Tri-State Lotto Commission
June 6, 2008
Meeting Minutes:
TRI-STATE LOTTO COMMISSION
Lake Morey Resort
Fairlee, VT
JUNE 6, 2008
Present: Richard J. Campbell, New Hampshire Lottery Commission
Thomas Scala, Vermont Lottery Commission
Orland McPherson, Maine State Lottery
Rick Wisler, New Hampshire Lottery Commission
Alan R. Yandow, Vermont Lottery Commission
Rich Sperlazzi, Maine State Lottery
Maura McCann, New Hampshire Lottery Commission
Robert Preston, New Hampshire Lottery Commission
Kassie Strong, New Hampshire Lottery Commission
Mary Cassani, Vermont Lottery Commission
Hadley Melendy, Vermont Lottery Commission
Liz Dimmick, Scientific Games
Diane Connell, Scientific Games
Darrell Frecker, Scientific Games
Doug Parker, Scientific Games
Karl Fortman, Scientific Games
Moe Pepin, Scientific Games
Russ Leonard, NL Partners
Jennifer Cartnell, NL Partners
John Ripley, NL Partners
The meeting was called to order by Chair Campbell at 9:30 a.m.
ACCEPTANCE OF MAY 2, 2008 MINUTES
A motion was made by Commissioner McPherson to accept the May 2, 2008 minutes with a correction to Paycheck sales. Motion was seconded and voted in the affirmative.
FINANCE COMMITTEE REPORT – Mary Cassani
There was a review of the April 2008 financials. Gross revenues through April have increased $4,006,923, or 7.05% compared to last year. Of this increase, Megabucks sales are up $2,720,582, or 10.2%; Daily Numbers sales are down $1,223,821, or 6.15%; Paycheck sales are down slightly from the combined Triple Play and Paycheck sales from last year $63,425, or 0.90%; the Promotional Fast Play games are down $137,544, or 4.29%.
Net Profit increased from last year $1,040,447, or 5.37%.
Comparing budget through April, sales are ahead of forecast $3,115,990. Megabucks is performing considerably better than expected due to the extended jackpot roll. Due to increased sales, cost of sales is over budget by $1,933,607. All three states have under spent their operating budgets this year by a total of $1,002,254. The three states combined have under spent advertising budgets a total of $918,776.
The contingency funds are in the positive except for the Fast Play games, and expired, unclaimed prizes are closing in on $1.7 million.
The proposed FY09 Budget was reviewed. Each state provided individual estimates of sales and advertising expenses, plus state specific items including draw entry, Battelle consulting and site visits for the upcoming RFP process. Other shared expenses were estimated based on previous year’s actual expenses. The Finance Committee requested Commission approval of the proposed budget.
MOTION
A motion was made by Commissioner McPherson to accept the proposed FY09 budget. Motion was seconded and voted in the affirmative.
The Finance Committee met briefly yesterday to go over year-end procedures for closing the books, which will be done Monday, June 30th.
Plans are to go out to bid this fall for Auditing services as we are in our fourth year with Berry, Dunn, McNeil and Parker.
MARKETING COMMITTEE – Maura McCann
The press clip report was distributed.
PRODUCT DEVELOPMENT COMMITTEE – Maura McCann
The committee met yesterday.
The final business plan for the Pick 3 and Pick 4 Double Draw Dollars promotion was distributed. We are trying to move some people that play just the evening draw for Pick 3 and Pick 4 over to the day draw and, hopefully, they will continue to play both draws. This promotion will run from July 13 to 26, 2008. The states have requested the following dollar amounts from the expired, unclaimed prize fund: Maine $70,000; New Hampshire $70,000; and Vermont $50,000.
Recommendation: The Product Development Committee requests the use of $190,000 from the expired, unclaimed prize fund for the above-mentioned Double Draw Dollars promotion to the daily/evening Pick 3 and Pick 4 games.
MOTION
A motion was made by Commissioner Campbell to authorize the use of $190,000 from the expired, unclaimed prize fund for the Double Draw Dollars promotion to the daily/evening Pick 3 and Pick 4 games. Motion was seconded and voted in the affirmative.
Yesterday the committee further discussed the Tri-State Weekly Grand game. The draft business plan was distributed. It is a $2 price point with a top prize of $1,000 a week over 20 years. There will be a cash option offered. The players will choose four numbers from a field of 1 – 35 and one additional number from a field of 1 – 35. There is drawing equipment available for this drawing. There will be an instant win as part of this game whereby every 30th ticket sold statewide will win a $5.00 instant prize. Details of how this will work are still in discussion.
The Product Development Committee would like to recommend to the Commission to replace the current Tri-State Paycheck game with Tri-State Weekly Grand in November 2008.
Doug Parker pointed out that this was a targeted time frame but Scientific Games doesn’t know an exact time frame until a full evaluation of the SRS is done.
MOTION
A motion was made by Commissioner McPherson to replace the current Tri-State Paycheck game with Tri-State Weekly Grand in November 2008, actual date yet to be determined. Motion was seconded and voted in the affirmative.
The next game change will be to Megabucks. A number of suggestions from the states have included simplifying the game, getting rid of the bonus ball, do something that will interest the players, and consider changing the game to a $2 price point.
DRAW COMMITTEE – Maura McCann
Lisa Rodrigue from the Maine State Lottery informed Maura that the Tri-State Monitors at the Computer Site would no longer be used. A couple Scientific Games’ employees have taken over that responsibility.
Maura also noted that a NH Monitor who had been working for Tri-State for the past 10 years has resigned that position. This position has been filled.
OPERATIONS COMMITTEE – Rich Sperlazzi
The committee has met a couple times this past month to shore up the palm card SRS and the template SRS.
In conjunction with the Development Committee, staff has been working on the SRS for the new cash game. There are a few finishing touches to be done.
SCIENTIFIC GAMES – Liz Dimmick
Scientific Games now has some game ideas for a starting point for Megabucks. They now have a direction to go with.
ACCEPTANCE OF COMMITTEE REPORTS
A motion was made by Commissioner McPherson to accept the committee reports as presented. Motion was seconded and voted in the affirmative.
OTHER BUSINESS
A motion was made to Appointment the FY09 Tri-State Officers:
Thomas Scala, Chair
Orland McPherson, Vice Chair
Richard J. Campbell, Commissioner
Motion was seconded and voted in the affirmative.
Rich Sperlazzi expressed his appreciation to Director Yandow and his staff for hosting the meeting.
Directors Wisler and Yandow expressed their thanks to Maura for Chairing the Development Committee and all that was accomplished. A thank you was also expressed to Richard Campbell for Chairing the Tri-State Lotto Commission.
A motion to adjourn was made at 10:05 a.m.
___________________________
Richard Campbell, Chair