New Hampshire Lottery Commission
June 26, 2008
Meeting Minutes:
NEW HAMPSHIRE LOTTERY® COMMISSION
14 INTEGRA DRIVE, CONCORD, NEW HAMPSHIRE 03301
MINUTES OF COMMISSION MEETING
THURSDAY, JUNE 26, 2008 9:30 AM
PRESENT:
Richard J. Campbell, Jr., Chairperson
Paul J. Holloway, Commissioner
Arthur P. Klemm, Jr., Commissioner
Rick Wisler, Executive Director
Diane Campbell, Administrative Assistant I
Georges Roy, Administrator III
Robert Preston, Games Manager
Maura McCann, Programs Information Officer
Rose Longo-White, Griffin, York & Krause, Inc.
Patrick Griffin, Griffin, York & Krause, Inc.
Travis York, Griffin, York & Krause, Inc.
Moe Pepin, SGI
Liz Dimmick, SGI
Doug Parker, SGI
Charlie Scannella, MDI
Alan Lyman, SGI
Curtis Barry, The Dupont Group
Commissioner Campbell called the meeting to order at 9:40 a.m.
1. ACCEPTANCE AND SIGNING OF PREVIOUS MINUTES:
Commissioner Klemm made a motion, seconded by Commissioner Holloway, to approve the May, 2008 commission meeting minutes. So voted, unanimous.
2. FENWAY GROUP PRESENTATION:
Patrick Griffin of Griffin, York, & Krause stated that the Senior Vice President of the Fenway Licensing Group had contacted him late yesterday to express his regrets that unfortunately he would be unable to attend the commission meeting.. He respectfully requested the commission’s approval that the presentation be placed as an item on the July 16th Commission meeting agenda.
3. DISCUSSION OF NEW LEGISLATION FOR MULTI-STATE GAME PROMOTIONS:
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Director Wisler stated proposed new legislation had been drafted in response to the Joint Legislative Committee on Administrative Rules (JLCAR) recent rules petition. The petition requested that the Lottery develop a law change that would exempt the lottery from rulemaking authority and JLCAR approval for promotions connected with Multi-State Lottery Association game rules. After review, Commissioner Holloway made a motion, seconded by Commissioner Klemm, to approve the language for the proposed legislation for Multi-State game promotions. So voted, unanimous.
4. TRI-STATE REPORT:
Commissioner Campbell gave an update from the most recent Tri-State Commission meeting. The Tri-State Commission approved the Tri-State budgets for Maine, New Hampshire and Vermont. The Product Development Committee suggested a Pick 3/Pick 4 Promotion titled Double Draw Dollars to run from July 13-July 26 which was approved by the Tri-State Commission.
Commissioner Holloway inquired about the process and timeframes involved before the release of the Weekly Grand ticket. Maura McCann, Programs Information Officer, updated the Commission on the process used and the status of the launch of the upcoming Weekly Grand ticket, projected to release in November. Moe Pepin and Doug Parker of Scientific Games International (SGI) also responded with additional details on this subject. The Tri-State directors have reviewed and provided their input for proposed changes/replacement to the Megabucks game. Following Megabucks will be enhancements to the Pick 3/Pick 4 game.
Commissioner Campbell announced that Tom Scala of the Vermont Lottery was voted as the new Tri-State Commission chairperson, effective July 1, 2008. The next Tri-State Commission meeting will be held on July 11, 2008, at the New Hampshire Lottery.
Commissioner Holloway initiated a discussion on the report of Tri-State budgeted sales projections for Fiscal Year 2009. Commissioner Campbell stated the Tri-State Commission approves the Tri-State fiscal year budget. Director Wisler stated each state establishes its own sales projections. New Hampshire’s sales projections were based on the current fiscal year sales trend in New Hampshire and that is why it was forecasted as the same sales trend, not taking into account any possible game changes that may take effect next year. Director Wisler stated it was hopeful that changes will be made to the Megabucks and Paychecks game. Director Wisler stated he was uncertain of Maine and Vermont’s process they used to determine their own state’s sales projections.
Doug Parker stated Liz Dimmick of SGI had prepared a per terminal sales report comparison for Maine, New Hampshire and Vermont as requested by the Commission at their last Commission meeting. The report covered on-line and instant game sales for the months of
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March and April. Ms. Dimmick stated that March Powerball sales per terminal for New Hampshire was $1,170; $680 for Maine; and $450 for Vermont. These sales resulted during a Powerball jackpot run ranging from $153 million up to $275 million. The instant ticket sales per terminal for March in New Hampshire were $2,716; Maine at $2,928. Ms. Dimmick stated the difference between the two instant totals could be that Maine records the instant sale when the book is delivered as compared to New Hampshire recording the sale when the book is settled.
Doug Parker stated that New Hampshire per capita sales were higher than the other two states. The report indicated that New Hampshire sales benefits on a regular basis more than Maine and Vermont sales from a Powerball jackpot run.
Ms. Dimmick stated 51% of the Tri-States Megabucks sales were allocated to Maine; 43% of all Powerball sales for Tri-State were allocated to New Hampshire. During the discussion, it was discovered that a correction to the report was needed for the final analysis. This will be corrected and presented to the Commission next month.
Director Wisler stated the Lottery was striving to open new retailers and place additional terminals at retailer locations. New Hampshire ranks approximately 6th highest in instant sales in the country and approximately 7th in the world.
Robert Preston stated there was an increased number of store closings from July, 07 through May 08, most likely due to economic trends, over half of them located in rural areas or northern New Hampshire. A discussion was held regarding handling collections on delinquent accounts. Bond coverage requirements for retailers were discussed. A review will be done and the results will be presented to the Commission.
Commissioner Klemm requested that the Commission review the Tri-State budget projections for New Hampshire next year before Tri-State Commission approval. Commissioner Campbell agreed that next April these will be presented to the Commission.
5. ADVERTISING:
Maura McCann stated the advertising budget was being reviewed for the next fiscal year and the plan will be presented to the Commission at the July meeting. The over $1 billion to Education television spots have been filmed at Danville Elementary School. The three spots were presented to the Commission for their review and will also be provided to the Governor for his review.
Patrick Griffin of Griffin, York & Krause discussed the proposed media schedule and possible conflicts with airing the “Over $1 billion” television spots resulting from the primary and general elections.
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Travis York reported that 6,909 Replay members responded (10% of the active members) to a survey on the Replay site during a two week period which was a wonderful participation. Approximately 62% of the respondents were females. About half of the people who responded play Replay every week; 85% play at least once a month. Mr. York stated over half of the people like the monthly Replay prizes the most. 22%-36% of Replay members claim they spend more dollars on lottery products as a result of Replay, an increase of about 18%. Mr. York stated some of the goals will be to better brand the bonus point promotions to encourage multiple plays and to encourage Replay members to purchase subscriptions by possibly offering Replay points.
Patrick Griffin discussed different types of loyalty programs offered in other states, such as Michigan. Mr. Griffin stated it appeared that the Replay program may be responsible for approximately 2-5% of keeping sales going.
6. OTHER BUSINESS:
Georges Roy, Administrator III, presented the Tri-State financial report for May, 2008. The budget appears to be in fine shape, expecting an estimated lapse of $700,000 in FY 2008.
A discussion was held on the commission bonus offered to the retailers. Rick Wisler recommended to the Commission offering a 10% additional sales goal for retailers for the next quarter, instead of the previous 12%, due to the current challenging economic trends.
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to approve the 10% sales goal for retailers, with the condition that the program pays for itself. So voted, unanimous.
7. NEXT MEETING:
Commissioner Campbell made a motion, seconded by Commissioner Klemm, to schedule a Commission meeting for July 16, 2008 at 10:00 a.m. So voted, unanimous.
Commissioner Klemm made a motion, seconded by Commissioner Campbell, to adjourn the commission meeting at 11:45 a.m. and move into executive session to discuss a personnel matter. So voted, unanimous. No commission votes were taken during the executive session which concluded at 12:15 p.m.
Richard J. Campbell, Jr., Chairperson
Paul J. Holloway, Commissioner
Arthur P. Klemm, Jr., Commissioner