphabet o Springfield and Woburn offices will be processing claims of $5,000 to $99,999 by appointment only. • Processing prize claims of $100,000 and above by appointment • Processing mail-in prize claims (up to $50,000) • Extending expiration date for tickets due to expire between March 19 and September 29, 2020 to September 30, 2020 • Essential personnel (Computer Operations, Security, Drawing staff) • Distribution: split shifts Monday through Friday • Telecommuting for all employees who are able to work from home 5 Processing Prize Claims 5000 4500 Since March 22, more than 4000 8,600 prize claims totaling 3500 $72 million have been processed. 3000 Number of 2500 claims processed 2000 1500 1000 500 0 Week Ending 6 Warehouse/Distribution April 336,078 Books of Instant Tickets shipped: May 532,356 June 1-15 216,114 7 Claim Center Signage Dorchester New Bedford 8 Social Media 9 Lottery Sales Update – May • Overall unadjusted sales for May of 2020 were down $56.5 million from May 2019. Figures for the month of May 2020 • Estimated May 2020 net profit and prize payout figures do not include accruals for prizes won that have not yet been paid. o Due to the overall decrease in sales, and in-person prize claims limited to prizes of $10,000 and above by appointment only (reducing the amount of prizes over $600 being claimed and cashed): . Estimated net profit for May 2020 was $112.9 million compared to $119.4 million in May 2019, resulting in an estimated $6.5 million decrease in net profit. Estimated prize payout for May 2020 was 68.99 percent, as compared to 70.53 percent in May 2019. Figures for Fiscal Year 2020 • Our estimated FY20 year-to-date net profit and prize payout figures both include accruals for prizes won that have not yet been paid. o Due to a combined $185.1 million decrease in overall sales in the months of April and May and a combined $137.7 million decrease in Mega Millions and Powerball sales in the first eleven months of FY20 compared to the first eleven months of FY19 (Mega Millions: $76.8 million decrease, Powerball: $60.9 million decrease) as a result of smaller jackpots: . Our estimated year-to-date net profit for the first eleven months of FY20 is $924.9 million compared to $1.045 billion for the first eleven months of FY19. After adding a 1-day average net profit figure of $2.8 million due to a shift in the calendar that resulted in 1 less day being included in the net profit figure for the first eleven months of FY20, the adjusted year-over-year change for the first eleven months of FY20 vs. the first eleven months of FY19 is an estimated $117.3 million decrease in net profit. Our estimated year-to-date prize payout for the first eleven months of FY20 is 73.44 percent, as compared to 72.17 percent for the first eleven months of FY19. May 2020 sales breakdown With the exception of the Numbers Game ($2.5 million increase), all products experienced sales decreases in May of 2020 compared to May of 2019 • Compared to May of 2019, Keno sales were down $35.0 million, Instant Ticket sales were down $12.1 million, Powerball sales were down $6.5 million (high jackpot of $127.3 million compared to $327.3 million in May 2019), Mega Millions sales were down $4.5 million (high jackpot of $336 million compared to $444 million in May 2019), Mass Cash sales were down $238,700, Lucky for Life sales were down $237,380, Megabucks Doubler sales were down $235,045 (high jackpot of $1.8 million compared to $2.4 million in May 2019), and All or Nothing sales were down $201,241. 10 5 Year Comparison Prize Payout as a % of Sales Through May 2020 (May 2020 Estimated) 77.0% 76.1% 76.0% 75.2% 75.0% 74.7% 73.9% 74.0% 73.9% 73.9% 74.0% 73.7% 73.8% 73.8% 73.8% 73.6% 73.9% 73.7% 73.6% 73.6% 73.5% 73.3% 73.3% 73.5% 73.4% 73.2% 73.4% 73.4% 72.8% 73.1% 73.0% 73.1% 72.9% 73.3% 73.2% 73.0% 73.0% FY20 72.6% 72.4% 72.3% FY19 72.3% 72.0% 72.3% 72.4% 72.3% 71.9% 72.2% FY18 72.0% 72.0% % 71.7% 71.6% 71.6% 72.0% FY17 71.5% 71.9% 71.4% 72.0% 71.2% 71.2% 71.4% 71.4% 71.6% FY16 71.4% 71.0% 71.0% 70.1% 70.0% 69.0% 68.0% 67.0% July-P1 Aug-P2 Sept-P3 Oct-P4 Nov-P5 Dec-P6 Jan-P7 Feb-P8 Mar-P9 Apr-P10 May-P11 June-P12 Period 11 May Sales MSLC Gross Sales Results MAY FY20 vs. FY19 Unadjusted Non Fiscal Year ($ millions) Through May 30, 2020 FY20 % of Total FY19 % of Total $ Change % Change Instant Tickets $352.9 73.5% $365.0 68.0% -$12.1 -3.3% Mega Millions $8.6 1.8% $13.1 2.4% -$4.5 -34.3% Powerball $5.0 1.0% $11.5 2.1% -$6.5 -56.3% Keno $67.3 14.0% $102.3 19.1% -$35.0 -34.2% Mass Cash $8.4 1.7% $8.6 1.6% -$0.2 -2.8% All or Nothing $0.6 0.1% $0.8 0.1% -$0.2 -26.0% Lucky for Life $2.1 0.4% $2.3 0.4% -$0.2 -10.2% Numbers Game $33.9 7.1% $31.4 5.9% $2.5 8.0% Megabucks Doubler $1.4 0.3% $1.6 0.3% -$0.2 -14.5% Total $480.2 100.0% $536.7 100.0% -$56.5 -10.5% Instant Tickets $352.9 73.5% $365.0 68.0% -$12.1 -3.3% Draw Games $59.4 12.4% $68.6 12.8% -$9.2 -13.4% Monitor Games $67.9 14.1% $103.1 19.2% -$35.2 -34.2% Total $480.2 100.0% $536.7 100.0% -$56.5 -10.5% Unadjusted Month Month 4/28/19-6/1/19 5 weeks 35 days 12 FY 2020 Sales through May MSLC Gross Sales Results YEAR-TO-DATE FY20 vs. FY19 Unadjusted Non Fiscal Year ($ millions) Through May 30, 2020 FY20 % of Total FY19 % of Total $ Change % Change Instant Tickets $3,326.2 69.3% $3,380.3 66.9% -$54.1 -1.6% Mega Millions $68.9 1.4% $145.7 2.9% -$76.8 -52.7% Powerball $66.2 1.4% $127.0 2.5% -$60.9 -47.9% Keno $916.7 19.1% $972.9 19.3% -$56.2 -5.8% Mass Cash $80.8 1.7% $81.7 1.6% -$0.9 -1.1% All or Nothing $6.9 0.1% $8.3 0.2% -$1.4 -17.3% Lucky for Life $21.4 0.4% $22.5 0.4% -$1.1 -4.9% Numbers Game $296.5 6.2% $299.9 5.9% -$3.4 -1.1% Megabucks Doubler $18.2 0.4% $15.4 0.3% $2.8 17.9% Total $4,801.6 100.0% $5,053.8 100.0% -$252.1 -5.0% Instant Tickets $3,326.2 69.3% $3,380.3 66.9% -$54.1 -1.6% Draw Games $551.9 11.5% $692.2 13.7% -$140.3 -20.3% Monitor Games $923.5 19.2% $981.2 19.4% -$57.7 -5.9% Total $4,801.6 100.0% $5,053.8 100.0% -$252.1 -5.0% Unadjusted Year Year 7/1/18-6/1/19 48 weeks 336 days 13 Recent News Stories “New retail habits from Coronavirus ‘ingrained’ in shoppers” By Hannah Miller, CNBC, June 11, 2020 • Consumers will stick to shopping habits developed during the pandemic • Going towards online and curbside pickup • Preference for contactless payment methods will continue -Hal Lawton, CEO Tractor Supply Company 14 Recent News Stories 48% of restaurants nationwide that had to close because of C-19 believe their closure will now be permanent.

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