Draw Games - NASPL Matrix

INSIGHTSMay/June 2016

The Official Publication of the North American Association of State & Provincial Lotteries

LEADERSHIP IN THE LAND NASPL LAUNCHES NEW SITE

Focus on:

Draw Games

2 INSIGHTS May/June 2016

If you haven’t been NASPL’s website recently, you should check it out! The site has been refreshed and has a new colorful, tiled look that is now mobile

friendly. Since nearly two-thirds of U.S. residents have smartphones, this upgrade was critical. The redesign also included adding a rotating features box, a new section on responsible gambling and player protection, and a media center. The link to the Matrix from the website is new, too, and offers lottery members quick access to important research information.

Also, check out the article in this issue about Connecticut becoming the first U.S. lottery to license the British Columbia Lottery Corp.’s GameSense program, which offers positive materials to promote responsible play. One theme of the branding program is to be sure players see gambling as entertainment, and not a source of income. We all want players to have fun without getting in over their heads.

We’ve also compiled a section on draw games: a look at some of the game innovations out there, how lotteries advertise their jackpots and the promotions they’ve launched. It’s interesting to see that in some ways lotteries promote these games in a similar fashion, but we all are using different strategies. In addition, there’s a look at how Canadian lotteries have refreshed their big national lotto games.

Speaking of strategies, NASPL’s expanded executive committee, which includes past presidents still in director roles, met recently to decide the top three long-term key strategic priorities. As we identified through a previous survey of members and vendors, we needed a strategic plan with clear actionable items. We agreed the top three anchors are training and professional development, the annual conference and big industry issues. First, members think training and professional development events are relevant and have a clear purpose for attendees. Second, while they get a lot out of the annual conference, members would like to see more unique topics; presentations they can’t find at any other industry event. Third, we need to address big industry issues, like uniformity, along with NASPL developing positions on key issues. Members want NASPL to be the voice of the industry. So the next step is for members to develop an action plan for these anchors during May and June. Webinars will be held for directors and lottery staff in May to gather input. Then during the Spring Directors’ Meeting in June, we will hold breakout sessions to develop detailed items to be included in the final action plan.

So we have much work ahead of us. And like Henry Ford once said, “Coming together is a beginning; keeping together is progress; working together is success!”

May Scheve ReardonNASPL PresidentExecutive Director, Missouri Lottery

Circulation:Insights ISSN 1528-123X,

May/June 2016, Volume No. Sixteen, Issue Three. Published bi-monthly by NASPL

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David B. Gale

Thomas Tulloch

Andrew White

Tamika Ligon

John Koenig

Janine Hutzell

Patricia McQueen

Jake Coy

Mike Duff

Paul Corey

Executive Director

Director of Administration

VP of Operations

Director of Program Planning

Graphic Designer

Accounting

Editor Vendor Relations

NSI Coordinator I.T. / Software Development

INSIGHTS

May Scheve Reardon

Rose Hudson

Charlie McIntyre

Alice Garland

David Barden

Terry Rich

David Loeb

Carole Hedinger

Paula Harper Bethea

Randy Miller

Gary Grief

President

First Vice-President

Second Vice-President

Treasurer

Secretary

Immediate Past President

Pres. Interprovincial Lotteries Region I Director

Region II Director

Region III Director

Region IV Director

NASPL Staff

NASPL Executive Committee

From the President

INSIGHTS May/June 2016 3


6Around the IndustryNews around the industry featuring the Kentucky Lottery, Wheel of Fortune and Ghostbusters.

12Q&A with Rose Hudson, President and Chief Executive Officer, Louisiana Lottery Corporation By Gabrielle Braud, Greater Baton Rouge Business Report

18Making a Difference:Carole Everett, Director of Communications, Maryland Lottery and Gaming Control Agency 22Leadership in the LandLottery Leadership Institute is one of NASPL’s fastest-growing events, and the Class of 2016 experienced another dynamic program.

26A Field Guide to the Lottery Games of North AmericaStephen Wade, Research and Development Manager, Washington’s Lottery and Principal, Lottery Management Consulting, LLC 28GameSense Comes to ConnecticutThe Connecticut Lottery is the first U.S. lottery to license GameSense, a unique responsible gambling program developed by the British Columbia Lottery Corp.

30NASPL Launches New Website

May/June 2016

Leadership in the LAND

34Lucky NumbersDraw-based games may lack the pizzazz of their instant counterparts, but as we all saw in January, there’s nothing like an enormous jackpot to capture the attention of the entire world.By Patricia McQueen

42 Testing Draw Game Concepts in North CarolinaQ&A with Randy Spielman, Director of Product Development, North Carolina Education Lottery

44 Harnessing the Power of PowerballPaul Lauzon, Senior Vice President and Managing Director with Ipsos Reid, and Jason Allsopp, Vice President with Ipsos’ Lottery & Gaming practice.

48Orchestrating Lotto Success – With a Little Luck – in CanadaCanada’s two national lotto games soared in FY16, with a number of factors contributing to a miracle year. By Patricia McQueen

52Watching While You WinGames offering both an instant win and nightly draw feature are popular in some jurisdictions, particularly in Canada.By Patricia McQueen

56Beyond the DrawHow lotteries are taking a different look at draw products. 60Advertising Jackpot Games - Strategies That SellRoundup of jackpot advertising strategies around North America.

72Does Jackpot Advertising Work?

76Promotional Play Roundup of draw game promotions around North America.

Focus On: Draw GamesIn this Issue:


INSIGHTS July/August 2015 5


Around the Industry

Wheel of Fortune delivering new fans – and sales – to lotteries

Emmy award winning Wheel of Fortune is the number one syndicated game show in the United States with an unprecedented 33 year history of success.

The Wheel of Fortune brand is also one of the most successful and well established brands in the multi-billion dollar gaming industry. 2016 marks the 20th anniversary of the Wheel of Fortune slot games. IGT has created over 200 WOF-themed games in multiple formats that have prominent placement in casinos across North America.

IGT’s acquisition of the Wheel of Fortune lottery license has provided a strategic opportunity to further strengthen the Wheel of Fortune brand through convergence into the lottery industry with a focus on game innovation in multiple product channels including instant scratch games, draw games and interactive games.

IGT research has confirmed the widespread appeal of the Wheel of Fortune brand with lottery players of all ages – including the highly sought after 18-34 year old age group. Research also shows that both quick-play and extended-play Wheel of Fortune games are appealing, with a Wheel of Fortune crossword game having significant appeal among extended-play players. Research conducted by Wheel of Fortune also confirms that Wheel of Fortune TV fans who watch 3+ times per week also have an affinity for crossword puzzles and play at least twice per week. That is 158 percent more likely than the average adult and far more often than other similar leisure activities, such as board games or playing cards.

Fifteen US lotteries will launch a Wheel of Fortune instant scratch game in 2016 and participate in a linked 2nd chance promotion that will send 84 lucky winners to Los Angeles to participate in a lottery winner only, non-broadcast game of Wheel of Fortune. Current sales are showing the power of the brand with Florida Lottery experiencing historical, record breaking sales results with their $5 Wheel of Fortune scratch game smashing the previous record by more than 10 percent. And after six weeks of sales, the Idaho Lottery’s Wheel of Fortune instant scratch game is indexing at 124.

Continuous innovation will be the key to sustaining the Wheel of Fortune brand in all formats – the TV game show, casino games and lottery games. Sony has done an outstanding job of keeping the game show relevant and popular with viewers and continues to invest in innovation. Likewise IGT will continue to invest in innovating the Wheel of Fortune games across all product channels to bring customers games that will deliver results.


© 2015 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.

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Around the Industry

Some Kentucky Lottery games now available for purchase via the internet Ushering in a new era, in April the Kentucky Lottery launched sales of several products via the internet.

Eligible players who register for an account at kylottery.com and are within the boundaries of the state are able to purchase Powerball, Mega Millions and Kentucky Cash

Ball draw games. At launch there were five Instant Play games ranging in price from 50 cents to $3 available, with more being introduced in the future.

“Our customers are aging, and in order to maintain our business, we need to be more attractive to a younger demographic who are accustomed to conducting a majority of their retail purchases online,” said Arch Gleason, President and Chief Executive Officer of the Kentucky Lottery. “This group is very mobile, and they expect brands to be accessible online and on their devices. We’re delivering what they want.”

Gleason said the move to internet sales should not be interpreted as competition to the Kentucky Lottery’s 3200 retailers. “Brick and mortar retailers are and will continue to be the most important part of our business,” he said. To that end, Gleason announced:

• Players will be able to fund their online account for play at stores which sell lottery tickets. Retailers will receive their standard 5 percent commission for the sale of these products.

• For at least the first six months of internet lottery sales in Kentucky, players who add funds to their accounts by purchasing at least $20 in account funding on a single transaction at brick and mortar retailers will receive an extra $5 in Bonus Bucks in their online account.

• The lottery will continue to invest in retailers, recently adding 300 new Gemini ticket vending machines and 250 new jackpot signs. The lottery will also continue to partner with retailers in co-promotions which will help drive traffic to their stores.

There are three other states currently selling lottery tickets via the Internet – Michigan, Georgia and Illinois. “In the first full year of internet lottery sales in Michigan, they had a 6 percent increase in traditional brick and mortar business. In the first full year of Internet lottery games in Georgia, they had a 4 percent increase in traditional brick and mortar business,” Gleason said. “The key here is that overall sales increased at retail once internet sales was launched, and we expect this to hold true in Kentucky.”

Gleason also said the platform was designed with a number of responsible gambling controls in place to protect players. “Our system was designed to follow the Internet Responsible Gambling Standards developed by the National Council on Problem Gambling. Our limits are among some of the most conservative in the nation, and continue our long history of offering games in the Commonwealth in the most socially-responsible manner available,” Gleason said.

Safeguards include:

• Account deposit maximum limits of $200 daily, $500 weekly and $1000 monthly. These limits can be lowered by players at any time, and if they subsequently raise them, a 24 hour cooling off period is in place before new limits are activated.

• Identity verification to confirm a player is over 18.• Self-exclusion from the site, meaning they will not be able

to access any of the site’s wagering functions.• In conjunction with the KY Council on Problem Gambling,

the Lottery will soon be underwriting the addition of text and chat capability to the 1-800-GAMBLER service. Players who may not feel comfortable talking with someone with questions about the issue will be able to text or chat with experts who can help.

• Other features such as visible play clock available at all times showing length of play, the display of bets, wins, losses and account balances as cash, and free or demonstration games with the same payout percentages and odds as games available for purchase.

Sales for the platform in its first full year (FY17) are estimated to be $7 million. In contrast, overall lottery sales for the current fiscal year are projected to be $994.5 million.



A new Ghostbusters-themed scratch game has hit stores in Iowa and on May 13 the Iowa Lottery launched

a promotion based around the game that will offer prizes of tickets to Wizard World Comic Con in Chicago, home theater packages and cash.

The lottery game and promotion are part of the celebration leading up to the Ghostbusters movie that will open in theaters July 15. The Iowa Lottery is the first in the United States to team up with Wizard World Comic Con and announced its Ghostbusters promotion at the Des Moines installment of the fan convention that celebrates comic books, science fiction and pop culture.

“Our new scratch game gives folks a chance to reminisce about some of their favorite Ghostbusters characters and gear up for this summer’s new movie,” Iowa Lottery CEO Terry Rich said. “And our promotion gives players even more opportunities to win and celebrate being fans. This is going to be a blast.”

The $5 Ghostbusters scratch game debuted May 2 in Iowa. Tickets in the game feature iconic images from the movie, including Slimer the ghost, the Stay Puft Marshmallow Man and silhouettes of a Ghostbusters team member wearing a proton pack. The game offers prizes from $5 up to $50,000.

On May 13, a lottery promotion began that players can enter using non-winning tickets in the Ghostbusters game. There will be three drawing dates during the 90-day Play It Again promotion, with each drawing featuring different prizes.

The first drawing on June 14 will feature 10 prize packages to the Wizard World Comic Con fan convention Aug. 18-21 in Chicago. Each package, valued at $1,700, will include a three-night stay for two at the Hyatt Regency O’Hare in Chicago, two VIP Experience tickets to the four-day Comic Con event, $500 spending cash and Ghostbusters merchandise.

The second drawing on July 14 will feature 10 home movie prize packages. Each package, valued at nearly $1,500 will include a Sony 40-inch HDTV with Wi-Fi; Sony sound bar with wireless subwoofer; Sony Blu-ray Disc player; $150 movie gift card; $150 spending cash for food and beverages; and Ghostbusters merchandise.

The promotion’s third drawing and grand-prize drawing will both be held on Aug. 16. The third drawing will feature 10 prizes of $1,000 and the grand-prize drawing will be for one prize of $5,000. Throughout the promotion, the lottery also will hold Ghostbusters-themed

events at retail locations around the state.

To enter the promotion, Iowa Lottery players must join or already be members of the lottery’s free VIP Club. On the Ghostbusters page at www.ialotteryvip.com, players will be asked to enter the 10-digit entry number from the front of a non-winning ticket in the game along with the ticket number from the back.

State and federal taxes for the prize packages also will be paid. Rules and complete details are available on the lottery website at www.ialottery.com and drawing results also will be posted there.

Since the Iowa Lottery’s start in 1985, its players have won more than $3.6 billion in prizes while the lottery has raised more than $1.6 billion for the state programs that benefit all Iowans.

Today, lottery proceeds in Iowa have three main purposes: They provide support for our state’s veterans and their families through the Iowa Veterans Trust Fund; help for a variety of significant projects through the state General Fund; and backing for the Vision Iowa program, which was implemented to create tourism destinations and community attractions in the state and build and repair schools.

Around the Industry

Iowa Lottery launches Ghostbusters game and promotion in lead-up to summer movie


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What was your first job, and what did you learn from it?Eager to have cash (and with parents who were adamant that I had to earn it), I babysat for neighbors and learned very early on to go the extra mile. My customers were grateful when I tidied up and washed dishes, in addition to taking care of the kids. I ended up working for a family with three children while I was in college. Those babysitting days paid off!

Please describe for our readers, in a few sentences, how you got to where you are today. What previous experience prepared you for the position of president/CEO?I was part of the startup team of the Louisiana Lottery Corp., which presented the good fortune of doing something of everything, from cleaning bathrooms to managing our initial $10 million line of credit. I left after a year but kept in touch with my lottery colleagues. Then in 2000, an opportunity came available to return to the corporation and manage the human resource function. Eventually, the CEO took another job, and the board of directors selected me as his successor.

The many jobs I have held have all played a role in preparing me for this position. I have been a sales person, so I understand sales goals/quotas; I also have a deep HR background, and so managing human capital is very dear to me.

How many years have you been with the Louisiana Lottery Corp.? What are some of the biggest changes the organization has experienced during that time?I have been with the lottery 16 years, celebrating my 10th year as president. During my tenure, technology changes have transformed our business at every level. Some of those include completely converting the hardware and software used by our retailers to generate tickets to touch-screen, user-friendly interfacing. We are also using real-time data to drive strategic decision making throughout the organization. From a marketing perspective, the explosion of the digital space and social media has allowed us to converse directly with our players and develop deeper brand loyalty.

What is the most difficult part about holding the title of CEO?The absolute most difficult part is every decision backs up to me. I know each employee, I worry about their families, and I worry about meeting our fiscal mission and all that goes along with that on a daily basis.

What’s up next for the Louisiana Lottery Corp.?Historically, the Lottery has enjoyed great sales success with Louisiana themed scratch-offs. In fact, the $2 game Spice It Up!, a partnership with Tony Chachere’s Creole Foods of Opelousas, won the Best Instant Game of 2015 among North American lotteries. Our partnership with the New Orleans Saints to produce a branded ticket and game-day prize experiences is in its seventh successful year as well. We will continue to pursue these types of win-win relationships with other Louisiana brands. On the technology front, the Lottery is exploring a mobile phone application that would allow players to scan ticket bar codes to check their winnings, receive notifications on jackpot thresholds, as well as create saved playslips on their phones to be scanned to generate tickets.

Q&A with Rose Hudson, President and Chief Executive Officer, Louisiana Lottery Corporation

By Gabrielle Braud, Greater Baton Rouge Business Report

The following interview with Rose Hudson was first published in April by the Greater Baton Rouge Business Report, and is reprinted here with permission. Copyright Greater Baton Rouge Business Report, published by Louisiana Business Inc. All rights reserved.


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"I value the opinions and expertise of others, so I ask lots of

questions, but in the end,

I am not afraid to make and stand by my decisions."

Fiscal year 2015 was the Lottery’s second best ever with Louisiana K-12 education transfers surpassing $158 million. To what do you attribute that success?At least 35 percent of every sale is transferred to the state for K-12 public education, so sales have a direct impact on our ability to maximize revenue for the state. Some of the most critical drivers of our sales success include the ability to use our unclaimed prize fund to strategically bump up the prize payout percentages on our scratch-off games. We cannot depend on record-breaking Powerball jackpots; they definitely drive sales, but their occurrence is unpredictable and unreliable. However, we have been able to grow scratch-off sales by 40 percent over the last five years by increasing prize payouts from 58.5 percent to 62.75 percent during this time. Players love to win more, and the state has proven to benefit as well through recurring higher sales. Louisiana law directs unclaimed prizes to be used for prizes or player promotions; however, that ability is being threatened. In a last ditch effort to plug the state’s budget gap, lawmakers tapped $20 million of the Lottery’s unclaimed prize fund as a one-time solution during the last legislative session.

What type of innovations have you moved forward since assuming the role of president/CEO in June 2006?The Louisiana Lottery has paved the way in our industry for technological innovation. We developed a Lottery-specific iPad application for our sales representatives, which allows them to analyze individual retailer sales in real time by game and time frame, and also empowers them to make strategic decisions based on comparisons to other retailers in the area or per capita averages. Integrating retailer data with population, economic indicators and traffic patterns, we can more quickly spot trends and opportunities for improvement.

In addition, we developed a data-driven inventory management system that predicts which scratch-off games will sell the best in each retail location to ensure the right product reaches the right retailer at the right time. Using sophisticated algorithms and historical sales trends, we automatically ship the game price points and play styles that will sell fastest at specific locations and how many of those packs are needed before the next order. Through inventory management, we optimize product placement and get the freshest inventory into stores. This is one way we have been able to grow scratch-off sales to near startup levels, when the Lottery was the only form of gaming available, as well as control operational costs.

You hold numerous roles in the community and serve on a variety of boards. If you had to pick one, which role would you say you most passionate about or most proud of?I am so passionate about the work of Mary Bird Perkins Our Lady of the Lake Cancer Center. I have always been awe of the commitment to providing care and screening, but when cancer touched my family, the connection became more personal and important.

What is a typical day at the office like?No day is typical, but the first thing I have to do each day is informally check in with members of the management team. I try to attack a few phone calls and emails before I get to the office, because once I arrive, it can become a little like Grand Central Station. I deal with internal operational issues, personnel issues, and coupled with lots of ongoing matters on the national level.

How would you describe your leadership style?Various members of the team say I am quite inclusive. I value the opinions and expertise of others, so I ask lots of questions, but in the end, I am not afraid to make and stand by my decisions.



What has been the most fulfilling moment in your career to date?The selection by the Lottery Corp.’s Board of Directors as president and CEO was big. The board opted to conduct a national search, but ended up with a candidate right within the organization. I continue to look back on that process with gratitude. They put an incredible amount of faith and trust in me and my abilities, and I believe I have honored their choice with my efforts.

What is one thing about your job people don’t expect or know about?I encounter so many people who think all I do is give out money! We run a real business, with all of the challenges that go with it. I meet with bankers, consider contractual issues, legal issues, etc. Giving away the money is the fun part and the break that I get from the business part.

What is a great piece of advice you have personally received? Did you have occasion to put it to use?I look to the Spike Lee movie for advice … it is simple … Do the Right Thing. You can make it complicated and more verbose, but in the end, it is an excellent guiding principle.

How many employees do you have? How would you describe your workplace culture, and what is your secret for managing employees?Approximately 125 full-time employees work for the Louisiana Lottery. We have an interesting culture because of our regional offices spread out across the state. Over the past 10 years, we have grown over into an organization that is curious and innovative. One way that spirit is nurtured is through Innovation Station, an organizational web portal that offers each employee the opportunity to contribute and weigh in on innovative ideas and solutions. We do get some interesting ideas, but it is also a great way to get conversation flowing between our employees all over the state.

I don’t necessarily have a secret for managing employees. I simply treat all as I would want to be treated, even in difficult situations or conversations. I lead with respect and honesty, and that is modeled by all of my team.

What is the next challenge you have planned?I am trying to learn French by taking lessons via podcasts … what a challenge! As for the Lottery, there are a number of challenges ahead. We set our sights on half a billion dollars in gross revenue five years ago, and we just might hit it this year! The elusive revenue goal is always the No. 1 challenge. I also look to find exciting marketing opportunities and ways to engage our players in a changing marketplace.

What gets your workday off to a good start?A prayer to make good decisions and some good tunes!

What is your favorite way to spend your time?I get energy from people, so I love to relax with good friends, sharing some laughs. I can blow an entire afternoon watching cooking shows with my son. We will sit and plan trips and meals based on the show we are watching.

What do you do to unwind?I can feel the stress and the weight of the world melt away when I am sitting on the beach with a book. That is my happy place, bar none.

If you had to be a teacher of something, what would you teach?I would probably teach something in business or public administration. Quality leadership skills are crucial but are billed as “soft skills.” I have seen too many disastrous leaders who could be successful if only they were thoughtful, prepared, emotional intelligent professionals.

"I simply treat all as I would

want to be treated, even

in difficult situations or

conversations. I lead with

respect and honesty,

and that is modeled by all

of my team."



A lottery communications professional always has to expect the unexpected. A big winner could walk through the door at any time, a reporter might be on deadline, looking for information or interviews, irritable players might call and complain. A presentation, meeting, drawing issue or last-minute change on an upcoming event might occur and completely shift the day. It’s the perfect fit for Carole Everett, Director

of Communications for the Maryland Lottery and Gaming. “I’m a high-energy multi-tasker, perpetually in motion. People have told me that I walk a little too fast, act a little too crazy and sometimes, to the irritation of my staff, get a little too impatient when things need to get done,” she said when thinking about her ever-changing role at the Lottery. But there’s no doubt that she and her staff get things done.

“Carole has this wonderful ability to put everyone in a good mood – her empathy, her high-energy personality, her doggedness, her smile, her infectious humor – it all contributes to making everyone around her feel inspired and energized,” said Director Gordon Medenica. “She truly is also one of the funniest people I have ever met – when we go on road trips, everybody wants to be in the car with Carole! And behind the great personality is a serious professional – Carole manages media relations with superb skill, she is a highly creative marketing and promotions manager and she has excellent political instincts. Carole is a crackerjack!”

CAROLE EVERETTDirector of Communications, Maryland Lottery and Gaming

DifferenceMaking a


Everett joined the Lottery in 2003 after a career first as an ad agency copywriter (among other things she wrote for the old Sears catalog) and then as a political campaign manager and fund raiser for the Maryland Democratic Party. Her lottery career began as a product analyst but it wasn’t long before she decided that working with numbers was not her strong suit. She gravitated towards the communications department, eagerly reading everything that was produced, then passing along little corrections to the director. “I guess I wore him down with my unsolicited advice and edits because when a position opened up in his department, he figured it was better to have me on his staff instead of hassling him from across the agency. And the rest is history!”

Her role changed dramatically in 2008, when voters approved gaming machines to be overseen by the Maryland Lottery, which became the Maryland Lottery and Gaming. “The Maryland Lottery’s mission has always been as a revenue generator for the state,” said Everett. “When gaming arrived on the scene, we also took on the responsibility of regulating the casino program. With two very different, yet related entities working side by side, it was important to define our dual role to the media and the public, and I think we have done a pretty good job with that.” The media is always focused on the casino activity, she noted, especially as new casinos have opened over the years, but stories about big jackpots and big lottery winners still pique public interest.

Everett majored in communications at Ithaca College in New York, with an advertising/public relations focus and a minor in writing. Years ago, she co-authored “The After-College Guide to Life,” an alternative to the ubiquitous “What Color is Your Parachute,” which she felt lacked the practical nuts-and-bolts approach needed for helping new grads navigate all aspects of post-college life. “I learned more about promotions and public relations while hawking that book than any college course taught me.”

Raised on a small chicken-turned-vegetable farm in New Jersey, (“Yes,” she said sarcastically, “there really ARE farms in New Jersey.”) Everett is an outdoor enthusiast, enjoying hiking, kayaking and traveling. She loves photography, especially nature photography, and prefers walking in the woods over watching TV any day. Two adult children, an eclectic mix of friends and a brand-new husband (they were just married in May) complete her life outside her lottery home.


What issues do you face in a state that allows anonymous claims?As one of only six states that allow players to remain anonymous, we wrestle with how to inform the public about our winners. The inability to show the face of an actual winner with a real name and a story to go with it is a bit of a public relations handicap. People want to see people – real people – winning. In order to convey honesty and integrity, it’s important to be transparent about what we do and showing the public our winners is a big part of that. In fact, nothing works better. But we can’t force people to agree to publicity, so we’ve gotten a little more creative in how we promote our winners. We always create a celebratory, fun atmosphere in our Winner’s Lounge, greeting new winners with cheers and applause. We chat them up and encourage the photo, but if they decline (and they often do) we attempt to gently cajole them into taking a photo hidden behind a prop like an oversized check or a giant cut-out of the ticket. The idea first came about with our “Three Amigos,” winners of the big $656 million Mega Millions jackpot in March 2012. They were, understandably, nervous and flat out refused to do any publicity. I convinced them to take a completely anonymous photo in which

every identifiable feature was covered – even giving them gloves to wear. Then I created a catchy name for the trio and put it on the check. In the end, it was, literally, a win-win situation. They had a blast and thanked us for making the experience so much fun. And we were able to use that photo, along with the story, which appeared worldwide, despite the fact that there were no faces or actual names of the winners.

Who stands out in your mind as the most unusual lottery winner you’ve come across?Hands down, Ellwood “Bunky” Bartlett, an accountant who was a self-proclaimed Wiccan and owned a New Age bookstore. Bunky won an $82.5 million Mega Millions jackpot in 2007 when that was considered a big jackpot. He was a real character and broke the news to the media before we even knew he existed. He actually took his winning ticket to the local car dealership, showed it to them and bought, on good faith, three cars for his family that day – even before he came in to claim his winnings. He started a record label, opened a pizza delivery franchise (because nobody delivered to his house) and


was working on developing a video game when we last caught up with him.

How can lotteries fight the popular notion that big lottery winners end up worse off than before they became suddenly wealthy?Unfortunately, media is far more interested in negative stories and sensationalism, with TV shows and movies perpetuating the notion that all big winners “blow” their money. Experience has shown that, for the vast majority of winners, that’s just not the case. But nice stories about real people saving their money and helping out their families don’t get much attention. For us, we simply do our best to show the public that our winners, big and small, are real people – just like them, who use their winnings to pay for bills and children’s educations and yes, maybe take that dream vacation.

What is your favorite part of the job?I work with a great group of people, so it makes it all fun. And if you’re getting paid to have fun, how can it get any better than that? I grew up with parents who were fans of the old comedians – Don

Rickles, Joan Rivers, Groucho Marx, Jack Benny – so I’ve been groomed to appreciate one-liners, quick quips and goofy “shtick.” Doing on-air interviews, internal and external events, anything live or with a microphone, is tons of fun and allows me to stay in touch with my inner stand-up comic. When I first came to the Maryland Lottery, I got a big kick out of then-director Buddy Roogow with his on- (and off-) camera antics. It was great to see that he could take the lottery business very seriously but still have tons of fun doing it. It is, after all, an entertainment business and it’s important to project that when possible.

Is there anything you don’t like?The fact that I can never win the big jackpot and have my picture taken with an oversized Maryland Lottery check that has my name on the front!


LeadershipLand

Of the many conferences and events in the lottery industry, NASPL’s Lottery

Leadership Institute (LLI) stands alone. This unique program is designed to bring together industry employees at all levels, teaching them the leadership and personal relationship skills that will help them, and their employers, meet the lottery challenges of the future.

This year’s event was again held at the Renaissance Hotel in Cleveland, Ohio. The Class of 2016 brought together 80 attendees from throughout North America and from as far away as Africa. They included industry newcomers and veterans alike, representing many disciplines and management levels within lotteries and vendor organizations.

LLI kicked off with NASPL Executive Director David Gale and Ohio Lottery Director Dennis Berg welcoming the group to the great city of Cleveland. Berg talked about the evolution of the lottery and added some thoughts on his vision of the future. The attendees then participated in an icebreaker exercise designed to make everyone comfortable with working together. They jumped right

into the activity as if they were old friends and colleagues, tasked with assembling a tower using spaghetti, tape and a marshmallow.

After lunch, NASPL’s top level associate members were invited to speak to the group. Intralot kicked off the session, as Product Marketing Manager Tara Smith and Ohio

Marketing Data Analyst Mark Mitchell talked about the latest and greatest the company has to offer and the exciting new products being introduced in Ohio. They were followed by Keith Cash, Vice President, Global CSP Services, for Scientific Games, who discussed the consumer trends and behaviors we are now seeing in the industry. The consumer dialogue is rapidly changing due to technology trends and lifestyle factors. The final speaker was IGT’s Michele Carney, Vice President Marketing and Portfolio Management, who talked about current retail and consumer trends and how they will influence the future.

Lottery Leadership Institute is one of NASPL’s fastest-growing events, and the Class of 2016 experienced another dynamic program.

NASPL 2016Lottery Leadership Institute

Photos by Heather White, White Sands Photography

Also during the afternoon session, representatives of the Ohio Lottery talked about their long running game show, Cash Explosion. Their production team explained the long history of the show and shared the details that make it work. 2016 marks a landmark year for Cash Explosion, as it is in the 30th year of production.

The Doctor will see you nowThe second day of the seminar provided a leadership

training program led by Dr. Kay Potetz, Ph.D – it was her fifth year at Lottery Leadership. She started the day with the topic Emotional Intelligence as a Basis for Success. Potetz stated that

successful leadership requires that you renovate your leadership style, take control of your day, get in touch with your power, improve your people skills and understand (not judge) others’ behavior. By understanding and grasping these traits, your Emotional Intelligence levels will rise. Those with high levels of E.I. also demonstrate certain traits that are necessary to become great leaders. They know themselves and their “triggers” and have the ability to deliver promises and obligations in a timely manner. They are trustworthy and have access to information, support and resources from their peers. They also never play the power game.

Potetz then put the attendees through an exercise to determine their individual style. There are four possible individual styles: Analytical, Amiable, Driver and Expressive. By determining the behaviors of each, attendees figured out what style applied to them. The rest of the afternoon was spent working within individual style groups, participating in different activities.

Escape!That evening the Lottery Leadership class participated in an

offsite event at Escape in 60! There each group had one hour to escape a room. The four rooms featured a prison break,

It was an awesome week and I will definitely recommend the NASPL LLI to other coworkers!

I thoroughly enjoyed myself and learned a great deal

about the lottery industry. The networking alone was

outstanding.

This was an excellent conference. I gained valuable insight into the lottery industry

and met many people with whom I hope to interact

with going forward. A great experience all around, and

Cleveland was most gracious!

What attendees are saying...


a robbery, a sports fanatic’s attic and death row. The fastest group to escape their room got a prize, and this year we actually had a tie! Two groups escaped their room in 27 minutes, each only using one provided hint. Some of the other groups also escaped in time but others were not so lucky! In all, everyone had a great time and certainly the day’s training activities helped them work together to plan their escapes.

The night was capped with dinner at the Barley House in downtown Cleveland.

Ask a DirectorOn Wednesday, May Sheve Reardon, Gerald

Aubin, Alice Garland, David Barden, Terry Rich, Rebecca Hargrove, Jeff Anderson and Dennis Berg took part in a Director Panel, where the LLI delegates participated in a question and answer session. Some of the topics discussed were fantasy sports and lottery beneficiary programs. The directors also offered advice about guiding and grooming

employees for the director’s role, along with advice they would give to anyone looking to become a lottery director.

The directors also talked about the importance of the vendor community. The NASPL Associate Membership program is a great way for vendors and lotteries to come together for common goals, and we very much value this partnership.


Let’s design a game!John Balash, MET Professor at Ohio University, put

together a design-a-game exercise for the groups. They were given the rest of the day to create a game, focusing on game concept, game mechanics, general considerations and business opportunity.

The game concepts included game description, product concept/channel/service, play style, graphics rationale and game mechanics (or what the player is doing). For game mechanics they were asked a series of questions:

1. Should the game be a draw, instant or other?2. What does the player do in the game?3. What happens to the player in the game?4. What features should the game have?

The general considerations each game needed included an advertising and marketing strategy, distribution channels and technology or platform. Each group also had to explain their business opportunity, such as the target market, design a creative launch event and indicate relevance to market segment.

The big revealOn Thursday morning the groups presented their games

in front of a panel of judges from the Ohio Lottery in Shark Tank style. The panel included: Greg Bowers, Connie Miller, Sandy Lesko and Patty Vasil. Each group had 12 minutes to pitch their game and marketing plan. The judges were then given four minutes to ask questions. After all the groups completed their pitches, the judges then determined the top three games.

The second runner up group was Team 1: Game of Thrones; the runner up was Team 7: See it Live and the grand prize winner was Team 8: Flick You.

The decision on the top three was very difficult given that all the groups did a great job designing their games. A lot of teamwork and thought went into each game design and all groups completed the task at hand.

Wrapping it upIt was a very successful week at Lottery Leadership

Institute, producing yet another graduating class ready to share their newly-acquired skills and ideas with their colleagues back home. It was a great opportunity for the attendees to meet and connect with other employees throughout the industry to create lasting relationships that will serve them well.

Visit the NASPL Matrix to view the presentations

and more from Lottery Leadership at: www.nasplmatrix.org


2) Do the player and the lottery choose the same number of symbols?a. In many games (again, like Lotto) they do choose

the same number of symbols from the same field of possible choices.

b. In other games, for example Keno, they may choose fields of different sizes.

3) Do the player and the lottery choose more than one symbol from each field of symbols?a. In many games, again like Lotto, they do. b. In other games, like the classic “Numbers” game, they

do not.

The classic Numbers game drawing is sometimes described as “select a number in the range 0 through 9 three times with replacement.” However, I find it clearer to describe it as “select a single symbol from each of three fields; each field is numerals 0 through 9.” Putting it this way helps us to realize that it would be possible to use some other field definition than the numerals 1 through 9 – that is, we could find games with different properties by using a base other than ten. These have not been developed, as Jade’s note on the chart reminds us.

Having laid out a chart using these three questions, I feel that I have identified three meaningful groups of matching games: the Keno (K), Lotto (L) and Numbers (N) groups. In order to describe the individual games within these groups further in their specifics, I propose a notation that adds the specifics of field sizes and number of symbols chosen from each field. Classic Keno requires that we state the field size, the size of the lottery’s selection, and the size of the player’s selection: this makes it clear that Keno is in fact several different games, from “K.1/20/80” (one-spot Keno) up through “K.10/20/80” (ten spot Keno) or even further in some jurisdictions.

Writing it this way makes it clear to me that we could think of Keno-type games with different selection sets, from different field sizes than 80. Some of these could have interesting properties.

Stephen Wade, Research and Development Manager, Washington’s Lottery and Principal, Lottery Management Consulting, LLC

A Field Guide to the Lottery Games of

North America

As I related in the article that appeared in the March/April 2016 issue of Insights, I was glad when Jade asked me for a chart that would lay out

the relationships among the various draw games being sold in North America. Partly, I was just glad that she thought it would be relevant to her as she worked for the ad agency serving the lottery account. At another level, I looked forward to the mental exercise of doing for lottery games what biologists of many generations ago did for the plants and animals they encountered: they constructed simple classification keys that served not only to identify the creatures by their differences, but to reveal their relatedness through their similarities. The recognition of natural groupings according to deep structural similarities is fundamental in the life sciences.

As I got on with this work, it became clear to me that the structural organizing principle had to be how the drawing event determines the winning outcome. This may not be the way we usually think about draw games - we may tend to think more about the size of the top prize, or how often the drawing events are held, or whether the games is relatively old, or new. All these perspectives are fine, and they can be added as descriptive notes to the chart that follows. In fact, once I gave her the chart, Jade embellished her copy with sticky notes, some of I reproduce here because I think they add value. But the underlying questions are these:

1) Does the winning event depend only upon a match between the player’s choice of symbols and the lottery’s selection? a. In many games (like Lotto) it does.b. Sometimes matching is an element of the winning

event, but there is another requirement like physical alignment of the symbols on a card, as in Bingo.

c. Sometimes not matching determines the win, as in the child’s game of “Scissors, Paper, Rock.”


In games of the Lotto type it is understood that the lottery and the player make selections of the same size. In the original Lotto game, these selections were made from a single field, so “L.6/49” is sufficient to describe how the winning event(s) are determined in classic Lotto. Cash Lottos in the various states are usually L.5 of some field size. The “All or Nothing” game is “L.12/24.”

Powerball is also a Lotto-type game but with two fields. It would be designated “L.5/69, 1/26.” MUSL’s Hot Lotto is “L.5/47, 1/19.”

We could think about Lotto games with more than two fields. Like Numbers games in bases other than ten, these have not been developed.

Returning to the classic “Pick 3” game: in this shorthand notation, it would be “N.10,10,10.”

I hope this way of looking at our draw games adds something to the way you have understood them. Of course, there is more to each game than is represented on the chart. The price, the frequency of drawings, the various prize tiers,

and the name and iconography all contribute to the character of a game. But, as Jade said when I gave her the chart, “OK. This shows how they are the same; it shows some places where they could be different. That’s something to work with.”

Stephen WadeResearch and Development Manager, Washington’s Lottery and Principal, Lottery Management Consulting, LLC


“If you gamble, use your GameSense.” That is the message Connecticut Lottery players have been hearing since early April when the program was introduced across the state. Connecticut has always been an industry leader in the area of responsible gambling, and GameSense adds an exciting new element to the mix.

Just like lottery games, responsible gambling messages need freshening from time to time, and Connecticut was looking for something different. President and Chief Executive Officer Anne Noble and her team, including Chief of Strategy and Government and Operational Affairs Chelsea Turner, explored different options and found GameSense to be very appealing; it also tested favorably in focus groups. Importantly, because the program was already well developed by the British Columbia Lottery Corp. (BCLC) and was being offered without a licensing fee, it provides a lot of bang for the buck. There was no need to reinvent the wheel.

“We believe strongly that we stand on the shoulders of people who have good ideas,” said Noble. “The Canadians have for years led the way in responsible gambling.”

While exploring its responsible gaming options, Connecticut was also busy getting reach to launch keno, and the timing was right to introduce the two at the same time. “It just seemed like a great opportunity to marry GameSense with keno and really take a fresh approach,” said Noble. “Responsible gambling is a core value of this organization. We believe strongly that as our gaming expands, we want our commitment to responsible gaming to expand and to remain fresh.”

The new program is being integrated with Connecticut’s existing

responsible gambling and corporate social responsibility programs, and won’t replace the tried and true ‘Please Play Responsibly’ campaign. “GameSense just adds another layer and a different approach, to make an even broader audience for us,” said Vice President of Marketing and Sales Diane Patterson, who noted that the television ads created by BCLC are cute and funny. “Who would think you could do that on a serious topic like responsible gambling? But that use of humor kind of beaks the ice and allows people to lower their defenses and say, ‘OK, let me engage my GameSense,’ so it really is pretty exciting.”

Proactive benefits

GameSense talks about responsible gambling in an upbeat, proactive and real way – not the gloom and doom you sometimes hear on the topic. The goal is to engage people before they have a problem, to get them thinking about their habits and learning how to make good decisions. “We want to talk to the same generation of people that we want to play the lottery,” explained Noble – the emerging demographic, for example, that might find keno appealing. “We want to encourage them to play in a sustainable, healthy way.”

After all, GameSense is all about making informed choices, and informed gamblers are gamblers who play for fun, not for money, and know when to stop. It can take many forms – printed educational materials, online and digital elements and on-site kiosks. The latter work well in casino environments, and BCLC uses these throughout its gaming properties. The Connecticut Lottery has different needs, so it has taken some of the traditional brochures – which will be showcased in retail environments – and adapted them to the restaurant, bar and club environments in which keno is played. For example, there is information on coasters and on a small piece designed to fit into players’ pockets.

Still, GameSense really shines online – with the messages communicated directly to players through digital and social media. GameSense is displayed on the consumer displays at all retail locations, and on keno monitors, information is shown between games and also displayed overnight when the gaming system is offline. “New products require different thoughts, so we are blending traditional and new ways of advertising,” said Patterson.

“Our keno monitors are 42 inches,” added Noble. “I don’t think we’ve ever displayed a responsible gambling message on a 42-inch monitor. It is far more prominent than anything we have ever done.”

GameSense comes to ConnecticutThe Connecticut Lottery is the first U.S. lottery to license GameSense, a unique responsible gambling program developed by the British Columbia Lottery Corp.

By Patricia McQueen


All of these things help further develop GameSense – for Connecticut, for BCLC and for its other licensees: Alberta Gaming & Liquor Commission, SaskGaming, Saskatchewan Indian Gaming Authority, Manitoba Liquor & Lotteries and the Massachusetts Gaming Commission.

“It’s been really great synergy in terms of our relationship with BCLC,” said Turner. “We didn’t just take what they’ve done – our marketing department really hit it out of the park. The idea is that we will help each other. Together we are going to create a bigger suitcase, if you will, of tools from which we can each pick and choose. Some might fit Connecticut better, some might fit BCLC better.”

Unlimited potential

Those GameSense tools have generated a lot of positive feedback from all industry stakeholders in Connecticut, from politicians to the treatment community.

“I really like the focus on responsible recreational gambling,” said Tamara Petro, Executive Director of the Connecticut Council on Problem Gambling. She said the GameSense program of player education, which helps them make informed choices, while leading players to help if necessary, is ideal. The emphasis on prevention, before intervention is needed, is important. “That’s something that is really special about this.”

Petro also loves the potential GameSense has to expand to other gaming industry participants in Connecticut, including the tribal casinos and the off-track betting locations. She had already been talking to those operators, and ultimately would like to see it embraced in all of these facilities, creating a strong statewide brand for the gambling consumer no matter what the location. “We were really excited the Lottery took it on,” she said. “Ideally I would love it if every industry player in the state would have some form of GameSense,” said Petro. “There are parts of the campaign that would apply to each industry.”

She is enthusiastic about the potential of GameSense to focus on special populations. BCLC has developed special programming for senior citizens, for example, and is working on a campaign for gaming industry workers. Programming for tribal (First Nations) populations is also on the agenda. To help with these, the organization added an employee who is focused on developing these special campaigns, explained Candice May, BCLC’s GameSense Product Manager. It’s all about finding the appropriate messaging that would best serve specific groups with specific needs.

She noted that for the holiday season, there was also a strong focus on programing to help prevent lottery ticket gifting to minors, which included social media and reaching out to local “mommy bloggers” to get the message out.

BCLC itself is undergoing a transition from focusing simply on awareness – making sure people were seeing the campaigns – to a focus on harm minimization. That means making sure that people not only saw the campaigns but changed their behavior because of them. All this information is now being tracked. “It’s really looking at whether the material we are putting out is relevant and is being delivered in an appropriate manner that is reaching our target audience,” said May.

Everything that BCLC produces these days – from gaming products to responsible gambling messaging – now goes through the “GameSense lens,” so to speak, before hitting the marketplace. And in addition to ongoing work on special populations, the brand is going through a bit of a refresh. “We just want to make sure what we are trying to do with GameSense is aligned with what people expect today,” said May, given that the brand was first introduced in 2009.

She is looking forward to working with the Connecticut Lottery, noting that BCLC’s primary emphasis to date has been with the casino and e-gaming applications of GameSense. “We really want to work with Connecticut to enhance our lottery programming,” said May. “Now it’s time to shift gears and put some harm minimization behind our lottery side of things.” She acknowledged that lottery is a difficult market because of its anonymous play nature – it’s hard to know for sure if you are actually reaching people.

Still, it’s an area critically important for American lotteries, which have embraced responsible gambling like no other gaming industry segment in the country. “We are hopeful that other lotteries will see the economics of GameSense and go along with it,” said Noble. “We think the more people that see the message, the more powerful it will be.”

• Play for fun, not to make money. If you gamble, the result is never certain and not winning is always a possibility. Consider gambling as a form of entertainment, like going out for dinner or seeing a movie, not as a source of income.

• Set a budget and stick to it. Keeping it fun means playing within your means. When you set and stick to a budget, you spend only what you can afford to spend.

• Know how the game works and what the odds are before playing. The more you know about the games, the better equipped you are to make informed decisions before and while you play.

• Know when to stop. Not winning is the cost of entertainment. Wondering if you can win back money by playing more? It’s possible, but unlikely. Stop gambling when you have spent your limit. Don’t try to win more to recover what you have spent.

• Balance gambling with other types of leisure activities. Finding other types of entertainment to enjoy will help make sure that gambling doesn’t become your main activity or too big a part of your life.

• Take frequent breaks. Every once in a while, it’s a good idea to walk away from the game you’re playing. Taking a break can help you make smarter decisions, so gambling stays what it should be – a fun activity.

• Set a time limit before you play. When you make a plan for how much time you can afford to spend gambling (and stick to it), you are more likely to stay within your set budget and not miss out on the other things you need to do.

GameSense tips to keep gambling fun:


NASPL Launches New Website at Lottery Leadership Institute

naspl.org and the NASPL Matrix Redesigned

On April 18 NASPL launched the newly redesigned website, naspl.org, at its 2016 Lottery Leadership Institute held in Cleveland, Ohio.

This effort began as a result of the 2014 Lottery Leadership Institute held in St. Louis, Mo.

“I was listening to these great group presentations on branding the lottery industry,” said NASPL Vice President of Operations Andrew White. “As I was taking notes the information pushed me to think about NASPL and the lottery brand. How do we illustrate all of the good things our employees do on a daily basis? We needed to tell our story to consumers, media and North America. I started putting ideas down on scratch paper. Because of the great job those attendees did, we were able to use at least one concept from each group.”

Shortly after that conference, the NASPL staff came together to figure out how to develop the idea into reality. After researching other outside associations and industry

websites, areas of focus started to emerge. It was determined that all of the industry-related information should be housed on the NASPL Matrix, the association’s password-protected site. As a result, naspl.org became a consumer and media site.

NASPL Graphic Designer John Koenig and Paul Corey, I.T./Software Development, worked hard to create a visually pleasing but user-friendly experience.

“I think the industry now has a variety of useful NASPL tools for daily activities,” said Executive Director David Gale. “We’ve been able to collect and offer research electronically. Webinars, responsible gambling training, Insights magazine and lottery advertising examples are now available at the click of a mouse. It’s great to see how far we’ve come since sending out Fast Faxes to update the NASPL membership. We’ve eliminated the need to print almanacs that release outdated information. Best of all it can all be viewed on a mobile device. The information we collect is now disseminated and available as close to real time as possible.”


Player ProtectionThe Player Protection section promotes security, protection and integrity. It offers consumers of lottery games information on scam alerts, where to report fraud and an informational video to avoid becoming a victim.

Responsible GamblingThe Responsible Gambling sections offers information on RG Events, terms related to problem gambling, a link to the NCPG website and how to use/contact the NCPG Problem Gambling Helpline.

Where the Money GoesThis is a jurisdictional listing of the beneficiary programs/services supported by money transferred from each North American lottery.

Myths, FAQ & History One of the most unique areas of the website, this section contains Debunking Lottery Myths, a Glossary of Lottery Terms, Frequently Asked Questions and a History of North American Lotteries.

About our Members This snapshot of research opens to a main screen containing numbers of retailers, prizes paid to retailers, sales and transfers to beneficiaries for both the United States and Canada. Each lottery profile, containing the same information, can be reviewed. Their respective websites, Facebook pages (if available), and twitter site (if available) can be accessed via live links.

Media Center A one-stop experience for media personnel, the Media Center contains many of the items requested on a daily basis including:

• Frequently Asked Questions• Myths, FAQ & History• Other Lottery Industry Organizations• NASPL Press Releases• Public Relations Contacts• Where the Money Goes

Events Any lottery industry event that appears in Insights magazine is listed under the events page.

Associate MembersA company-by-company listing of NASPL Associate Members includes links to respective websites, officer information, products and services description and contact information. A large number of industry vendors and suppliers are associate members.

There are eight main sections to the new website. They include Player Protection, Responsible Gambling, Where the Money Goes, Myths, FAQ & History, About our Members, Media Center, Events and Associate Members.

For more information or to see the great services offered by your association, visit:

www.naspl.org-OR-

www.nasplmatrix.org

SynergyThe industry personnel website (NASPL Matrix) has also been redesigned to mirror naspl.org It has been created with the same user-friendly feel and includes:

• Past keynote speaker webinars• Responsible gambling tools• NASPL Resource Index with the most current sales data available• Past NASPL conference presentations• Insights magazine issues• Advertising award entries and winners• Job postings


The NASPL Professional Development Seminar is a unique event designed to bring together lottery industry employees at all levels in a small-group, hands-on format. Workshops cover the primary disciplines in the industry accounting, audit, game developers, information technology, legal, product managers, public relations, research, sales and marketing, and security. The format allows for candid discussions and information-sharing among participants, and provides attendees with tangible ideas about how to take advantage of the industry's biggest opportunities and find solutions to its biggest challenges. There is no better way to promote communication within the lottery industry, provide education through real-world problem solving, hear case study presentations and experience unsurpassed networking opportunities.

New this year:GAME

DEVELOPERS

Join us inPittsburgh


naspl professional development seminar

Register Now!www.nasplprofessionaldevelopment.com

NASPL 2016 Professional Development SeminarAugust 2-5, 2016Pittsburgh, PA

wwww.nasplprofessionaldevelopment.com Lottery Member: $650Associate Member: $775Non-Member: $875


Draw-based games are important to the lottery industry for a variety of reasons, but there are many challenges lotteries face to keep sales growing. Lotto game design to encourage larger and larger jackpots can work, but it also creates ever-increasing consumer expectations. New games take time to develop and it’s hard to know what will click with players; add-on games and promotions are easier paths to stimulate short-term interest that will hopefully translate to long-term growth. On the following pages, you will read about a lot of things happening on the draw side of the industry, including strategies lotteries have shared to address the challenges. We thank these lotteries for their participation.

INSIGHTS PRESENTS:


Draw-based games. Terminal-based games. Lotto games. Jackpot games. Lotteries have struggled

to come to a consensus as to what to call this group of products after losing their beloved “online” nomenclature to the world wide web. Whatever you call them, they provide lotteries with high-profile games (what could be more high profile than a $1.6 billion jackpot?) that generate more profit per sales dollar than scratch tickets.

Of course the challenge, short of those high jackpots that keep raising consumer expectations, is how to keep pace with the “new and improved!” and instant gratification world we live in. Not to mention finding enough niche games to help smooth out the natural ebb and flow of jackpots.

In FY15, sales of the primary draw-based games in the U.S. were $24.8 billion, a decline of 3.1 percent from the $25.6 billion reported in FY14. These include just about every game there is (see chart) but for raffle games and a handful of highly specialized games like bingo or tic tac toe style products in a couple of jurisdictions each.

As a group, daily numbers games brought in $9.9 billion in sales, up $321 million or 3.3 percent over FY14. Together, Powerball and Mega Millions sales were just shy of $6.7 billion (not including sales outside the continental U.S.), down $1.4 billion or 17.4 percent. As bad as FY15 was for these two

national games, FY16 will be good thanks to the billion dollar Powerball jackpot in January.

Other lotto games and monitor games were about equal at $3.7 billion for each category; lotto game sales were down 4.8 percent while monitor games (primarily keno) were up five percent. For the purposes of this discussion, “lotto” includes all in-state games and a few small multi-state games.

Then it’s a long way down to the next group of games, indicative of the challenge of looking for that “next big thing.” With the spread of Lucky for Life and Cash4Life, the “for life” category came in with $327 million in sales during FY15, up 207 percent with 21 states reporting, compared to 10 in FY14. At this writing, there are now 26 lotteries offering these games. Terminal-based instant games, most commonly called Fast Play but with other monikers as well, produced $204 million in sales in 12 jurisdictions, up 38 percent.

The long-running Hot Lotto, primarily offered by smaller lotteries, was up 8.4 percent to $95.8 million in sales with 16 participants. And the relative newcomers, hybrid games and All or Nothing, each checked in with about $90 million in sales, up 11.5 and 10.3 percent, respectively. Seven lotteries offered each of these game types in FY15; two new jurisdictions have recently added a hybrid game. Finally, daily keno was offered by five lotteries in

FY15, with $64.3 million in sales, down 2.5 percent.

In total, about 37 percent of traditional lottery sales in the United States come from gaming system terminals in one form or another. Instant games may bring in more sales, but they also contribute less profit as a percentage of those sales. So draw-based games are critically important in the never-ending need to increase revenues to beneficiaries.

They are just as important in Canada, but perhaps for a slightly different reason. There, instant games haven’t reached the volume seen in the United States – just 30 percent of traditional game sales compared to 63 percent in the U.S. So draw-based games are a much bigger part of the portfolio, and Canadian lotteries must deal with the whims of the jackpots even more so than their American counterparts and focus on new ways to grow sales.

Daily numbers games

The venerable daily numbers games – from two-digit to five-digit – upon which many lotteries depend a great deal, are doing quite well by all signs. Thirty-five of the 41 lotteries which offered them last year reported gains, some of them substantial.

While most American lotteries offer both three-digit and four-digit games, only four offer a five-digit game and just

Lucky Numbers

Draw-based games may lack the pizzazz of their instant counterparts, but as we all saw in January, there’s nothing like an enormous jackpot to capture the attention of the entire world.

By Patricia McQueen


one (Pennsylvania) currently has a two-digit game. In Canada, most lotteries offer either a three or four digit game, but not both, although Ontario has two-, three-, and four-digit games.

Daily games have usually been similarly branded by lotteries (i.e., Cash 3 and Cash 4, or Pick 3 and Pick 4), but in some cases developed over time with different names, like Pick 3 and Daily 4. The Pennsylvania Lottery last year eliminated that difference in an effort to take advantage of a single new “Pick” brand for marketing purposes and introduced a two-digit game to complete the four-game numbers lineup.

“While we never intended for Pick 2 to be an aggressive sales performer, we did hope that it would attract new players seeking a simple and fun play experience,” said Executive Director Drew Svitko. “Overall, rebranding our numbers games as Pick games has enabled a more coordinated marketing strategy and also allowed us to conduct second-chance drawings for these games. All of these factors have contributed to moving our numbers game sales in a more positive direction.”

The Florida Lottery in August will be following Pennsylvania’s example, rebranding its Cash 3 and Play 4 games into a full Pick family, adding a Pick 2 and Pick 5 game.

Many lotteries take advantage of add-on games to provide

new options and winning experiences for daily numbers games, and the introduction of these options often triggers strong sales growth in the base game with the benefit of additional dollars from the add-on purchase.

Add-on games

Add-on games are popular around the industry on just about all draw games, in fact. They are a fairly painless way to add value to a game or refresh a game without having to change the underlying matrix.

At least 38 lotteries in the U.S. offer one or more add-on games, not counting the multipliers offered on Powerball and Mega Millions in most jurisdictions. They may be instant-win games, multipliers, extra draws or other additional winning opportunities. All Canadian lotteries use spiel games, on national lotto games but on regional games as well. They are a significant percentage of game sales in the country, much more so than in the United States.

As of early May, 11 lotteries were offering add-ons for their daily numbers games, 27 have them on one or more lotto games and 15 of 16 lotteries with monitor games offer some sort of multiplier or bonus option. Some lotteries also have

FY14 FY15 Change

# of Lotteries Sales # of Lotteries Sales Dollars Percent

Daily Numbers 41 $9,593.3 41 $9,914.4 $321.1 3.3%

Powerball* 44 4,827.2 45 3,950.3 (876.8) -18.2%

Lotto** 43 3,893.8 45 3,706.8 (186.9) -4.8%

Monitor Games 15 3,484.7 15 3,660.1 175.5 5.0%

Mega Millions*** 44 3,242.0 45 2,718.5 (523.5) -16.1%

For Life Games 10 106.5 21 326.8 220.3 206.9%

Terminal-Based Instant Games

11 147.8 12 203.9 56.1 38.0%

Hot Lotto 16 88.3 16 95.8 7.4 8.4%

Hybrid Games 6 81.2 7 90.6 9.4 11.5%

All or Nothing 6 81.2 7 89.5 8.3 10.3%

Daily Keno 5 65.9 5 64.3 (1.7) -2.5%

Total Selected Draw Games

$25,611.8 $24,821.0 ($790.8) -3.1%

Selected U.S. Draw-Based Game Sales (Dollars in millions)

* Powerball is also sold in Puerto Rico and the Virgin Islands; not included in these results. ** All lotto games not otherwise listed separately. *** Mega Millions is also sold in the Virgin Islands; not included in these results.


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special features, such as a periodic doubler or a designated day of the week to offer more prizes at no extra charge.

When asked about add-on games, lotteries offered a diversity of opinion. Most lotteries are happy with their offerings; only a few reported minimal success. It is clear that add-ons do much better when launched at the same time as their host game – it takes a lot of effort to get player pick-up when added to an existing game. That said, the general consensus is that add-ons generally provide a good source of incremental revenue no matter when they are introduced, and allow lotteries to enhance current products without building an entirely new game.

A brief sampling of comments from lotteries about their experience with add-on games follows.

Idaho Lottery: In February, Sum it Up! Was added to Idaho Pick 3 for an extra $1; players can win not only if they match their numbers, but if the sum of their numbers matches the sum of the drawn numbers. It has been an incredibly successful addition to the game, increasing Idaho Pick 3 sales by more than 23 percent after 12 weeks in the market.

Louisiana Lottery: The instant win EZ Match option was launched at the same time as its host game, Easy 5, with the result that 35 percent of Easy 5 sales include the added EZ Match purchase.


Maryland Lottery: Add-on games are particularly popular with players of the state’s two monitor games, Keno and Racetrax, where for an increased wager, winnings can be multiplied as much as 20 times. They have high participation rates – Keno Bonus and Keno Super Bonus account for approximately 10 percent and 38 percent, respectively, of total keno sales; Racetrax Bonus sales account for approximately 14 percent of total Racetrax sales.

Missouri Lottery: EZ Match was added to Show Me Cash in 2011, and winner awareness and great chances to win (1 in 4.21) are keys to success for this add-on feature. Winner awareness is driven home at the lottery retailer terminal whenever a winning EZ Match ticket is produced, since a special tune plays as the winning ticket is printed.

New Jersey Lottery: XTRA was added to Pick-6 lotto in January 2015, multiplying non-jackpot prizes and adding a $2 prize for matching only two numbers, improving overall odds from 1:54 to 1:7. That gives something back to the most loyal players as they dream about a jackpot win. In fact, players like XTRA so much that the Lottery is considering adding it to Jersey Cash 5 as well. “We hope XTRA will continue to grow and expand our core player base across our draw game portfolio,” said Executive Director Carole Hedinger.

North Carolina Education Lottery: The add-on games SUM IT UP (on Pick 3 and Pick 4) and EZ Match (on Carolina Cash 5) help to keep in-state draw games, now going into their 10th year, fresh and fun. The additional revenue also boosts overall sales. For example, the addition of EZ Match resulted in a nine percent increase in overall Carolina Cash 5 sales at a time when that game had not experienced significant growth for a couple of years.

Ohio Lottery: A long-time proponent of the Kicker add-on, Ohio paired this option with Classic Lotto in 2012. The payout percentage has been 39.34 percent, so the game has been profitable, and Kicker sales as a percentage of Classic Lotto sales has been trending up. There has also been great success with Booster, a multiplier for keno, with double-digit growth since inception. Booster sales averaged 32 percent of keno sales in FY15; that percentage has edged up to 33 percent in the current fiscal year.

Texas Lottery: Player familiarity with the multipliers for Powerball and Mega Millions made it easy to introduce add-on games for other products, and Texas currently offers Extra! on Lotto Texas and Sum It Up! on the daily numbers games. Players understand the additional winning opportunities for their extra $1 per play. Extra! has experienced positive sales growth every year since its introduction in 2013. Sum It Up!, launched with Daily 4 in 2007 and later added to Pick 3, is an easy to understand add-on game that is unique in that you can win without winning on the base game. “When you consider the benefits that the add-ons provide to players – increasing prize amounts, providing additional opportunities to win, etc. – and couple that with the sales levels and that their prize payouts are consistently around 50 percent, these add-ons are strong contributors to the Texas Lottery’s revenue generated for the Foundation School Fund in Texas,” said Executive Director Gary Grief.

Terminal-based instant games

Some add-on games offer an instant-win component, recognizing the importance of instant gratification to today’s consumer. As lotteries look to add some of the strengths of scratch tickets to their draw game portfolios, terminal-based instant games are starting to come of age. With improved ticket printing capabilities, multiple themes and the technology to better manage those themes, and higher average payouts than other draw-based games, this category has a lot of potential.

Just ask Rodney Paige, Strategic Development Analyst for the DC Lottery, which has embraced these games, called Fast Play in its market. Well, the players have embraced them, purchasing more than $17 million in Fast Play tickets in FY15. Fully eight percent of the Lottery’s sales in FY15 came from Fast Play, more than any other lottery in terms of market share, and DC is working hard to keep that number strong and growing. Indeed, many of the innovations in this category are being utilized by the DC Lottery.

On average, 17 to 21 Fast Play games are on the market at any given time, although a current refresh of the self-service MP terminals from Intralot will not only make the graphics pop, it will make it easier to have more games available. The whole display layout will change, so players can easily view and select games – for example, by theme or by price point, or choose only seasonal or jackpot games. Price points range from $1 to $10; a $20 game


is scheduled to launch in June. The $5 price point is the most popular. Prize payouts are a bit higher than those for scratch tickets, and range from about 68 percent on $1 games to 82 percent on $10 progressive jackpot games.

Jackpot games are a major driver of Fast Play success for DC, with the $1 Flaming Hot Dice and DC Jackpot, which has three price points – $2, $5 and $10. DC Jackpot alone accounts for 55 to 60 percent of Fast Play sales in the city. “Our Fast Play sales are really dictated by that jackpot,” said Paige. “I love it when the jackpot gets up there because it means we’re going to have a good sales week.”

DC is also working hard to offer more seasonably relevant games – such as sports-themed games at times when interest in certain sports is highest, or holiday-themed games.

The biggest challenges for Fast Play are the product’s “invisibility” and the limitation of black and white graphics. Unlike scratch tickets, which are displayed at retail, Fast Play games hide in the terminals, only to be seen when purchased. DC promotes its new games using keno and Race2Riches screens along with the player advertisement


displays at retail. The Lottery also has just introduced new play stations, which have a space dedicated to Fast Play POS material to provide more opportunities to build retail awareness.

Although limited to black and white graphics, DC tries to make the graphics as bold as possible, drawing attention to the games. “Some of the newer tickets really pop,” said Paige. “We think that helps us.”

The biggest potential boost could come from a work in progress – licensed products. Eight branded games are currently in the works, subject to contract approval by the powers at be in DC. “Once we get these games in market, we believe they are really going to take our Fast Play sales to another level,” said Paige. The brands were chosen with the help of an online players club survey asking about brands and licensed products. The games are expected to launch in FY17.

All of these strategies are factors in DC’s success with Fast Play. “Keeping it fresh and staying on the cutting edge is important,” said Paige.

New game concepts

Hybrid games take Fast Play style games a step further, adding a later draw component to provide two chances to win with every ticket – a few lotteries have adopted this game format (see separate article beginning on page 44).

Lotteries continue to look for other games to fill gaps in their lineups, provide some sense of stability without wild jackpot swings, offer novelty themes to attract a small but dedicated player base, or tempt players with innovative play styles. While some games don’t always work, that shouldn’t restrict continued innovation. And what doesn’t work in one jurisdiction may work very well in another. Still, expectations need to be managed – these games are likely small revenue producers that serve specific goals.

One such innovative game is All or Nothing, first launched by the Texas Lottery in September 2012. Developed to address player disappointment when they don’t match any numbers in a lotto game, All or Nothing has an hourglass matrix where the top prize is won by matching all numbers drawn or none of the numbers drawn. For Texas, the game provides great opportunities to win a prize – 1 in 4.5.

All or Nothing’s debut was “a significant point in the evolution of the Texas Lottery’s draw game portfolio,” said Grief. It was the first draw game to be drawn in Texas four times daily, greatly expanding the frequency that lottery players could participate in a lottery draw game. It was also the second draw game in Texas (after Powerball) to be offered at a $2 price point. The game was recognized in 2013 by NASPL as the industry’s Best New Draw Game.

Due to its unique matrix structure, price point and draw frequency, All or Nothing is an important niche game in the Texas portfolio. While core games such as Powerball, Mega Millions, Lotto Texas, Texas Two Step, Pick 3, Daily 4 and Cash


Time for EquiLottery?

And now for something completely different. Well, not so much if you remember that the very first modern lottery in the United States (New Hampshire) was based on the results of a horse race.

Of course, times have changed since then, and horse racing has declined as an industry. But a lot of that is due to the challenges of handicapping the races and betting that is just too difficult in this era of quick picks and push-button slots.

EquiLottery aims to change all that, for the good of both the lottery and racing industries. The brainchild of Founder and Chief Executive Officer Brad Cummings, EquiLottery recently entered into an agreement with IGT Global Solutions Corp., allowing IGT to offer its unique game to current and potential lottery customers as an established game and software solution. “IGT is the global leader in lottery services and this arrangement shows their commitment to growing the industry through third-party innovation,” said Cummings when the agreement was announced. “We are excited to pursue our goals of increasing support for lottery good causes and creating a new way for players to experience the thrill of live horse racing.”

The game is a daily $2 draw based on the results of a live horse race. Each EquiLottery quick pick ticket represents a three-number bet with horse numbers and names listed. The video of the daily live race may be delivered through a mobile app, website and in-store retail monitors, appealing to all demographics, especially the millennial generation.

That was the conclusion of both qualitative and quantitative studies done in Kentucky by Ipsos last year. Projected player appeal and spend scores make EquiLottery a viable game for state lotteries searching for ways to increase lottery profits and appeal to new player bases. In the qualitative study, participants thought the live horse racing event felt “more authentic” than traditional lottery games, and “more exciting than watching three ping pong balls coming out of a machine.” Retailers loved the idea of showing live horse races in their stores.

In the quantitative study, EquiLottery appealed to both lottery players and non-lottery players, with strong interest from non-players. Depending on awareness levels, first year sales projections range from $18 million to $54 million, with a “high potential for stickiness” and limited cannibalization, according to Ipsos. Study participants liked the entertainment value, the ability to view races on a mobile app, good chances to win prizes and the differentiation from other lottery products. Not surprisingly in Kentucky, they also liked that some revenue from the game goes back to support the horse racing industry.

“Our vision for EquiLottery has been to deliver an innovation to the lottery industry that appeals to new and existing customers by bringing the excitement of live horse racing to millions who have not previously been exposed to it,” Cummings said. “We have never been closer to making this vision a reality and look forward to what the future holds for our game.”

5 have a very long life cycle, niche games are important as a means to reach lapsed players and new players and introduce them to lottery drawing games, explained Grief. “The challenge with niche games is that they may have a significantly shorter product life cycle than core offerings and may require replacement more frequently. While All or Nothing continues to support the overall health of draw game sales, the Texas Lottery remains vigilant in pursuing new draw game opportunities in the niche category that might one day replace existing niche game offerings in the portfolio.”

Other lotteries have had mixed results with All or Nothing; the Illinois Lottery launched a similar game called Hit or Miss in September 2013 and discontinued it in February 2015.

The “for life” category of games, led by Lucky for Life and Cash4Life, resurrect an old industry idea and seem to have found their niche this time around. There is strong appeal for their prize structure, with a top prize of $1,000 a day for life. That’s a number the general public can appreciate – not stratospheric and almost incomprehensible like $1.6 billion.

Lotteries and their vendors keep looking towards the future. They are exploring ways to skin games to make it easier to change the theme or appeal to maintain the appearance of “newness” in a draw-based game. That said, the underlying game structure has to be understood – and liked – by the player or no amount of dressing will make them purchase tickets.

There may also be a big future in attaching licensed property brands to draw-based games, as the DC Lottery expects with Fast Play. We’ve already seen popular brands used in the Tap ‘n Play games in a couple of jurisdictions, and they have been very good for sales. Ontario’s use of the Wheel of Fortune brand in one of its Watch ‘n Win hybrid games has also borne fruit.

In the end, jackpots do drive sales, but there’s a whole lot more that can be done on the draw-based side of the business than just sitting back and waiting for the luck of the draw.


TESTING DRAW GAME CONCEPTS IN NORTH CAROLINAQ&A with Randy Spielman, Director of Product Development, North Carolina Education Lottery

When a lottery considers launching a new draw game, it’s important to know if the game will prove popular with lottery players. The North Carolina Education

Lottery recently faced that question as it studied what new draw game to start in North Carolina. For help, the Lottery employed for the first time a type of research designed to test not only new game concepts, but how a new game will impact others that are already in the market. Director of Product Development Randy Spielman talks about the research effort and how it helped North Carolina.

What was the new research method and what were the questions you wanted to answer?In April 2015, as the North Carolina Education Lottery considered adding a new draw game to its portfolio, we decided to try for the first time a type of concept testing known as a Total Unduplicated Reach and Frequency study. That’s TURF for short. We had five new game concepts we wanted to research and test with players. We also wanted to answer some additional questions. Will adding a new draw game significantly increase overall draw game sales? If so, which of the new game concepts will add sales by broadening the reach of our overall draw game portfolio? And which new concepts would provide the most incremental sales growth? It’s possible, we knew, to have a new game launch, but not see overall draw game sales grow.

Where did you learn about this research?We were not sure if other lotteries had tried this yet. But Frank Suarez, our Deputy Executive Director of Brand Management and Communications, had employed this research before in his previous work for brands in the consumer packaged goods and restaurant industries. It can be particularly helpful for companies with a large portfolio of well-established consumer products. If you think about it, lotteries with large portfolios of games are in the same situation.

Who did the research?The lottery issued an RFP for the kind of research we were looking for. Four companies bid. And we picked REPASS, a Cincinnati firm, to work on the research project.

How was the research done?REPASS did a two-week web-based survey of about 1,000 participants and provided the analysis of the results. Those surveyed included lapsed lottery players and current lottery players that play with different degrees of frequency. The research tested 11 game concepts, including the six draw games the lottery already marketed and five new concepts. One assumption, however, was that five of our existing draw games – Powerball, Mega Millions, and our Pick 3, Pick 4 and Cash 5 games – would stay in the portfolio. While the research allowed us to identify what overall mix of draw games was optimal, at this time we were only looking to identify the best game to add to our current portfolio.

What were the main things you learned?Two findings were particularly helpful to us. The research helped us see that a portfolio of six draw games would be the most successful for us at this time. It showed that based on the concepts we tested, the additional reach and sales generated for games beyond the sixth would not justify the additional expense associated with supporting those games. Therefore, our portfolio will consist of six games at the start of our new fiscal year. And it indicated the game that would be most likely to improve both our sales and reach was the Lucky for Life draw game. We launched that multi-state game in February and we’re pleased so far with the results.

What limitations, if any, did you find with this kind of research?The research is only based on the concepts you provide for testing. There could be concepts that were not included that may broaden reach and drive new sales. Each time a new game is being considered that was not part of your original test, all concepts have to be tested again, both current games and new games. This will provide an updated, optimal mix of games.

Will you employ this kind of research again?Yes. We were ready to move beyond the issue of what the next best game is. We don’t want to just be moving money around. Our goal is to build the best portfolio of draw games we have for the markets that we serve. Over time, smart management of our entire game portfolio should ensure our continued success with providing fun and exciting games for North Carolina lottery players.

INSIGHTS May/June 2016 43www.scientificgames.com Gold FishTM and © 2016 Scientific Games Corporation. All Rights Reserved.Gold FishTM and © 2016 Scientific Games Corporation. All Rights Reserved.

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Our analysis of the data reveals just how effectively this

particular jackpot caught the market by storm, drawing in record numbers and revealing new opportunities to grow and reach new players. In order to better understand the success and penetration of this particular Powerball jackpot, our Lottery and Gaming practice at Ipsos undertook a survey of Americans to look for trends, behaviours, purchasing tendencies and marketing avenues to attract new players. The results of our analysis, while affirming Americans’ habits to be enticed by larger jackpots, also indicated a shifting landscape being driven more and more through the

HARNESSING THE POWER OF POWERBALL

As far as jackpots go, this one was a whopper. Every news outlet in North America covered the story for days and weeks leading up to it. Millions of Americans who had never played the lottery before jumped into the mix. Record numbers of Canadians

cross-border shopped to buy tickets, spurning a late night ribbing from Stephen Colbert. Tension mounted when the winners did not come forward at first after the numbers were announced. When the dust finally settled, three winning Powerball tickets split the $1.6 billion prize—the largest jackpot of all time—and the fever-

pitched excitement that had been brewing for weeks finally ended.

By Paul Lauzon and Jason Allsopp, Ipsos Reid


media, both traditional and social. The potential is there to expand the market reach of smaller jackpots, lower-tiered prizes, and to focus marketing efforts on attracting new and peripheral players.

Getting the Powerball Rolling

By the time it was all said and done, 60 percent of Americans had played in the $1.6 billion Powerball. That means almost 200 million people got in on the action, half of whom spent between $11 and $100 during the two month timeframe. Many of those people tried to maximize their chances of winning by participating both individually and in groups. In fact, 30 percent of all players surveyed diversified their approach by playing in both camps, while 5 percent played in groups only, and 64 percent played on their own.

The data indicates that many previous non-players were drawn to this large jackpot, and that more regular players opted to spread their spending across group and individual play, in order to cover their bases for better odds. This tendency to embrace group purchasing seems to be associated with the size of the jackpot, since the winners would still be splitting a substantially large sum of money among the group.

New Players in the Game

As we mentioned previously, the enormity of this jackpot was too tempting for the majority of Americans to pass up. In fact, 12 percent of players had never purchased a Powerball ticket before—extrapolating that number to the entire US population means 7 percent of Americans bought the first Powerball ticket of their lives in the lead up to the January 13 jackpot. Lapsed players—individuals who have not played in more than 12 months—also came back in significant numbers, representing 21 percent of all players in the lottery. But what about the 40 percent of Americans who did not play? While a significant number of them—74 percent according to our data—have never played, 20 percent have played in the past, meaning there is potential to grow Powerball penetration by re-attracting some of those players.


Anticipated Future Play

On any typical month, nearly one third of Americans expect to play Powerball at least once. About 10 percent will play less frequently, while 25 percent typically would hold off until the jackpot is high. Of the 40 percent of Americans who did not play in this Powerball, seven out of 10 say they will never play. While we expect future core playership, and abstinence, to remain relatively consistent over time, there is an opportunity to leverage the excitement of more casual and peripheral players, many of whom jumped in with the recent jackpot roll, by creating messaging that brings them in at lower jackpot roll levels.

Betting on a New Market

In our survey, two thirds of respondents indicated that they would start playing Powerball when the jackpot reaches the $40 – $300 million range, with another 20 percent getting in before the jackpot hits $500 million. Interestingly, more than half of the respondents who did not play in the $1.6 billion Powerball would have played had they known about the size of the jackpot. In fact, those same respondents would play for jackpots in the $40 – $100 million range, provided they had any knowledge of them. While it is difficult to grasp how some respondents were not aware of the incredibly large jackpot given the significant earned media supporting Powerball during the weeks leading up to this draw, it certainly presents a challenge to many lotteries in how to communicate with these types of potential customers.

Between casual players who might be interested in playing more frequently for smaller jackpots, and the millions who say they would play if only they knew about the jackpots in the first place, we see an opportunity to attract new players through targeted messaging that finds a way to reach them. According to our data, once the jackpot exceeds $100 million, there are millions of Americans who really want to know about it. States could be missing out on significant sources of revenue simply because people weren’t aware of the jackpot, or weren’t made to feel excited about it.


Dividing Up the Pie

When the survey turned to how respondents would like to see prize money distributed, a strong majority (81 percent) of Americans said that when the jackpot reaches $1 billion, they would prefer it if the money were spread across multiple prizes, rather than to a single winning set of numbers. Past data indicates that what really makes lottery tickets sell is a big jackpot, and the altruistic results of focus groups and surveys may not be an accurate reflection of how people actually behave when the jackpot swells.

That being said, every Powerball has thousands of lower-tiered prizes, some amounting to significant prizes for the winners. What if these prizes were given more attention from marketers during a large roll pattern? Such efforts could appeal to people’s altruistic sides — this idea of multiple winners of significant amounts — and attract some of the more than 80 percent of Americans who would prefer multiple prizes over a single amount.

Reaching out to these somewhat disparate groups of casual players, non-players and players who say they’d prefer a more shared lottery, could pay off. Most lotteries claim that after a certain jackpot, they step aside and let traditional and social media take over, but in so doing who are they missing out on? Based on our results, quite a large number of potential and peripheral players are not receiving the messaging they need to play. Promoting the smaller jackpots and the lower-tiered prizes could open new seams that lead to new players and even more excitement — seams that are not currently being targeted effectively.

Concluding Remarks

By the time the Powerball winning numbers were announced on January 13, 60 percent of the United States population had taken a shot at billions. New players had jumped in. Players who had sat on the fence for months and years had bought tickets. By every account it was a success. But our data indicates that while the numbers are impressive, there is room for potential growth, specifically with casual players and would-be players who are simply out of the loop. We have also noted that promoting the Powerball’s lower-tiered prizes could appeal to the majority of Americans who say they would prefer multiple smaller prizes over the current single prize format. While there is no question that as the jackpot rises, so too does playership, we see the market for even more, and for the Powerball lottery to roll to its full potential.

Methodology

These are findings from an Ipsos Lottery & Gaming study conducted from January 15 to 19, 2016. For the survey, a sample of 1,000 Americans was interviewed online. The precision of online polls is measured using a credibility interval. In this case, the poll has a credibility interval of plus or minus 3.5 percentage points. For more information about credibility intervals, please visit the Ipsos Public Affairs section of our website [http://www.ipsos-na.com/dl/pdf/research/public-affairs/IpsosPA_CredibilityIntervals.pdf] at www.ipsos-na.com. The data were weighted to the general population of the United States by region, gender, and age. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error and measurement error. Where figures do not sum to 100, this is due to the effects of rounding.

About the Authors

Paul Lauzon is Senior Vice President and Managing Director with Ipsos Reid and head of the firm’s Lottery & Gaming practice that employs more than 10 full time lottery researchers. Based in Calgary, Paul leads the team of research experts dedicated to serving the market research needs of lottery and gaming organizations across Canada and the United States. Paul can be contacted at [email protected] or 403.294.7386.

Jason Allsopp is a Vice President with Ipsos’ Lottery & Gaming practice. Based in Vancouver, Jason is part of a team of research experts dedicated to serving the market research needs of lottery and gaming organizations across Canada and the United States. Jason can be contacted at [email protected] or 778.373.5035.


ORCHESTRATING LOTTO SUCCESS – WITH A LITTLE LUCK – IN CANADA

Canada’s two national lotto games soared in FY16, with a number of factors contributing to a miracle year.

By Patricia McQueen


A year ago, both American and Canadian lotteries could be excused if they were scratching their proverbial heads wondering what was going on with jackpots – or NOT going on, as FY15 was a sub-par jackpot year for the national games in both countries. As a result, these highly jackpot-driven games experienced double-digit sales declines just about everywhere you looked.

FY16 is proving to be a totally opposite experience. Of course Powerball’s $1.58 billion jackpot in January was a game-changer, but Canada’s lotteries were not to be denied their moment of glory. With a year ending March 31,

Canada’s results are already in, and they are astounding. Across the country, the two national games Lotto 6/49 and Lotto Max were up a total of 33 percent over FY15. Combined sales were C$3.86 billion, a new record for Canada’s national lotto games and their best year since FY11. (All remaining dollar amounts in this article refer to Canadian dollars.)

“In the last two years we have seen the bane and the boon of how jackpot roll patterns can affect the business,” said Ken Schulzke, Vice President, Marketing Strategy and Advertising, for Western Canada Lottery Corp., which registered an eye-popping, and country-leading, 40 percent sales increase in “big lotto” – the national game category that includes the two games. That went a long way towards an overall 20 percent sales increase for WCLC compared to the previous year.

But FY16 wasn’t all about luck – changes in various elements of the games had been implemented since 2013 and everything just fell into place. “It’s a good thing when strategy, design and luck all come together,” marveled Schulzke. The strategy and design elements included a relaunch of Lotto 6/49 to include a guaranteed $1 million prize in each drawing and periodic Super Draw promotions, along with an increase in the maximum jackpot for Lotto Max. Even something as simple as extending the sales period by 90 minutes on draw days factored into the equation – tickets on draw nights for all Canadian lotto games are now sold until 10:30pm ET instead of 9:00pm ET. “It was a subtle thing but

it was very powerful,” said Schulzke about the sales window change.

Built-in opportunities

When Lotto 6/49 was relaunched in September 2013 at the $3 price point (up from $2), it included a feature that provides players with additional value for their extra buck – a $1 million guaranteed prize draw for every drawing. A unique identifying number is printed on each ticket sold, and one of those numbers will win $1 million in each drawing. That game structure also allows for Super Draws – periodic promotional drawings where there are additional guaranteed winners for even more prizes. The Super Draw promotional concept is nothing new, as other lotteries around the world have found value in that structure.

There were two other changes to the game – the base jackpot was raised from $3 million to $5 million, and a new prize category was added; players can now win a free ticket by matching just two of the six numbers drawn.

“The game change was a success,” said Lou Pagnotta, Director of Marketing, National Games, for the Ontario Lottery and Gaming Corp., and Chair of the Draw-Based Games Committee of the Interprovincial Lottery Corp. “It did what it was supposed to do and added a little more energy to the game.”

Of course it didn’t hurt that Lotto 6/49 reached a Canadian record $64 million jackpot in October 2015, a highly improbable sum for the population base and game design, and had many more than anticipated jackpots at the $20 million level during the year. There’s nothing like a little luck in a lotto game!

The Super Draw promotions, though, were planned elements that paid off handsomely. During FY16, there were four Super Draws:

May 9, 2015: Two extra guaranteed prize draws for $1 million each, for a total of three guaranteed $1 million prizes for the drawing.

November 25 and 28, 2015: Every Lotto 6/49 ticket sold for these drawings had a chance to win not only the guaranteed $1 million prize, but six additional guaranteed $100,000 prizes and 49 additional guaranteed $10,000 prizes.

December 23 and 26, 2015: Four extra guaranteed $1 million prize draws, so every Lotto 6/49 ticket sold for these drawings had a chance to win one of five guaranteed $1 million prizes.


February 13, 2016: Fourteen extra guaranteed prizes of $100,000 were offered in addition to the $1 million guaranteed prize draw.

“We structure Super Draws around themes and high retail traffic days,” explained Pagnotta, like Black Friday, the Christmas holidays and Valentine’s Day.

One thing the guaranteed draws – and Super Draws – do is help create more winners, especially big winners, and spread them throughout the country. The common complaint from players on any big multi-jurisdiction game is that winners are “always” from the larger participating jurisdictions. “Since the game changes have been put into place, Atlantic Lottery has experienced three times more million dollar winners,” said Atlantic Lottery Senior Manager, Jackpots and Regional Games, Shannon French-Demille. “These winners, combined with our strong media support of them across Atlantic Canada and hyper-locally, have resulted in strong sales and player participation rates for the brand.”

Putting the “Max” back into Lotto Max

Luck and strategy also paid dividends for Lotto Max. After a second-year peak in FY11, Lotto Max sales steadily declined, falling from $2.1 billion in FY11 to $1.4 billion in FY15. But it roared back in FY16, recording almost $2.2 billion in sales. There’s no denying luck contributed to that result, but also fortuitous was a change implemented in July 2015.

The change was simple – increasing the maximum jackpot from $50 million to $60 million. At $50 million, a portion of sales still starts generating the MaxMillions $1 million prizes unique to the game. But the jackpot continues to grow until it hits $60 million, at which point all additional sales start funding more and more MaxMillions.

It may not seem a lot by U.S. standards, but for Canada that change was significant. Combined with that incredible luck, “We hit that $60 million a lot more than we anticipated,” said Pagnotta – eight times in fact. When combined with 30 drawings where MaxMillions were in play, rather than the typical 15 or 16 drawings over a one-year period, sales went through the roof.

The move to a $60 million cap was always part of the plan with Lotto Max, explained Pagnotta. “The original game design lets us play with the jackpot amount, as we know that the category requires that from time to time. We could have put all the Max Millions dollars into a big jackpot, but we didn’t want to accelerate jackpot fatigue.” He expects that at some point in the future, the cap will be adjusted upwards again.

New campaigns and product differentiation

With two national games, Canada’s lotteries have done a good job differentiating them in the eyes of consumers. Although Lotto 6/49 is now $3 instead of $2, which brings it a little closer to the $5 Lotto Max, price is still a

Lotteries are trying new and unique advertising campaigns for Lotto Max, like this one from Western Canada Lottery Corp.


The new approach for Lotto 6/49 showcases luck. “We wanted the population to be conscious that luck is a part of their life and plays in their favor everyday,” said Janie Thériault, Department Manager, Marketing Communications. So the Lotto 6/49 campaign shows lucky moments in everyday life with the tagline #You should buy 6/49. “This campaign is a huge success in Quebec.”

Success was clearly the buzzword for Canada’s big lotto games in FY16 – “It was a great ride if you were in the national lotto business,” said Pagnotta. But as the previous year demonstrated, sales could just as easily regress in FY17 – it is always a challenge to follow up a record-breaking year. That’s where strategy comes into sharp focus, and Canada’s lotteries are confident about the path they are on.

differential. Lotto 6/49 is drawn twice a week vs. once weekly for Lotto Max. And even though Lotto 6/49 can reach large jackpots – like the record $64 million last fall – it takes a long time to do so. Lotto Max is still the king of the jackpots – “The consumer here gets it,” said Pagnotta. “They get the fact that the games are different based on jackpots.”

There are also conscientious efforts to market the two games differently. Lotto 6/49 is typically marketed to older consumers, whereas Lotto Max tends to attract younger players, with campaigns planned accordingly. As the brand that has been around the longest, Lotto 6/49 also has a broader appeal than Lotto Max, reaching a higher percentage of adult consumers.

While Lotto 6/49 has some common creative used in advertising across most jurisdictions, the lotteries have recently been ramping up individual creative on Lotto Max, testing new concepts and advertising themes. The unusual campaigns are bearing fruit, according to Schulzke, further helping the brand.

With its population base much different than the rest of Canada, Loto-Quebec often has its own campaigns for the national games, and last year launched new creative for both. The traditional “Live your dreams to the Max” campaign for Lotto Max has shifted to a focus on how becoming a multi-millionaire changes your life – “Welcome to your new life.” And once players understood and accepted the new Lotto 6/49 – a game which has always done much better in Quebec relative to Lotto Max compared to other provinces – it was time for new creative on that game as well.


Lottery games that come from the gaming system terminals have historically been “buy now and wait for

the draw” affairs. But with the tremendous popularity of instant tickets, lotteries have looked for ways to adapt the best features of instant games to terminal-printed tickets.

One option is the Fast Play style of games, sold under varying names by several North American lotteries. Another

takes it a step further – offering that instant win component combined with an opportunity to win a second time in a drawing, usually later that day. Potentially even more compelling to the consumer, the instant-win component often plays out with entertaining animation on an in-store monitor.

In fact, Canada’s lotteries call them “Watch ‘n Win” games – you watch the animation in the instant portion to see

your results. However, not all of the American lotteries that have adopted this game format use the animated portion of play in stores, so the “watch” part doesn’t apply. For the sake of simplicity, let’s call them “hybrid” games, as they represent a hybrid of both instant and draw games.

Almost 20 years ago, in October 1996, the Delaware Lottery actually introduced the first such hybrid game – a ticket printed through the gaming system that included

Watching While You Win

Games offering both an instant win and nightly draw feature are popular in some jurisdictions, particularly in Canada.

By Patricia McQueen

New

MINIMUM OR OTHER PRIZES AVAILABLE TO BE WON

Backlit


an instant-win component combined with a later draw for a jackpot. Developed by AWI, a legacy Scientific Games company acquired in 2003, Winning Hand was card-based, much like Poker Lotto many years later. As we sometimes see in the lottery industry, that game was ahead of its time.

A selling point of Watch ‘n Win is the animated video – it is what makes these games unique and potentially attractive to a younger customer base. “Even though ‘two games in one’ is the most appealing and most motivational positioning for the category, the instant win carries more of a weight,” noted Dante Anderson, Acting Director, Regional Lotto, for the Ontario Lottery and Gaming Corp. (OLG) “We want to tell people there are two games to play, but we want to play up the instant win a little more so than the nightly draw. It’s all about instant gratification with our players, and for the general population.”

In FY15, the category brought in $90.6 million in sales across seven American lotteries, an 11.5 percent increase over the previous year, when six lotteries generated $81.2 million in sales. With one game each,

these sales paled compared to Ontario, where the recently-concluded FY16 saw C$148 million in sales across four games. Still, that represented a decline from C$176 million in FY15, because nothing new was added to the category during the most recent year. This is a category – much like instant games – that thrives on “new.”

Ontario Insights

It was all new in 2010, when Poker Lotto debuted in Ontario – the game was ultimately honored as a Best New Draw Game in NASPL’s annual awards competition. Almost six years later, it is still the champ of the Watch ‘n Win category for OLG with a small loyal player base that thrives on the popular poker theme. But that same theme is also a limiting factor to its growth, noted Anderson, because “poker is a game that you either love or hate, and is viewed as intimidating by the general population.” About three to four percent of Ontario’s adult population play the game, and it has been hard to move that up.

Mega Dice Lotto was the second game in the series, launched in October 2012 and designed to keep the appealing elements of a casino theme that worked with poker. The next game, introduced in November 2013, was Wheel of Fortune Lotto, a conscientious attempt to really broaden the player base with a known brand. That brand recognition, plus the ease of understanding a spinning prize wheel, made it accessible to more of the public. The fourth game introduced was NHL Lotto, admittedly a game with much more limited appeal, even with hockey’s popularity in Canada, which debuted in October 2014.

As each new game came to market, there was some cannibalization of the existing games in the category, but overall there were always incremental sales. Anderson thinks four is the magic number, as incremental sales from each new game have lessened. The effort now is focused on building awareness of the existing games. “There’s such an opportunity out there for making the general population aware of these games because of their


newness. When people think of lottery and new lottery products, I don’t think they necessarily think ‘unique.’ This category, with the instant win and video component plus a nightly draw, is definitely non-traditional. It isn’t your ‘mom and pop’ lottery.”

Much like instant tickets, Watch ‘n Win games are considered to be impulse purchases – people don’t go into a store expressly to play them. And because they are terminal generated, they don’t have the visual presence a bank of instant tickets does. But they do act much like instant games in their sales pattern – strong sales initially which then decline as the “newness” fades. “In an ideal world, we could launch one of these games every six months or so to keep things fresh because we know that what’s keeps players engaged and attracts new players, but because we build all of these games internally, there just isn’t enough manpower to do that.”

One thing that really surprises Anderson is that the games are attracting people from all walks of life. Even the two casino-themed games aren’t played by predominantly casino-oriented players. Playership is well distributed across the population, although there is a slight tendency towards younger players.

Earlier this year, OLG launched its first fully-integrated advertising campaign for the Watch ‘n Win category, designed to build awareness. Wheel of Fortune was designated the hero of the campaign because it’s an easy point of entry with a brand people are familiar with. And although all the games saw sales rise, indicating a successful effort to encourage cross-sell across all four, not surprisingly Wheel of Fortune had the strongest growth, doubling its sales in FY16 to become second only to Poker Lotto. Officials learned a lot from the campaign. “There’s an opportunity to optimize that advertising, so we are going to continue to look at category advertising as a means of maintaining and growing our sales,” said Anderson.

OLG also uses occasional promotional prizes to boost interest. For example, Wheel of Fortune has two built-in promotional prize wheels, so instead of a

$10,000 top prize, there can be a $20,000 trip or a car. A short promotion with a trip, six months after launch, doubled sales during that promotion. “When we design Watch ‘n Win games we are always thinking about the long term, building in features that will give it some longevity and ways of bringing something new to players.”

Another example of that is the addition of an optional progressive jackpot for Poker Lotto. Called All In, for an extra $1 players have a chance to instantly win a growing jackpot, plus increase their base instant-win prizes. “It gave us something new to advertise to players, and it was also a new feature that wasn’t available on any other OLG product,” said Anderson. Since its launch in March 2014, All In “really breathed new life into that aging brand.”

One of the things OLG is looking at for the future is building a game that can be re-skinned. That solves the problem of not enough resources to design completely new games. “It would allow us to change the theme multiple times a year without having to build an entirely new game, because that’s what brings freshness to the table.”

Another possibility is moving that instant-win experience outside the store – a player could buy the ticket at retail but then watch the instant game animation on a mobile device. While some players like the in-store experience, it can be a major barrier to expanded participation. It’s like a double-edged sword – some players don’t like it, but it remains the best way to give players that experience they are looking for, that unique offer that makes it so different from other games.

Entertaining in Quebec

Loto-Quebec, which has always been a leader when it comes to interactive and entertaining game concepts, doesn’t see the in-store win as a barrier for most of its players, although some will always reject the idea. “Since Loto-Quebec has three TV lotteries, we know that our players want to be in the spotlight sometimes,” said Rosalie Brault, Team Manager, Products and Development, for Loto-Quebec’s lottery division.

Like Ontario, Quebec currently has four Watch ‘n Win games, although it also has additional games that only include the animated instant draws without the second evening drawing, sort of a Fast Play on steroids. For Quebec, it’s all about adding entertainment to a basic draw-type lottery, and they look for any opportunities they can find.

Its games include Lotto Poker, the first to launch in 2011; Lotto :D, a dice game; Sprinto, a race car themed game; and Lotto Hockey, a seasonal product. The category reaches the 18-34 age segment much more so than more traditional lottery products, and games are displayed on the 19-inch screens in the lottery’s province-wide retail network. “Although the size of the screen is the primary element of entertainment for these games, creating an attraction around the display, it is their graphic and sound capabilities that bring the animations to a new level,” explained Brault.

Also like OLG, Loto-Quebec launched each game with advertising, but provided little post-launch support. And as OLG discovered, there is an ongoing awareness challenge, which presents an opportunity. For example, Loto-Quebec set up a booth during the Montréal Auto Show last year, giving consumers a free chance to try Sprinto. And at this writing, it was expected that the late May launch of a new progressive jackpot addition to Lotto Poker will be promoted with a booth at Casino de Montréal following the World Series of Poker circuit event there.

Loto-Quebec’s overall experience has been quite similar to Ontario – strong sales at introduction, followed by a predictable decline, much like instant games. “It seems that they reach a stability zone in a shorter period of time than instant games,” said Brault. She agreed that at some point, there will be enough games on the market and only the most popular games should remain.

American Experiences

Other lotteries offering hybrid games have just one product, and in many cases, particularly in the U.S., the instant-win component is simply a terminal-printed ticket without the animation


that characterizes the true Watch ‘n Win category. That is often due to a system or equipment limitation.

One of those was the Wisconsin Lottery, which launched the game in April 2014 as 5 Card Cash without the animation portion since retailers there don’t have video monitors. For Wisconsin, the game’s advantage was the two-part play – the instant-win portion and the evening draw portion. It was chosen as the most appealing product from a group of games being tested with consumers, as players liked the ability to win twice, the good overall odds and just the fact that it was something new and different based on a card game. “This was a way to give them something very different from what they had seen before,” said Product Development Director Saverio Maglio.

After talking with other lotteries, Wisconsin knew that a lot of POS material would be needed – to help consumers learn about the game and to help retail clerks learn enough to answer consumer questions. So the Lottery created two-sided tear sheets that really helped explain the game and how it works.

5 Card Cash was launched with a typical television campaign, but what wasn’t typical was a follow-up two months after launch with a limited time offer. “That really helped stabilize the game

early in its life,” said Maglio, who noted that sales were strong out of the gate, but as expected dropped off shortly thereafter. The limited time offer brought them back up to a reasonable level.

“We knew prior to launch that this was going to be a niche game – not with significant annual sales, but a good game that can fill a niche” in the portfolio. Wisconsin’s strategy is to have a spot in its draw game portfolio where games like this could rotate in and out every two years or so, providing incremental sales and variety for the players.

For now, 5 Card Cash is providing a small but now steady sales volume, much lower than its sales at launch, of course, but enough to keep officials happy – about $123,000 a week at this writing. “The big thing was to be realistic about our

expectations with this game,” said Maglio, adding that it hasn’t cannibalized other products.

The Michigan Lottery is another that is satisfied with the game, although officials marvel at how successful it has been in Ontario – something that they haven’t been able to duplicate. It’s not for lack of trying, as Michigan copied as much as possible from Ontario’s game, down to the name Poker Lotto. One key difference is that Michigan also has Club Keno, and Poker Lotto isn’t sold at those locations (bars and restaurants). Club Keno sites use a different network of displays than the traditional retail network, and the Lottery can’t run the Poker Lotto animation on the keno monitors. Therefore, Poker Lotto is only sold at traditional lottery retailers where the animation can be displayed.

“We have compared Poker Lotto sales to Ontario since launch, and their high per capitas are sort of confounding to us,” said Draw Games Manager and Director of Advertising and Promotions Tim Shafer, adding that Michigan’s results are more in line with other American lotteries. He theorized that perhaps Watch ‘n Win games do better in a lottery without Club Keno, as they might fulfill the consumer desire for a visual and entertaining game not otherwise available.

Like Wisconsin, Michigan saw great success at launch, and then the typical decline in sales after the newness wore off and marketing support ran out. The game has stabilized, and Shafer thinks it has found its level and it does generate incremental profits. “We’ll be keeping it in the lineup, because there are fewer and fewer magic bullets in the draw game world.” He indicated that Michigan may try game enhancements in the future, perhaps the progressive add-on that is successful in Ontario.

A few other lotteries in Canada and the United States run hybrid games with varying degrees of success. They do so because the games offer something different for consumers. And while Ontario was the modern pioneer in the category with the video component that makes the product so unique, others have proven that it is not an absolute requirement to provide incremental revenue.


Despite this incredible Powerball event, the draw product category has experienced lower sales performance over the last few years. In contrast,

instant products – often supported by promotions, innovations and interactive engagement – continue to produce the largest year-over-year revenue growth for U.S. lotteries and in many jurisdictions around the world. In the U.S. alone, the instant product market grew by more than $3.2 billion in 2015 (La Fleur’s Almanac).

“Our focus is on total revenue growth of the game portfolio, and we are applying our learnings and best practices from instants to the draw game category for our systems customers,” said Leslie Badger, Vice President, Lottery Marketing Strategy for Scientific Games. “Licensed brands, loyalty, mobile apps, social and digital promotions add a ton of excitement to instants, and they can do the same for draw games. As a full-line provider, we understand the benefits to the lottery when all of these components integrate to enhance the overall player experience and drive growth.”

Insights into Player Motivation

It’s important to follow the consumer through the entire lottery eco-system at all touch points, connecting them with a deeper experience and technology that offers seamless movement across game entertainment verticals. Why? For many years, the lottery industry believed that players were different across the gaming verticals. New research from Scientific Games, a player segmentation study called One™ – one consumer, one wallet, endless opportunities – found a surprisingly large crossover between lottery and gaming consumers:

• 75 percent of casino slots machine players also play lottery draw games

• 50 percent of lottery instant game players also play casino slots machines

• 74 percent of casino slot machine players also play lottery instant games

What a new era we’ve entered. Hot off an historic Powerball run with a record-breaking jackpot that soared to $1.586 billion in January, many lotteries are taking a different look at draw products and how they can perform better in the overall product mix. There was possibly no other event in modern lottery history more talked about, and shared socially more often, than the recent Powerball jackpot, proving that draw games have the potential to drive significant player engagement and sales performance.

Beyond the Draw


The One study, which included more than 10,000 respondents in the U.S. and Europe, identified six different gaming segments based on motivations for playing: Ultimate Gamers, Dabbling Gamer, Pre-Ultimate Gamer, Reserved Gamer, Dedicated Gamer, and Outgoing Gamer.

“Our findings can help lotteries design strategic game portfolios for different player segments – not simply games that appeal to Millennials, women or other demographic characteristics,” says Badger. “We design games to appeal to player motivations, rather than simply to demographics like age, gender or income. This allows our customers to deliver games in a variety of ways that appeal to players’ likes and motivations.”

The One study found that approximately 35 percent of the “Dedicated Gamers” segment play draw games on a weekly basis, and 76 percent show heavy engagement in online social games like Candy Crush or JACKPOT PARTY® Casino Slots, and they like to play puzzle and trivia games for fun. Dedicated Gamers play many different types of games for fun. They are motivated by the excitement and adrenaline rush that comes with gaming. Scientific Games leverages insights like these with fully integrated programs that include instant, fast-play draw games and digital components, innovating with successful brands and play styles from instant games. Draw Games Offer More than Meets the Eye

Another longtime belief is that draw games are passive – that the player’s engagement ends after they pick their numbers. And while draw games have always had the attraction of big prize monies and mega-jackpots,

players really didn’t engage in the game until the few seconds before the excitement of the actual drawing when winning numbers were revealed. Over the years, more and more players began using Quick Pick for non-daily numbers games and the experience became more passive. By comparison, both casino games and lottery instant games provide players with more engagement and anticipation of winning. Unlike most draw games, they offer more of a “game” to play.

“In the last decade or so, the draw game experience began to change. Working with our customers, we launched InstaWin™ or fast play games that gave players the chance to ‘play’ a game that was coming from a lottery machine at retail,” says Badger. “Next hybrid games arrived, offering the opportunity to play now for an instant win, and then extend play with the possibility of a win a few hours or days later when the drawing took place.”

Today, player engagement at retail has advanced. Lotteries can integrate both in-store digital communication systems like Lottery InMotion™ and mobile into the player experience. Lottery InMotion brings the draw game to life at checkout by displaying an animated instant win reveal on the digital screen for five to seven seconds. Lotteries also communicate directly with players via mobile through proximity marketing like the industry-first beacon technology that Scientific Games implemented for the Pennsylvania Lottery. Instant win prize structures put cash in the customer’s hand at retail and the technology reminds players about a growing jackpot and promotions such as “buy $10 in Powerball tickets, get a free instant game.” There’s also a lot of room for creativity with retailer co-promotions offering free coffee or other items with the purchase of lottery games.

And as consumer self-service has touched many other aspects of our lives, lottery is now no different. Whether in a convenience store, restaurant or bar,

Top: Hybrid games like this one with a World Poker Tour® theme offer the opportunity to play now for an instant win, before a drawing takes place.

Bottom: Short, fun YouPlay™ games offer players deeper interaction with lottery at a self-service kiosk. Shown here, Call of the Moon™.


you can purchase lottery games from self-service technology like PlayCentral® HD using credit, debit and mobile payment (as allowed by law). Players can buy a draw game ticket at the self-service kiosk and – more than just put it in their pocket and wait for the drawing two days later – actually interact with lottery right away through YouPlay™ games. Players select a theme – in many cases themes popular in casino or lottery instant games – and can play short, fun games at the kiosk. Win or lose, they receive a game experience voucher.

“As a full-line provider, there’s a certain fluidity in what we can offer the consumer,” says Badger. “Players can engage with a game at a retail terminal, at a self-service kiosk or on their mobile phone. They may even see a different variation of their favorite game on a video lottery terminal or slot machine at a racino or casino.”

Badger said players in some jurisdictions (depending on applicable

laws) would soon have the option to play a game, such as Keno, through a mobile app while in a busy store or crowded restaurant. This frees up staff during busy periods, enabling businesses to maintain customer satisfaction and commission- generating sales. Players can view drawings on their mobile where it may be easier to see. A new twist in on-premise engagement brings the draw game to life, in app form, right in the hands of the player. This can perhaps segue into being able to play game themes in an on-demand experience not linked to the timeframe of the three-to-four-minute draw cycle.

Adding Big Brand Excitement

“Who says draw games aren’t exciting? Licensed brands from casino games and lottery instant games brands are crossing over to draw games, and there’s no better example than World Poker Tour® – a popular brand that has the potential to

generate interest for similarly themed draw products among a large group of gaming consumers when it launches as a hybrid game this summer,” says Badger. “We have over 100 licensed properties, so there’s incredible innovation taking place with cross-over brands.”

Licensed properties that have already proven omni-channel appeal include the television game show brand The Price Is Right®, which can be integrated into a Keno promotion with the opportunity to win experiential prizes, and the queen of cartoons, Betty Boop™, which has been applied to an InstaWin terminal-generated game.

There’s unlimited potential for Hasbro brands like SCRABBLE™, YAHTZEE™ and CONNECT 4™ in the draw product category. Two Scientific Games casino brands, Life of Luxury™ and Call of the Moon™ have strong potential for crossover success. The company’s wildly popular Gold Fish™ casino game recently debuted in lottery instant

Popular cross-over brands like Gold Fish™ can add excitement to traditional lottery games.


and interactive games in one U.S. jurisdiction, with more lotteries to follow. The $2 instant game indexed at 141 after just four weeks in the market.

Engaging Players on Their Terms: The Digital Movement

“No one has innovated more in the digital space for lotteries over the last 15 years than Scientific Games,” says Badger. “Our technology has enabled internet sales in three U.S. jurisdictions (Minnesota, North Carolina and North Dakota), 13 lotteries have deployed our mobile apps, we’ve created more than 600 websites for lotteries, we’re leading innovation in second-chance games and promotions, and we offer the only comprehensive loyalty rewards program with an online store where players can redeem points for merchandise and experiential prizes.”

Initially, many lotteries offered web-based player loyalty and rewards clubs designed for instant games. In recent years, full product lines including draw games have been incorporated into loyalty programs. Targeted loyalty promotions that drive sales for a particular product category or price point during a promotional period can also be broadened to drive draw game sales. In fact, draw games can offer just as much player engagement in loyalty and promotions as an instant game.

Interactive second-chance promotional games, which have been a successful addition to the instant game category, now extend to the draw game experience. For example, players can buy a World Poker Tour branded hybrid game, and then scan a bar code on the ticket with their mobile phone to play through a World Poker Tour branded mini game, with the opportunity to win cash or merchandise prizes, or generate and collect points for a bigger prize or more drawing entries.

Mobile apps make it more convenient for players to engage in loyalty rewards and interactive promotions, as well as stay current on jackpots, winning numbers and lottery retail locations. Digital and mobile games with themed extension or “mini” games engage players with lottery products and drive the player back into the store.

“Players today expect a customized experience. We can make their experience so much richer by applying their preferences to interactive play. The knowledge gathered from analyzing digital experiences – as we’ve enabled the Pennsylvania Lottery to do from millions of player sessions – can be used to refine any product in any market. We use our business intelligence to improve technology, messaging and the games offered via that technology, and follow consumer behaviors in price point, product and prize preferences,” says Badger.

The concept of consumers sharing lottery experiences on social media, even lottery draw games, is still relatively novel. January’s Powerball run was one of social media’s biggest trending topics in recent years, with photos of the rising jackpot, stories about how players would spend the money, to crowd-sourced videos of excited consumers. The possibilities and potential are seemingly endless when lotteries encourage more social sharing with interactive promotions tied to draw games.

More Than a Paper Ticket

It’s time for lotteries to look beyond the draw. Research confirms that the majority of consumers who play lottery draw and instant games, also visit land-based or interactive casinos. There are lessons to be learned from instant and casino games. Player experience, marketing, mobile, promotional, social media and retail technology can power innovation in the draw game category for the global lottery industry. How can your draw games more optimally perform in your product portfolio? Better yet, how do they fit into an increasingly omni-channel, consumer-driven world?

All ® notices signify marks registered in the United States. © 2016 Scientific Games Corporation. All Rights Reserved.

Mobile apps make it more convenient for lottery players to engage in interactive games and promotions, as well as loyalty rewards programs.


Lotto games suffer from their own success – as the industry designs games to create bigger and bigger jackpots, those same jackpots make anything less seem “ho, hum” to the average consumer. This was taken to a new level in January after a $1.58 billion jackpot obliterated the previous record. Guess what, the game’s redesign last fall worked as intended. But what now to do with the monster?

Lotteries around the United States are working hard to capitalize on that Powerball run and the increased awareness of the game that it created. In the final two drawings alone,

there were 98 $1 million winners and 11 $2 million Power Play winners, plus millions of lower-tier prize winners. That’s a lot of winning experiences in just two drawings of a single game. And as the Ipsos Reid research shows (see article beginning on page 44), that presents lotteries with a great opportunity.

To help counteract the feeling that $15 million, or $40 million, is not worth a second thought, or a buck or two, the Powerball group created a campaign for that game’s $40 million base jackpot, which many lotteries have taken to heart along with a renewed focus on winner awareness.

For example, the Tennessee Lottery is working hard to demonstrate why players should continue to enjoy playing Powerball even when the jackpot is not at record highs. The Lottery’s strategies include:

• Increased winner awareness at the $50,000 prize level: working hard to get winner photos, issuing press releases to hometown media, showcasing winners on in-store digital monitors and in retailer newsletters and increased website and social media exposure.

• Promote starting and lower level jackpots, using the “Wouldn’t at Least $40 Million Change Your Life?” campaign, with radio spots, increased in-store presence, web banners with media partners and community events throughout the state.

• Promote Powerball features other than the very large jackpots, such as nine ways to win and the total number of Tennessee Powerball winners from previous night’s drawing, using social media, press releases and community events.

Advertising Jackpot Games – Strategies that Sell


Even as these strategies bear fruit, there’s nothing like advertising, as any consumer brand will tell you. The format/media may have changed over the years – it’s no longer just television and radio – but lotteries need the awareness generated from advertising campaigns. For jackpot games, there are typically tiered programs in place, with paid media starting small and ramping up until, in many cases, it is pulled when a media frenzy develops at high jackpot levels. But just like no two lotteries are exactly alike, neither are jackpot advertising strategies.

We asked lotteries to summarize their strategies for advertising lotto games, and their edited responses follow.

Atlantic LotterySupport of lotto games is focused on the two big national brands – 6/49 and Lotto

Max. Currently Atlantic Lottery only supports regional lotto games through owned media and winners support if we have major winners. We maximize winners’ stories through paid and earned media that includes a winners’ celebration and a news release that capitalizes on the winners’ personal experience and promoting their particular story. Media coverage of winners is very consistent and positive. In fiscal 2017 we will be expanding our regional game category and these new games will receive full launch support.

Our strategy to support the two national brands focuses on three areas:Core players – the objective is to maintain regular play with consistent jackpot

reminders at all levels that align with their behavior. Key areas of support include out of home, television, radio and online (display and video).

Jackpot chasers – the objective is to increase casual play at high jackpots by reaching them where they are, to surprise and delight them through a unique plan when Lotto Max is $50 million or Lotto 6/49 is $30 million. Key areas of support include – television snipes and bugs, radio with new station mix, cinema (digital lobby network), online (high impact custom roadblocks, niche content), mobile overlays and social media.

New players – the objective is to shift non-players to casual players at all jackpot levels by following their unique media consumption behavior (the “not my father’s jackpot” plan). Key areas of support include online including social, Vice and Spotify.

We support all jackpot levels, but the type and degree of support does increase/change as the jackpot increases. For example, when we hit $50 million on Lotto Max, our Jackpot Chaser plan kicks in but the types of media we are using is not the same as our base plan. We have learned from past experience that more jackpot alert in the same channels will not influence Chasers.

British Columbia Lottery Corp.Nationally, BCLC collaborates on creative assets and purchases a base TV

and digital buy together with our partners to support Lotto Max and Lotto 6/49. Regionally, BCLC has regional base TV, radio tag and out-of-home transit platform buys to layer on top of that and there will also be a persistent digital buy.

During high jackpots and key promotional periods, BCLC will also supplement with additional media such as print, OOH and radio to ensure rapid mass reach. Regional games are promoted primarily through in-store, web and BCLC’s owned assets, with the exception of Keno (Quick Draw) which has a winners campaign supported by media.

As a baseline, Lotto Max and Lotto 6/49 are supported by the national and regional TV base media buys regardless of jackpot levels. However, as jackpots grow to a certain level ($40 million for Lotto Max, $20 million for Lotto 6/49), BCLC purchases additional media (print, online, OOH, radio) before the draw to drive quick awareness to those jackpots. A tiered approach is used – as the jackpots get larger

During high jackpots and

key promotional periods, BCLC will also supplement with additional media such as print, OOH and radio to ensure

rapid mass reach.

- British Columbia Lottery Corporation


beyond those levels, the additional media spend increases.

All of our ads include a call-out to jackpots, as that’s a main point of interest for our consumer. For Lotto Max, there is a specific TV spot that is aired starting at $50 million (when MAXMILLIONS start) to build excitement and drive home the jackpot message.

Colorado LotteryWith jackpot games, we really focus

on jackpot level awareness. Powerball and Mega Millions jackpots are continuously featured on outdoor billboards and point-of-sale signage in retail stores. If there is a specific change, such as last year’s Powerball 10x Power Play multiplier, we will create a media campaign to generate awareness.

We do not currently have a program in place to support different jackpot levels. We have utilized a “trigger campaign” approach in the past. This campaign was focused on jackpot-triggered digital and radio campaigns for Powerball and Mega Millions. We ran the trigger campaign for three days at a time for each game once the trigger amount was met. On draw days for both games, all advertising was turned off after 7pm.

Historically, we turned the campaigns on when the jackpot reached $200 million and ended them when they hit $300 million. We would occasionally make game time decisions when to pull the advertising based on our instincts of when news media would start talking about the jackpot.

Delaware LotteryCurrently, we do jackpot advertising.

We advertise on transit for Mega Millions, Hot Lotto and Powerball for all jackpot levels. We also have digital billboards for Mega Millions and Powerball. We use social media daily for jackpot advertising and have special graphics for the larger jackpots. Radio jackpot advertising begins at $275 million for Powerball and $225 million for Mega Millions.

DC LotteryFor the multistate games, we have the

basic banner ads on our website and LED jackpot signs in all of our agent locations. We do have a program where incremental

advertising kicks in. For Powerball and Mega Millions, $100 million is still the starting point for these additional efforts, such as players’ club e-blasts and increased social media activity. Even though $100 million doesn’t really move the dial anymore, we still use that mark to start talking about it. We also have an inventory of thousands of 10-second tags for radio, which we call our total traffic inventory, as they play when local stations do their traffic reports. It gives us a chance to talk about something on the radio, such as when the jackpots roll. We also advertise the jackpots on our “Lott Line,” our winning numbers telephone hotline.

Florida LotteryWe advertise on digital boards and

are testing in-store LED signage (around 2,000 in select stores showing Powerball, Mega Millions and Florida Lotto current jackpot totals). We’ve noticed a 25 percent sales increase (total jackpot games) in

stores with the in-store jackpot signage vs. stores without and have plans to install more going forward. We only advertise Florida Lotto when the jackpot reaches $15 million and continue until someone wins. We have static boards for Powerball and dual static boards for Powerball/Mega Millions. We also advertise the jackpots on digital boards. We don’t go beyond these boards in our advertising, except the time when there were changes to the Powerball matrix.

Georgia LotteryIf the game(s) are in-state, we stress

the Georgia-only message. We have done this successfully for our Jumbo Bucks Lotto game, where we highlight that it’s a Georgia-only game. We have found this is preferred by some players who like the idea of a game exclusive to their

state. It creates this sense of optimism and winability since it’s only available for purchase in the home state versus the whole country. Additionally, we find great value in winner awareness by broadcasting winning prizes and locations via our Lotto Vision. This creates a great buzz when players see that people are winning in their area and enforces the winability of other prizes besides the top prize/jackpot prize.

We have been communicating the message “Any Jackpot is a Good Jackpot.” This is a message that we predominantly communicate during low jackpot levels. We also have efforts including radio reads that announce the evening’s jackpot drawing. Referencing the starting jackpots of $15 million or $40 million, the read will say, “The Georgia Lottery believes you’ll be able to make it on just that.” Typically, during high jackpot periods, we focus on communicating the larger jackpots on our website. Our sales staff also executes all of the classic in-store tactics to remind customers to play. We also reach out to players heavily via social media and our Players Club database to thoroughly communicate high jackpot levels; this usually occurs above the $200 million range.

Idaho LotteryJackpot alert! The Idaho Lottery has

outdoor billboards plus in-store electronic jackpot display boards which show the current Powerball and Mega Millions jackpot amounts all year round. They all feature both games’ jackpots together. We will also utilize live radio liners, jackpot alert television spots and the Lottery’s owned media channels – in-store video displays, e-mail blasts to VIP Club members, web banners, digital media, five-second billboards on our draw stations and heavy messaging on our social media channels.

Typically, mass media is only used to support Powerball and Mega Millions. However, if we are running a special promotion, like our recent Lucky for Life promo, or we are introducing a new draw game, we will support those games with mass media to create interest and awareness. For our other draw games, including lower-jackpot, multi-state games and our daily and twice-weekly

Even though $100 million doesn’t really move the dial anymore, we still use that

mark to start talking about it.

- DC Lottery


in-state games, we will use our owned media channels to support awareness.

Jackpot alert messaging for us begins when jackpots reach $100 million with e-mail blasts to our VIP Club members on draw days. When the jackpots surpass $150 million we introduce live read radio liners and jackpot alert television spots on draw days. These will typically run until earned media kicks in, which is usually around the $400 to $500 million mark.

Iowa LotteryThe Iowa Lottery rolls out an integrated marketing campaign

as new lotto games are introduced. This includes TV/cable and radio commercials, online ads and outdoor along with social media outreach and website features. We produce a ‘How To Play’ video that’s delivered in e-mail communication to the VIP Club, and it’s posted to our website and YouTube Channel. Iowa utilizes Lottery InMotion screens, retailer info cards, player brochures plus an additional piece of point-of-sale material at each retailer.

When the estimated Powerball or Mega Millions jackpot reaches the $250 to $300 million range, we deliver awareness messages with the Lottery InMotion screens, a heightened presence on www.ialottery.com, and through our five social media platforms. We also insert jackpot awareness into our 52-week buys including radio adlets and sponsorship IDs.

At $300 million TV and radio commercials will begin to air along with either newspaper ads or online ads, with placement on the day prior to and the day of the draw. We switch our digital outdoor messages from the side-by-side Powerball and Mega Millions jackpot estimates to messages that feature the single game with the highest jackpot. We distribute coupons through media promotions and the ‘top of the ticket’ messages printed on lotto tickets will showcase the jackpot estimate.

Once the jackpot estimate reaches a level where the national media starts chattering about it, Iowa pulls back on its paid messages. At that point it’s time to introduce ‘Play Responsibly’ messages through the website, blog and social platforms.

Kansas LotteryThe Kansas Lottery’s strategy for advertising draw games

starts in the store. In the past couple of years, we made a major investment to place electronic jackpot signs in our top retail locations. So far, we have installed 250 electronic signs and are set to install 250 more in the coming months. Jackpots are also advertised on our in-store ad shows, with “jackpot alerts” initiated each time jackpots reach certain levels. Outdoor advertising continues to be an essential element in our strategy. We recently added nine new billboards with dual jackpot displays and the ability to advertise jackpots of a billion dollars or more. We currently have a yearly sustaining TV advertising campaign underway strictly for Powerball jackpot awareness using the national Powerball spots. For our radio advertising we have


started producing :60 spots that are actually two :30s, the first :30 to promote a specific game and the second to promote Powerball jackpots.

We start promoting jackpots at $100 million and continue until around $400 million or when the news media takes over.

Kentucky LotteryWe advertise the Powerball and/or

Mega Millions jackpot amounts when one or both amounts are over $150 million. We do jackpot advisories on radio as well. We advertise the jackpot amount year-round on buses and billboards.

Louisiana LotteryOur overarching marketing strategies

for all of our lotto-style games primarily include jackpot alerts, game education and winner awareness, playing to the unique features and benefits of each game. As with all lotto-style games, jackpots drive sales. We do not have a systematic advertising program for advertising at certain jackpot levels, as there are multiple factors at work that can affect play decisions even during high jackpots. It truly is based on what we’re experiencing from a sales and PR standpoint during any given jackpot run, budgets, and what’s happening with other products in our portfolio. However, in general we find jackpot awareness strategies work well for jackpots between $200-$300 million for Powerball, over $100 million for Mega Millions and over $1 million for our instate Lotto game.

We also employ player advertising displays (PADs) at the point-of-sale at each retailer to advertise games, winners, promotions and other core messages. When the jackpots reach certain levels, we insert a jackpot awareness spot in the digital ad rotation, in addition to a standing spot that includes all games/jackpots. Those jackpots thresholds are $1 million for Lotto and $250 million for Powerball and Mega Millions. We also have a spot that advertises the 10x multiplier available on Power Play anytime the Powerball jackpot is between $40 million and $150 million.

Maryland LotteryOur advertising for jackpot games

focuses on the jackpot amount, as we’ve found that to be the primary reason consumers play these games. Like most lotteries, Maryland begins jackpot advertising at about the $200 million level. We utilize a network of digital billboards and short-format radio (10 and 15 seconds) to communicate the key selling points, including the jackpot amount and the dates of drawings. Fifteen-second television commercials prominently featuring the upcoming jackpot amount

begin airing at the $300 million jackpot level. Typically, we stop advertising when the jackpot becomes large enough to attract significant media coverage. But after the recent $1.58 billion world-record Powerball jackpot, we decided that a more effective approach would be to monitor earned media, watch sales and be flexible.

Massachusetts LotteryOur jackpot advertising consists of

multiple digital platforms, radio and social media. Within the last year, we’ve implemented an “always on” strategy to promote Mega Millions and Powerball jackpots on mobile devices and tablets for every drawing. When the jackpots are less than $50 million, the scrolling message asks users to tap on the message to find out what the current jackpot is. Once a jackpot is $50 million or more, the actual amount appears on the scroll. Once either the Mega Millions or Powerball jackpot hits $100 million, we run paid posts on Facebook that promote both jackpots, regardless of where the other jackpot may be.

The $140 million mark has been the trigger for radio advertising, while $300

million has been the mark where we end it and let traditional and social media carry the message. Similar to our Facebook strategy, we use this advertising as an opportunity to promote both jackpots, regardless of where the other jackpot may be.

Michigan LotteryFor the multi-state games, we start

advertising them on a small scale basis at $100 million. Those are typically digital ads, newspaper ads and some of our in-house assets, all of which we have commitments to 52 weeks a year and we can frequently change copy in and out. Broadcast media (TV and radio across the state) kicks in a little later – at $125 million for Mega Millions and $175 million for Powerball (because of the matrix change last fall). Once those games get to $300 million, we turn off paid advertising and let the public relations people run with it.

We don’t support our in-state games with broadcast media, but at certain thresholds we use the same group of smaller outlets where we have 52-week commitments – $3 million for Lotto 47 and $300,000 for Fantasy 5.

Missouri LotteryMissouri’s strategy for advertising our

draw games is multi-level. Our retailers have electronic signs displaying the Powerball and Mega Millions jackpots at the point of purchase. Most retailers also have an electronic window sign that displays jackpot amounts for Powerball, Mega Millions and Show Me Cash. When the jackpots reach certain levels – $100 million for Powerball/Mega Millions, $4 million for our in-state Lotto game, and $100,000 for the Show Me Cash in-state daily game – signage is auto-generated on our retailer portal. Our lottery sales representatives also begin their jackpot alert strategy by placing the preprinted paper signage at point-of-purchase, on doors, on windows and other places in the store. Corporate sales managers email signage to corporate retailers as well.

We have outdoor billboards throughout the state that display the multi-state jackpot amounts all day, every day. When one of the multi-state games reaches $175 million, we begin paid

Our jackpot advertising consists of multiple

digital platforms, radio and social media.

- Massachusetts Lottery

.


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advertising through radio DJ reads, digital billboards, web banners and Facebook posts. This paid media support continues until the jackpot is won or until the jackpot reaches $500 million. This is the only time we advertise our jackpot games.

Though we encourage responsible play at all jackpot levels, we make sure to include these messages once a jackpot exceeds $300 million. We remind players to play within their means in news releases, sound bites and social media.

Nebraska LotteryFor Powerball, we have a dual strategy. When the jackpot is

between $40-$99 million, we focus on an ongoing positioning statement, “Why Wait to Win?” These messages highlight the fact that the starting jackpot of $40 million is a lot of money – enough to make all of your dreams come true, so why wait to win? This message is seen across all platforms from traditional to digital to POS. The second strategy is simply focused on jackpot awareness. Once the jackpot hits $100 million, we focus solely on the jackpot amount in a multimedia blast that includes radio, outdoor, dynamic web/mobile and social.

With Mega Millions, we have a more recent branding campaign that focuses on its key main benefit and differentiator from Powerball: it’s only one dollar. We use the positioning statement, “It All Starts with a Buck,” in our messaging for Mega Millions regardless of the jackpot level. This message is seen across all platforms from traditional to digital to POS. With that said, we trigger the multimedia jackpot amount awareness blast as we do with Powerball at the $100 million level.

For our sole in-state jackpot game, Nebraska Pick 5, we focus on a couple key points outside of the jackpot, with the biggest that it’s a local game only played in our state. This plays out with our branding “spokescreatures,” aliens Zendar and Marlex, who come to Nebraska because it the “only place in the universe” you can play Nebraska Pick 5. Besides ongoing branding, we highlight the jackpot once it hits $100,000 in the same multimedia approach as we would with Powerball and Mega Millions.

We don’t have a maximum jackpot where our advertising stops. The radio mentions that kick in after the $100 million mark talk combine jackpot awareness with a play responsibly message, which is a good message to keep repeating as the jackpot grows.

New Jersey LotteryFor Mega Millions and Powerball, we apply a comprehensive

tiered support strategy to both our owned channels (retail network footprint, website, mobile app) and paid media channels (radio, television and digital advertising). Additionally, we ensure that when discussing or talking about the jackpots, we always reinforce Where The Money Goes and Responsible Play messaging. This is of particular importance during epic jackpot rolls as players should be reminded to be responsible, but also be aware that any non-winning experience helps support state-run beneficiary programs.

For our in-state Pick-6 XTRA Lotto game, we use a combination of tactics when supporting consumer facing promotions and game-specific brand communication. Our strongest channel in New Jersey is our owned channel – our current network of retailer partners. We leverage these brick and mortar locations heavily and typically create multi-touch point point-of-sale display to educate, inform and attract players around any given initiative.

When either national game (or both) roll to $150 million, our support plan kicks in. Our first tier of communication is television advertising. We contract with WPIX (a New York broadcast station that covers northern New Jersey) for our nightly televised draws. Part of this contract includes bonus snipes and a media bank that we can use to support jackpots when needed. We also utilize our year-long accumulation of cable bonus television spots to advertise the large jackpot levels.

The second tier of support includes radio and digital advertising and affords us approximately 35 full rolls a year in radio. We run a mix of :10 and :15 ads that announce the game and the current jackpot level on a mix of New Jersey, Philadelphia and New York stations. We also use digital media to support our jackpots – in particular, we push digital ad units with Pandora while our radio flights are in market to cast a wider net to reach a greater audience.

Our third tier of support is out of home (billboard) and retail advertising. We have 12 permanent billboards throughout the state that are dedicated to Mega Millions and Powerball (and were updated to reflect billion dollar jackpots prior to the epic $1.58 billion Powerball roll). During the summer along the Jersey shore, we run aerial banners on Fridays, Saturdays and Sundays


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for both Mega Millions and Powerball, giving preference to whichever jackpot is higher at the time. In the retail space, we arm our lottery sales representatives with jackpot tear pads, stickers and extra terminal paper, and ensure that the jackpot levels are heavily represented on our video display units.

We typically will turn off paid media when the jackpots reach levels of $300 or $350 million, as earned media kicks in and helps support the message to a wider audience. However, we continue to support jackpot rolls long after this point using our owned channels. As the jackpots roll, we dedicate additional real estate to this messaging on our website, mobile app, VIP club emails and social channels.

New York LotteryWhile we believe that Powerball and

Mega Millions are currently being led by the jackpot amount, it is necessary to get the word out on current jackpot levels between certain thresholds that are meaningful to players. For us, we begin jackpot announcement advertising at $150 million and continue until the media begins to pick up the story. Typically, we stop paid advertising support of jackpots around $300 million. Although we recognize that for most players, that threshold is creeping upwards. To that end, we plan to do some strategic work later in the year on the effects of “jackpot fatigue” to determine if there is a way for us to encourage New Yorkers to play at lower jackpots, in addition to the giant ones. After all, there is nothing wrong with a $75 million win!

In the past, we used to support high jackpot amounts with television advertising, radio and newspaper. However, in analyzing the data, we determined that the jackpot itself was the true driver of sales. As such, we have modified our approach so we now leverage radio live reads and newspaper cover strip ads to build awareness of jackpot amounts for Powerball and Mega Millions for a much more cost effective approach. We also have a significant network of out-of-home jackpot billboards across the state, plus electronic kiosk units in the five boroughs of New York City. This, combined with our extensive network of retailers bearing dual jackpot LED signs, builds

awareness of the jackpot at all levels. Research indicates that players do rely heavily on the LED signs for finding out the current jackpots.

For our in-state jackpot game, Lotto, we recently ran an extensive advertising campaign to generate excitement around the brand as a New York icon and to encourage average New Yorkers to play the game. With average jackpots far lower than the big games, Lotto needed a boost beyond simply announcing the jackpot amount. To make Lotto more relevant to the lives of every day New Yorkers, we focused on the fact that over the years, Lotto has made more New York multi-millionaires than any other jackpot game. The campaign, “You’d Make A Way Better Rich Person,” ran in November-December 2015 and looked at the eccentric lives of Rich People and showcased some of the crazy things they do with their money (e.g., buy a penthouse for their yorkie, buy solid gold staples, take therapeutic baths in wine, etc.) then acknowledged that we savvy New Yorkers would spend it way better if we won the Lotto jackpot. Each ad signed off with the line “With two plays for a dollar, Lotto makes more New Yorkers rich than any other game.” We ran television, radio, OOH, print and robust digital and social efforts, which included an illustrated digital field guide and interactive quiz playfully depicting our loveable, eccentric Rich People of New York. Sales for the game were up by 3 percent during the campaign after years of declines in the double digits. The campaign received high marks within the advertising industry, as well as with consumers.

North Carolina Education LotteryWe have focused on providing

information on current jackpot levels and raising general awareness for Powerball and Mega Millions. As the jackpots for these games grow, we add communication channels to aid awareness. Outdoor billboards are used year-round on high traffic interstates for top visibility and secondary roads to reach consumers while they are near a sales location. Many lottery retailers also have jackpot signage at their location which displays the current jackpot for these games.

Research indicates that players do rely heavily on the LED signs for

finding out the current jackpots. - New York Lottery


INSIGHTS MaY/June 2016 69

The jackpot message is provided at the point of purchase through multi-media monitors beginning at $150 million. It also displays on all draw game tickets when the jackpot reaches $200 million.

At $150 million, the script for the live evening drawing is used and studio talent provides the jackpot following the draws. Also at $150 million, metro radio is added with a focus on morning and evening drive time. Radio has been an effective mass reach vehicle to connect with consumers while they are on the go and close to a lottery retail location.

Although radio ads typically begin at $150 million, we have opted in some instances to start earlier in a roll. Ads have come off air between $500 million to $600 million or when local/national media coverage has taken over.

Ohio LotteryThe strategy is to keep the jackpots

top-of-mind through multiple touchpoints and add additional paid media layers as the jackpots increase. We use our owned media platforms (website, closed-loop video retail network, mobile app, mobile website, Facebook, Twitter, Instagram, in-store signage, etc.) and out-of-home billboards to promote current jackpot amounts, then add radio, updatable digital video pre-roll and paid Facebook on draw days when a jackpot exceeds $125 million. We typically stop paid media once the jackpot reaches $500 million.

Ontario Lottery and Gaming Corp.For our national lotto products, we

bucket jackpots into key thresholds (typically levels that show good consumer response) and optimize sales through graduated media and promotional support to achieve the best result. To do this we put in place a base layer of 52 week ready media to ensure that we have minimum support levels locked in. As jackpots reach optimization levels, we increase media support to build reach and create market excitement. This strategy is employed across all media including owned assets (e.g. jackpot message rotation increases as jackpots grow in OLG owned web/mobile/in-store digital screen assets).

For regional products, the strategy is to anchor major advertising campaigns

to product relaunches in order to increase awareness and play of existing games. This approach has a multiplier effect by informing existing players of new enhancements to the game and by motivating non-players to try games they were previously unaware of. Subsequent annual support campaigns (2-3 months duration) have helped to keep current players engaged while also attracting new players and building a stronger baseline for the business each time they are executed.

For national games we employ a “Message Management Strategy” to deliver the right message at the right time. For example, when Lotto Max hits $50 million and additional MAXMILLIONS prizes are added, our advertising focuses on delivering the big jackpot news. At base jackpot levels we might support a winner campaign.

Lottario is the only regional product that has a dynamic jackpot from week to week. This year we are testing a jackpot optimization strategy similar to national that utilizes reactive digital media to drive awareness of jackpots over $500,000.

All jackpots are supported through advertising which is increased as the jackpot grows. For Lotto 6/49 we increase support at $20 million and again at $30 million. Lotto Max has base support until the jackpot hits $30 million. Support increases again at $50 million when MAXMILLIONS are available, and then we have a third optimization level when we hit key thresholds such as total top prizing (main jackpot plus MAXMILLIONS) of $100 million or more.

Oregon LotteryWe heavy up advertising at “Jackpot

Alerts” – essentially hitting all our major media (TV, digital, billboards/outdoor, digital billboards, limited radio, social media) when the jackpot levels rise above $150 million for Powerball/MegaMillions and at $5 million for our in-state game, Oregon’s Game Megabucks.

We currently turn off paid advertising at $300 million on the national games and at $8 million on our in-state game.

Pennsylvania LotteryThe Pennsylvania Lottery advertises via

permanent out of home jackpot boards, digital boards, online banners and triggered

The strategy is to keep the jackpots

top-of-mind through multiple touchpoints and add additional

paid media layers as the jackpots

increase. - Ohio Lottery


radio and TV. On our draw game tickets, marketing messages advertise lotto games.For digital out of home, we begin advertising at $200 million. For triggered radio and TV, we begin advertising at the $300 million level. We include a “Please Play Responsibly” message at that jackpot level. We do not have an end level for paid advertising.

Loto-QuébecOur advertising strategy for both

national games is to make sure the brands are always top of mind by having a media presence in TV, web and billboards all year. Each week, depending on the jackpot level of each brand, we decide to advertise one or both games. Above that, we have a media plan for each brand that we activate depending on the jackpot level. When the Lotto 6/49 jackpot reaches $20 million, or when Lotto Max reaches $50 million, we activate a media plan that includes print, radio, web and outdoor. The media plan changes slightly from a level to another, and we invest more and more as the jackpot keeps getting higher.

Rhode Island LotteryWe typically advertise when the

jackpots are high, but we did run the advertising campaign when the Powerball game changed in October 2015. We will also typically advertise any promotions we run.

We are evaluating the best levels in which to implement advertising since the matrix changed, but we have been starting our radio buys when the jackpot is around $140 million and then adding television when the jackpots reach $180 million. We usually stop running TV ads first when the jackpots reach the point where they may change prior to the drawing. We stop both radio and TV ads when the PR picks up and there is no longer a need to spend the money for awareness.

South Dakota LotteryWe continuously advertise our lotto

games via our website, social media platforms, jackpot signs, Players Club emails and our retail monitors. The message varies from informational (cost per play, reminder about draw days and

times, how the multiplier option works, etc.) to jackpot alerts depending on the amount. We also post winner counts on our website and social media after every two-day draw period (Tues-Wed, Fri-Sat) showing the number of South Dakota Lottery winners for each game on that specific draw night and the total amount of prizes won in South Dakota for each game for that draw night.

For Powerball and Mega Millions, we’ve utilized jackpot alerts via :30 radio ads and digital billboards once the jackpot reaches $250 million. For additional exposure, we promote the growing jackpot through the website, social media, Players Club emails and the issuance of press releases if the jackpot amount is raised in-between draws due to increasing ticket sales. For our other lotto games – Hot Lotto and Dakota Cash – we’d consider digital billboards if the jackpots reached record levels for the game.

We end paid advertising when traditional media coverage, social media coverage and overall “chatter” about the jackpot has reached such a level of


public saturation that paid advertising is unnecessary to promote the jackpot further. For Hot Lotto and Dakota Cash, the jackpot ads would begin when the jackpot reached a record level and continue until the jackpot was won.

Texas LotteryFor our lotto-style jackpot games,

real time jackpot communication is utilized via radio live reads, social media and digital point of sale. Geo-fenced mobile ads and dynamic out of home billboards are also used to support multi-state games communicating their high jackpots. Mobile advertising promotes the multi-state jackpot game with the highest jackpot. Radio live read calendars are developed with a mix of scratch and draw.

Once jackpots hit the $200 million jackpot level messaging supersedes previously scheduled product messaging. Out of home jackpot billboards and digital signage run year around regardless of jackpot.

Jackpot radio live reads begin at $200 million and end once the jackpot is hit.

Western Canada Lottery Corp.National lotto games are our #1

priority. Almost all media is directed to support lotto jackpots when warranted. We believe in a three-pronged advertising platform for lotto: brand (compelling consumer benefit, for example HOPE for Lotto Max), jackpot and winners (the more regional/recent the better). Regional games cannot deliver as strong an advertising ROI and as a result we do not invest heavily in advertising them other than when launched. The regional lotto games tend to mirror the national games for sales growth, as many are purchased as a package with the national games. Jackpot messaging should be baked into all creative. All media should be able to traffic jackpot brands when necessary.

The trafficking of our base media buy is done by daypart/by day. As a general rule of thumb we begin at $20 million for Lotto 6/49 and $50 million for Lotto Max. As the jackpot grows and/or as the draw day nears, more TV, radio, digital outdoor online and mobile advertising is allocated

to the game. In periods of low jackpot activity and days when lotto draws do not occur, the media is reallocated to other messages such as winners, scratch tickets, etc. We also have ‘heavy up’ ad dollars to employ for very large jackpots to further increase our message reach and frequency.

Wisconsin LotteryWe use a variety of strategies. We run

television continuity branding programs for Powerball and Mega Millions and digital outdoor, social media and emails for jackpot updates. We use sports packages that include radio, in-stadium elements, ribbon boards, game programs and social media: Powerball is supported with the Milwaukee Brewers; Mega Millions is supported with the Green Bay Packers; and Wisconsin’s Megabucks is supported with the Milwaukee Bucks. Limited time offers on lotto games are supported by television ads and point-of-sale. We utilize free earned media statewide through press releases and interviews – issuing targeted press releases when winners come forward who have won $50,000 or more and statewide press releases for large jackpots and winners of large jackpots.

All Powerball and Mega Millions jackpots are supported by digital outdoor. When the jackpots reach $100 million, we begin digital display ads, mobile display and paid social posts. All jackpot levels are shown on digital outdoor on draw days. For digital outdoor on non-draw days, Powerball jackpots begin at $240 million and Mega Millions at $100 million.

Wyoming LotteryThe Cowboy Draw in-state game

was developed to reflect the state of Wyoming and its pioneer spirit. Because residents of our state value loyalty and supporting home grown products, WyoLotto players embrace and support our state game. We focus our marketing efforts on the value that this game brings to the Wyoming Lottery and we highlight our Cowboy Draw winners as often as possible. We have a high payout percentage of 68 percent and typically produce between 15 and 30 $1,000

winners a week.Powerball and Mega Millions are

supported primarily through trigger jackpot marketing and communications efforts. It is important that our advertising strategy is designed to promote varying jackpot levels. At different jackpot triggers, we use different tactics to motivate play and bring awareness to high prize levels. When the Powerball game changed we focused on those changes and the benefit to the players beyond our standard trigger tactics. We did this by launching the “Bigger” campaign that focused on how everything Powerball-related was getting bigger.

Our trigger advertising strategies direct that different tactics and spends be executed depending on the game and jackpot level at hand. Tactics include mass media, digital advertising, email marketing, PR and social media outreach. Our tactics at each level stay consistent until the jackpots reach $400 million. Once they exceed that level, the buzz throughout the country begins to happen organically and awareness is generated through the media at a high level and doesn’t require state-specific advertising. So we rely more heavily on PR and earned media efforts and back off of mass and other paid advertising techniques.

Also, to allow us to be the most efficient with marketing budgets, we strategize and evaluate the need for executing trigger campaigns based on defined criteria which could include current sales, competing promotions, performance of all products in the portfolio, etc.

For Powerball and Mega Millions, jackpot ads are created at $100 million, $200 million and $300 million. For Cowboy Draw, ads are created at $350,000 and $500,000.


Atlantic Lottery: Advertising of lotto games is essential. These games are highly impulsive in nature and it is essential to keep them top of mind. We are putting out a new advertising campaign three times every week with a new message.

British Columbia Lottery Corp.: Definitely, advertising plays a critical role in moving the needle on sales. The bottom line is, if no one knows about or is engaged with your brands, it doesn’t matter what the jackpot levels are because the consumers will not be interested. Building strong brand equity and staying top-of-mind is crucial to stay in the consumer’s consideration set. To this end, we continually conduct our

own research and review industry research that supports the effects that advertising has on consumer perception and purchase intent. As for high jackpots, yes they do generate buzz and excitement that drives sales, and advertising support is needed to capitalize on that buzz and increase awareness about the jackpot.

Colorado Lottery: Jackpot levels are clearly the driving force for sales. However, there is something to be said about feeding the fire. Since higher jackpots are motivating, we do believe advertising can serve as a tool to alert players when the jackpot is high, and remind them in a timely fashion (i.e. on their drive home) to stop and purchase a ticket.

Delaware Lottery: We have found that sales are driven by jackpots. DC Lottery: No it can’t. At least we can’t identify any perceptible increase in sales when we start kicking in a little more advertising when the jackpot crosses $100 million. Before the billion dollar jackpot, it took as much as $500 million before the needle started moving. I guess that won’t be a big deal anymore. We all wanted that and we got it – now what’s next?

Florida Lottery: It brings a little more awareness and we see a slight bump in sales.

Georgia Lottery: Advertising definitely drives awareness, which drives sales.

Does Jackpot Advertising Work?Can advertising lotto games “move the needle” or are sales of these games driven entirely by jackpot levels? That is the question we asked lotteries, and not surprisingly, given differences in markets, game mix and demographics, opinions vary, with “yes,” “no” and “maybe” scattered among the responses. The consensus seems to be that advertising is important to keep the games top of mind no matter what the jackpot level, but that jackpots are the ultimate driver of sales. Here’s a sampling of lottery opinions, from the succinct to the elaborate:


However, we see the major increases in sales once jackpots start getting in the $300 million-plus range. At this time much of this sales lift is organic though the media does drive a lot of the “lotto fever” phenomenon, which self-perpetuates.

Idaho Lottery: About a year ago, the Idaho Lottery introduced a special promotion to support Mega Millions sales. Based on initial success in the testing phase, the Lottery continued to offer the promotion year round and have supported it with mass media and social media advertising. Players who participate in Mega Mondays buy at least $5 in Mega Millions tickets on Monday and receive a voucher they enter online or through tele-entry for a chance to win $1,000 cash the following week. This promotion encourages players on two fronts: to increase their normal purchase from about $3/transaction to $5/transaction, and it also encourages growth in the regular player base for Mega Millions. Although the average daily announced jackpot for Mega Millions has been lower than the previous two years, Mega Mondays in Idaho has been successful. On average, 42 percent of the tickets eligible for the weekly draw are entered. Year over year, Mega Millions sales on Mondays are up 14 percent. Other than draw days, Mondays are now the highest selling days for this game.

Iowa Lottery: We do believe advertising lotto games can generate added sales from occasional and new players, and from our customers that play scratch games regularly. Advertising will kick-start play from the jackpot chasers. The core lotto players will purchase regularly regardless of the jackpot estimate.

Kansas Lottery: While it cannot be denied that high jackpots are always the primary drivers for draw-based

games, we do believe consistent strong advertising can also boost sales in the long run. We have seen a continuation of increased sales since the $1.58 billion jackpot was hit with the jackpot awareness campaign.

Kentucky Lottery: Advertising and awareness are extremely important for these games at base jackpot and high jackpot levels. It is Kentucky’s strategy that the fear of loss resonates no matter what the jackpot amount is. And jackpots are more frequently “low” as opposed to “high,” which is why we keep a 52 week schedule with Powerball and Mega Millions.

Louisiana Lottery: As with all lotto-style games, jackpots drive sales.

Maryland Lottery: Our advertising for jackpot games focuses on the jackpot amount, as we’ve found that to be the primary reason consumers play these games.

Michigan Lottery: Our experience is that it’s all jackpot-driven. There’s a core group of players that play every single draw. As the jackpot increases for these games, they will play a little more, because they are very sensitive to that jackpot growth. It doesn’t make sense to advertise those games before you get to certain thresholds where we see sales sensitivity. At those levels, that’s when you really start to see the uptick in sales, and that’s probably when you are getting

increased sales from frequent players, but you are also starting to get some interest by infrequent players as well.

Nebraska Lottery: These games are jackpot-driven for the most part. With that said, we would see less sales without jackpot awareness advertising. How noticeable of a sales decrease is a question that would be hard to measure for a variety of variables. While it may not “move the needle,” jackpot advertising does pay for itself by reminding the core player to purchase, and encouraging the infrequent player to play or at least keep the game top-of-mind or on the radar when it comes time to play for a big jackpot with a pool or otherwise. We have a total of 25 jackpot billboards for Powerball and Mega Millions across Nebraska that, combined with the lighted jackpot signs at 60 percent of our retailers, are very effective in providing awareness for our jackpot games. If jackpot awareness advertising were to stop across the board, we would see noticeable decreases in sales at similar jackpot amounts over the course of a three to five year time period.

New Jersey Lottery: Yes, within reason. While the jackpot levels are the true drivers of participation rates, offering incentives of value to players can help drive momentum after a jackpot roll or during periods where jackpots have been hit with high frequency. Typically successful incentives include couponing and bundling jackpot games together with some value proposition (e.g., savings or extra offering).

North Carolina Education Lottery: Absolutely. We analyzed per capita sales for our Powerball game to see how radio advertising on just the jackpot amounts boosted per capita sales. When the radio advertising started, North Carolina’s per capita Powerball sales were trailing

Advertising and awareness are extremely important for

these games at base jackpot and high jackpot levels.

- Kentucky Lottery


the national average. During the campaign, the Powerball jackpot climbed from $194 million to $380 million. North Carolina per capita sales climbed 18 percent during that same time period and ended up beating the national average by three percentage points. Jackpot levels are a huge driver of sales, but awareness through point-of-purchase channels has not been enough for us. With the addition of traditional broadcast media (radio), we have been able to boost sales significantly. Promotions have also been quite successful. That said, we believe that greater familiarity and understanding of how to play Powerball and Mega Millions can also drive sales. We hope to pursue a branding campaign in our next fiscal year.

Ohio Lottery: Advertising helps sustain your sales pace until a large jackpot roll occurs.

Ontario Lottery and Gaming Corp.: Absolutely. OLG has conducted several Return On Marketing Investment (ROMI) studies which clearly show a direct link between advertising media spend for big national jackpots and increases in sales. In fact, we used this work to inform our optimization strategy including which media deliver the best results. Advertising of regional games with fixed or small jackpots like Ontario 49 and Lottario has proven to be very successful.

Oregon Lottery: We’ve been keeping a close eye this and it seems that the biggest sales leaps always kick in at the $100 million tier for the national games. We’re certain that advertising could move the needle at lower amounts, but the cost is prohibitive based on the need to advertise our other products, not to mention the cost/benefit and profitability of other seasonal/campaign based products. That said, we are researching what ways we could advertise at the jackpot resets to see if there is a way to increase awareness and sales.

Pennsylvania Lottery: Advertising can build awareness, especially for new games, but largely sales are jackpot-driven. We have seen success with advertising promotions (Buy X, get Y free).

Loto-Québec: Of course, the sales are driven by the jackpot level, but also by a lot of different variables. We believe that advertising helps us “move the needle.” It helps us keep the brand top of mind all through the year, but it also communicates the jackpot which is an important driver. Also, we notice that when the jackpot is won in our region, it has an impact. In 2015, the Lotto Max then-record jackpot of $55 million was won in Québec and this great news was highly supported by our public relations activities and advertising. We saw an increased in our sales after that – not only for Lotto Max but also for Lotto 6/49. We made a TV spot about all the winners the big lotto brands had created in one year. We believe it had also an impact on sales and on purchase intent.

Rhode Island Lottery: Jackpot levels seem to have the biggest impact, but the advertising at those jackpots is certainly necessary to get the word out and increase awareness.

South Dakota Lottery: In our experience, our players are mainly motivated by the jackpot levels but advertising those jackpots can also move the needle. For example, in 2014, analysis of lotto sales at retailers near the digital billboards advertising the jackpots showed a difference in overall sales at jackpot levels about $250 million as compared to retailers not located by the billboards.

Texas Lottery: There is no question very large jackpot levels are a significant driver of draw game sales. The threshold to gain “free advertising” (media coverage) on lotto-style jackpot games has increased significantly with the recent $1.58 billion Powerball jackpot.

In order to increase sales at lower jackpot levels, it is paramount to have a 360° advertising approach in place to keep the jackpot amounts front and center in the minds of our consumers. Consumers must see these amounts in retail, out running errands and hear them in their car, home and/or at work. Our consumers who utilize digital content must also see these jackpot amounts while navigating through their digital and social media content. While we can never guarantee which of these advertising touch points will trigger a purchase at retail, working in combination we can create strong awareness among consumers and create optimal opportunities to trigger that reminder to play. Texas will be adding another digital touch point this year with the launch of our mobile app. With all of this in place it allows us to keep jackpot game sales steady and growing until that big “roll up” happens again.

Western Canada Lottery Corp.: Both. Jackpot level is the #1 factor. But brand advertising and winner advertising can also be effective.

Wisconsin Lottery: When we expanded our use of digital outdoor advertising, average sales at comparable jackpot levels increased about 13 percent. Media coverage at high jackpot levels is very important, and digital outdoor advertising also helps make consumers aware of the jackpots.

Wyoming Lottery: We have seen success in moving the needle during new product and game change launches – with an appropriate media buy for maximized reach and awareness, we have exceeded sales forecasts at these launches. However, similar to other lotteries around the country, we understand the most important factor to increase sales is by maximizing high jackpot levels, bringing greater awareness of these levels to support these key times to motivate play.


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Conference Sessions September 13th & 14th Evening Receptions September 12th, 13th & 14th

Unlocking the Power of Integration

Connecting New Media,Modern Lifestyles,

and the Lottery

First there were the four P’s (Price, Product, Promotion, Place), then the more consumer-centric four C’s (Consumer, Cost, Communication, Convenience). Or maybe you prefer Shimizu’s four C’s (Commodity, Cost, Communication, Channel)?

In the modern world of Mobile, social media, lifestyle diversity, and the explosion of consumer options - it’s time for an update. We need a coherent vision, a model that grounds our thinking, for how the modern consumer marketplace actually functions, and how to build the relationship with the consumer that will blossom well into the future.

At Lottery Expo 2016 we’ll start to connect these dots, with a large dose of practicality and focus on the specific needs of Lottery. Think futurist Alvin Toffler meets pragmatist Peter Drucker to build the marketing model that connects Lottery with the modern consumer and the marketplace of the future.

Lottery Expo provides a unique forum for industry leaders to address the challenges and opportunities that face our industry today. We hope to see you there!

Visit PublicGaming.org to register, reserve hotel rooms, and for conference updates Gaming news website: PublicGaming.com Video presentation website: PGRItalks.com

[email protected] Call: U.S. + 425-449-3000

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Not surprisingly, promotions in which players can win extra cash are the most popular,

but experience varies with respect to what games work the best even for these opportunities. Those lotteries with monitor games (mostly keno) generally find the players are very receptive to promotions on those products. Elsewhere, what works for some lotteries may not work at all for others. Buy One, Get One promotions are common, as are reduced-rate Sampler offers and Doubler or Tripler winning bonuses. In Canada, the relaunch of Lotto 6/49 in 2013 included a guaranteed $1 million prize draw, and that has given them the opportunity to schedule periodic Super Draw promotions, which have been a resounding success.

Ultimately, it’s up to each lottery to find what games and promotions its players respond to the most. In this roundup, we asked NASPL members what draw-based games are most

influenced by promotions and to share examples of promotions that worked well, and perhaps not so well. You will find a lot of ideas – and widely varied experiences – in their responses.

Atlantic LotteryOur most successful promotions

have been associated with our national game portfolio and specifically Super Draws on Lotto 6/49. These promotions are offered nationally each year and are designed to provide frequent market events (talk value), reinforce the Guaranteed Prize Draw (GPD) aspect of the game, maintain long-term brand health, generate incremental revenue and return money to player. Since 2013 we have tested various GPD promotional permutations. These promotions are the most successful because they are national, so the prizing we offer can be significant and the prizing is guaranteed. The promotions are generally centered on key times of year such as Christmas and Valentine’s Day.

We have offered promotions on our regional game Atlantic 49 in which we doubled the guaranteed prize. This promotion had limited success because of the limited amount of marketing support we put behind it and the smaller, niche player base associated with this game.

British Columbia Lottery Corp.Our regional brand, Keno (Quick

Draw), has had a lot of success with promotions given the very engaged and active player base. Nationally, the Lotto 6/49 Super Draw promotions (where additional guaranteed prizes are offered) have also been quite successful.

This fiscal year, we will be running Keno Doubler for a 10th time, where on random tickets a Doubler message will appear which doubles your win. It drives a lot of excitement with our player base, which is one of the key reasons why it’s been so successful.

Regionally for Lotto Max, there is a Free Extra promotion where during a specific time period consumers get a free Extra (spiel game) if they purchase the $20 Lotto Max package. This promotion works particularly well when jackpot levels are high and retailers help upsell consumers to this package.

Colorado Lottery

We tend to see that Powerball is more influenced by promotions than any other game in our portfolio, especially when there are larger jackpots. We

Promotional PlayLotteries are always hard at work looking for ways to put some sparkle in draw-based games. Lacking the infinite variety of scratch tickets, and in many cases subject to extreme swings in jackpots, draw games present a challenge for every lottery. Because these games are so critical to bottom-line profitability, lotteries have met this challenge head-on with a number of tools in their arsenals to encourage trial and longer-term game loyalty.


utilize Powerball as a qualifier and one of our in state games as the reward. In addition, promotions are very effective when launching a new game.

When we launched Pick 3, we gave away a Pick 3 ticket with every purchase of one of our in-state games (Lotto and Cash 5). This promotion really got the word out about the new game; we had the highest unaided recall of Pick 3 that we have ever had for a game in our portfolio.

We recently did a Jackpot Sampler, where a purchase of all five of our jackpot games saves $1. The Sampler did great and we actually ended it a little earlier than we planned, because it overlapped with the huge Powerball jackpot in January. (There was never a set end date given to players or listed on POS.) We set the sales goal for the Sampler way back when, and once that was met, it made sense to end it a little early. But we did have it active for more than two months! We’ll likely bring it back another time because it was quite popular once the word got out about it.

We frequently do Buy X in Powerball or Mega Millions, Get Y (generally Lotto). Those types of promotions are planned about a month in advance.

Delaware LotteryKeno is most influenced by

promotions, and we have monthly

retailer and consumer promotions. Second chance drawings are the most successful. Two promotions to note:

Keno Doubler – On Thursdays in June, we doubled the winnings on the 1-6 spots prizes. Of course, players love to win more, but during this particular promotion sales increased about 30 percent.

Keno Hottest Spots – Players were able to send in non-winning tickets for six weeks for a chance to win a four-day trip to the beach or tickets to a music festival. This promotion produced about a 20 percent increase in sales during the six week period.

Sampler promotions have been least successful. They tend to be more of a reward to players than a promotion to drive/increase sales.

DC LotteryOur monitor games Keno and

Race2Riches are the two games most influenced by promotions. We do promotions once a year for each game, called Sprinkler promotions, or Doubler or Tripler promotions. On an nth basis, a winning ticket is doubled or tripled. When we do that, we get double-digit sales increases, anywhere from 10 to 20 percent, every time. The players love it.

Outside that, it can be very challenging to really see a true sales lift from some of the promotions that

we do, so sometimes we just refer to it as “defensive marketing.” We have to get out there in the marketplace and promote the games, so it’s more of a rewards program to the extent that we are offering a deal, or a discount, or a promotion on a draw game. Something to reward the players and keep them engaged; we don’t always see an actual sales lift.

Here in DC, numbers games are still about 55 percent of our total sales. We have tried every promotion that exists in the lottery industry for numbers games, but we never see a sales lift for those games, with one exception. That was a promotion we did last year called Tax Time Bonus. We identified the top 50 numbers games retailers in DC and for a four-week period at those retailers, there were vouchers for cash prizes printed on an nth basis. We actually saw a 10 percent sales lift for Pick 3 and Pick 4 during that four week period, and that was a very significant lift for us. It was definitely the most successful thing we’ve ever done for numbers games.

Florida LotteryIn the early years, our most

successful promotions were second chance drawings in our Florida Lotto game. We gave away 50 cars in the annual Lottomobile promotions that ran from 1994-1998. From 2006 through 2012, we had a great deal of success with promotional raffle games in $20, $10 and $5 price points. Prizes have included cash of up to $1 million, cars, and gas for life. Since 2008, we have conducted annual strategic alliance promotions with Florida college football teams to give away game tickets, team merchandise and trips.

In an effort to reach younger players, we have conducted two Collect & Win promotions using mobile app technology, giving away cruises, tablets and cash. We had tens of thousands of players participate by downloading the app or visiting the promotion websites to collect symbols and earn entries. Over one million Florida Lotto tickets were entered in each Collect & Win promotion.



In recent years, two of our most successful promotions are a Grouper (sampler) promotion and an EZmatch promotion. In the Grouper promotion players get a $6 value for $5 including Florida Lotto, Fantasy 5 with EZmatch, Cash 3, Play 4 plus a free Lucky Money ticket. It cross-promotes all of Florida’s in-state draw games and provides added value to players since they get a free ticket. Since 2007, we have offered periodic EZmatch promotions with an increased promotional prize structure in which the top prize doubles from $500 to $1,000. Now that we have EZmatch on Fantasy 5 and Lucky Money, we can promote two games at once to maximize our returns. Offering these promotions a couple of times a year allows us the opportunity to add a little excitement to the games and increase the brand recognition and player loyalty.

Draw games promotions involving the jackpot games are more difficult to show a return because the jackpot size has such an effect on sales.

Georgia LotteryKENO! is probably one of the most

sensitive to promotion. When we conduct KENO! Bonus Hours, which are well received by our core players, we always see an increase in sales during the actual promotional period. During these KENO! hours, we pay higher payouts by either 30 percent or 50 percent on prizes over the period. All winning tickets during the two- to three-hour period would be increased by 30 percent or 50 percent, depending on the promotion.

All of the promotions we do bring awareness to the product. We don’t always see a direct correlation to an incremental sales lift. However, we often position those promotions as branding exercises, strategically speaking.

Idaho LotteryOur secondary games are not always

jackpot driven and are not always top of mind for players. Promotions are a great way to refresh interest and broaden the player base of any particular game. They need to be relevant and capitalize on opportunities. For example, a year ago on St. Patrick’s Day we offered a buy three get one free Lucky for Life promotion. Sales were off the charts for the game that day. During a big jackpot run on Mega Millions in December 2014, we offered a Lucky Friday the 13th promotion where, for two hours from 4pm to 6pm, players who purchased a $10 Idaho $1,000,000 Raffle ticket received a free Mega Millions ticket for that night’s $425 million jackpot. During the two hours, we sold 9,187 Idaho $1,000,000 Raffle tickets.

The Idaho Lottery sponsors college athletics at Idaho’s public colleges and universities, including the Boise State Broncos football program. Over the years, we have provided a bowl trip experience for one lucky fan and a guest who receive a VIP treatment and a trip

to whichever bowl game Boise State attends. Today, this is called the Bronco Bowl Bash, where players purchase a $10 Powerball ticket and receive a voucher to enter online or through tele-entry for their chance to win the trip.

This promotion is an outgrowth of one of the single best promotions we offered back in 2006 when Boise State first went to the Fiesta Bowl. Called Fiesta Bowl Fever, that promotion was put together in less than 72 hours and saw nearly 10,000 entries in just 18 days with support from only live radio liners, e-mail blasts to our VIP Club and very limited point-of-sale materials in retail locations in and around Boise. So successful, that when Boise State returned to the Fiesta Bowl in 2009, we offered the promotion again with similar success.

In the past three years, Bronco Bowl Bash promotional winners have seen the Hawaii Bowl in Honolulu, the Fiesta Bowl in Phoenix and the Poinsettia Bowl in San Diego. Typically for the fall Bronco Bowl Bash, the Idaho Lottery averages about 20,000 entries over an eight to ten week period.

Kansas LotteryDuring the NCAA tournament

when many players gather in social environments to watch their favorite schools, we run Keno Madness


promotions in which players can enter their Keno tickets to win second-chance prizes such as autographed merchandise from their favorite teams. We have also offered Keno Tripler promotions in which every nth ticket is designated a tripler ticket on which the player can triple a winning prize.

We had a promotion a couple of years ago where with $5 in Super Kansas Cash purchases, you’d get a voucher to enter for one of 25 $2,500 gift cards from a company selling Kansas sporting apparel and more. In the five month promotion, we had nearly 270,000 entries. The promotion generated nearly $1.4 million in Super Kansas Cash sales just from the tickets entered.

Kentucky LotteryKeno and Lucky for Life do well

with second chance promotions, while Buy X get Y promotions work well for Powerball and Mega Millions. We usually reach our liability when running these terminal game promotions.

Every year we execute a second chance promotion through our partnership with the Kentucky Derby Festival, where one lucky player is named the Festival Fanatic and enjoys several Derby Festival VIP experiences, including the opportunity to push the ignition switch to start Thunder Over Louisville, the largest annual fireworks display in North America. This is truly a once in a lifetime opportunity that money cannot buy. Every year we receive roughly 8,000 entries for the

promotion, regardless of the draw game that serves as the eligible ticket for entry into the promotion.

Last year we executed a Start Your Engines promotion with the Kentucky Speedway where the grand prize winner received a VIP Experience at the July NASCAR Race Weekend at the Kentucky Speedway. This prize included best-seats-in-the-house tickets for the race in an exclusive Kentucky Lottery VIP area, pace car rides and passes to the driver/owner meeting. Similar to the Festival Fanatic promotion, these are all unique experiences that cannot be purchased and are only offered through this Kentucky Lottery promotion. Players entered with Lucky for Life tickets worth $2 or more, and we received roughly 5,000 entries.

We ran a second chance promotion where we gave away tickets to the iHeart Radio Music Festival in Las Vegas courtesy of our media partnership with iHeart Media. Players could enter non-winning Powerball or Mega Millions tickets worth $10 or more for a chance to win. We were surprised that we only received 2,000 entries between both games for this promotion as we expected several more entries given the total prize/trip value. However, this may have been a result of the $10 minimum purchase requirement, which is higher than most of our qualifying purchase amounts for second chance promotions.

Louisiana LotteryWe find draw-style game promotions

work on a limited basis and rarely have a lasting or residual impact on sales beyond the promotional period. Perhaps that is why states that launch games with an add-on component seem to have higher sales for the add-on than those who launch the add-on product at later time. This has been true with our Easy 5 game, which we launched in conjunction with the instant-win EZmatch add-on component. Sales of EZmatch run about 35 percent of Easy 5 sales, as players became accustomed to the whole package. To further promote the add-on, we have run EZday$ of April promotions, where we increase the payout percentage on EZmatch, resulting in a 36 percent increase in EZmatch sales and a 27 percent increase the percentage of EZmatch to Easy 5 sales for the month.

The 10X promotion that MUSL used to run for Powerball always did well for us, and we saw a slight yet sustained increase in Power Play sales as a result. The promotion provided an opportunity to draw attention to the add-on feature and gave players a reason to try it out. If during the promotion, they found they enjoyed the Power Play or had a winning experience, they were more likely to continue to play after the promotion ended. These types of promotions that encourage product trial can be successful if the player has a good experience.


We have also run a four-month Lotto Lagniappe promotion where those who purchased a five-board, single-draw Lotto ticket also received a raffle entry ticket for a drawing for $60,000 in additional cash prizes. We saw about a five percent increase in average monthly Lotto sales during the promotion, but it was difficult to analyze the results for differences in jackpot size, and the lift was not sustained beyond the promotion.

Maryland LotteryWhile the Maryland Lottery has

implemented many successful draw game promotions, Keno and Racetrax (both monitor games) are perhaps the most responsive. We typically run Keno Sprinkler promotions several times a year. On an nth ticket basis, Doubler or Tripler messages are randomly printed on Keno tickets, and any prizes won on those specially marked tickets are doubled or tripled. These promotions run for a minimum of four weeks, and we’ve found that it takes about 10 days to two weeks for players to become aware of the promotions and begin taking advantage of them.

The Pick 3 Green Ball Double Draw, which gave players an extra opportunity to win, did not do well in Maryland. We decided to give this promotion a

try because it has worked successfully in other states and because we have a strong daily numbers category. We overcame the challenges of needing additional televised drawing time and educating the public, but our players just didn’t respond.

Michigan LotteryWe run a fair amount of promotions

for our Daily 3 and Daily 4 games, and those players react quite well. We try to stay out of second chance and non-winning ticket promotions for draw games, so our promotions are focused on paying out more prizes. That’s typically in the way of 20 percent bonus payout or doubler payouts. When we run those promotions for Daily 3 and Daily 4, we typically get 10 to 15 percent sales increases.

Four or five times a year we also run a Doubler Days promotion for Club Keno, in which an nth ticket is a designated as a doubler ticket, and if they win a prize, that prize is doubled. We are seeing 15 to 17 percent sales increases during the month when those doubler days promotions run, so Club Keno players really respond.

Because of these successes, and because we get a residual sales lift for a few weeks after the promotions end, we are looking at expanding the Doubler

promotion to Lotto 47 and Fantasy 5 this fall.

We also have a Straight Back Bonus promotion for Daily 4 that has run from time to time. A straight bet player who matches their numbers in a reverse order wins $1,000. With that additional way to win, we have seen sales growth in the 10 percent range in the month we run this promotion.

We don’t usually do second chance promotions for draw games because draw players like their games simple and their promotions simple – and they like to win cash. So the simpler we can make it for them to win money, we will get the best results.

Missouri LotteryPromotions that have the greatest

influence on draw game sales are those involving our daily games – Pick 3, Pick 4 and Show Me Cash. All games respond positively to promotions both during and after the promotional period. The Bonus Numbers promotions we’ve conducted with Pick 3 and Pick 4 have been especially successful. Bonus Numbers promotions – also known as red-, green- or orange-ball promotions – involve a separate drawing in which several white balls and one colored ball are placed into a drawing drum. In Missouri, whenever the orange ball is selected, a second set of Pick 3 or Pick 4 winning numbers are drawn, which gives players two chances to win with the same ticket purchase; it can double the number of winners for that drawing. Pick 3 and Pick 4 players follow the results closely to see how many white balls are left and gauge the chances of the orange ball being selected. Bonus Numbers promotions in Missouri have average increases of 15 percent during the promotional period and 6.58 percent for the 13 weeks following the promotion.

Nebraska LotteryWe’ve had good results with

promotions for our in-state games and the multi-state 2by2 game. We used to run a yearly promotion on our in-state jackpot game, Nebraska Pick 5, where prizes were doubled during a specific


month. While some players looked forward to the Pick 5 Doubler promotion year after year, it didn’t achieve our goal of increasing Pick 5 sales. So we’ve replaced the Doubler with a new $10K Jackpot Roll promotion.

We’ve run the $10K Jackpot Roll three times since March 2015, and during the month-long promotion, jackpots for Nebraska Pick 5 increase by $10,000 instead of the regular $4,000. The result is larger, faster-growing jackpots.

The $10K Jackpot Roll promotion has several advantages over the previous Pick 5 Doubler. The promotion can be run with a minimum of marketing support because it is jackpot-based: players notice the higher jackpot amounts and purchase tickets accordingly. The additional prize cost of the $10,000 Jackpot Roll promo is offset by the increase in Nebraska Pick 5 sales. And while sales declined after the promotion ended, the $10K Jackpot Roll promotion had some “stickiness” because a segment of players who started playing during the promotion continued to buy Pick 5 tickets after the promo was over.

We’ve also seen some great results with in-store couponing. In the first three months of 2016, we offered a padded

coupon at retailers for $3 worth of Nebraska Pick 3 for $2 – a $1 discount. Redemption rates for this coupon were excellent, and Pick 3 sales increased while the coupon was available – a great result given that the game has a low top prize ($600) and therefore less sales variability compared to a jackpot-based game.

Our successful 2by2 Tuesday $30,000 Cash Blast! promotion that ended April 24 encouraged players to purchase multi-draw tickets with the 2by2 Tuesday doubler feature, and required the purchase of a 7-draw 2by2 ticket to enter. A follow-up coupon, launched at the beginning of May, allows players to purchase the same 7-draw ticket for $5 – a $2 discount. We hope that the combination of promotion and coupon will encourage players to continue buying 2by2 Tuesday-eligible tickets so they can win double prizes on Tuesdays.

New Jersey LotteryNew Jersey has traditionally been a

jackpot-centric state. Because of this, the non-jackpot games tend to fall into the background and it becomes difficult to keep them top of mind for players and retailers. Promotions have played a

key role in our strategy to ensure these games remain a part of the conversation at retail. Specifically, the daily games (Pick-3 and Pick-4) and Cash4Life have responded well to promotions.

The Collect ‘N Win promotion, developed in partnership with Alchemy3, has been our most successful promotion in support of the daily games. The first iteration, run in December 2014, allowed players to enter Pick-3, Pick-4 and Jersey Cash 5 tickets (winning and non-winning) for a chance to win weekly prizes as well as a Grand Prize of $50,000. Coupons awarded at random throughout the duration of the promotion enabled us to support the entire draw-based game portfolio by encouraging cross-play of all games. The promotion returned a 223 percent ROI and we received very positive feedback from players and retailers. Following some enhancements to the program, we ran a second iteration from March 7 to April 3, 2016. Once again, players were able to enter Pick-3, Pick-4 and Jersey Cash 5 tickets for weekly prizes as well as two Grand Prizes of $25,000. The promotion was met with the same positive feedback from players and retailers and while the final sales analysis is not complete yet at this writing, we did see a bump in sales


during the promotional period. We have run several promotions

in support of Cash4Life, but the most successful was a cross-promotion run primarily to support the recently launched Fast Play product line. The promotion ran from August 24 through September 6, 2015, and offered players a chance to win a free $1 Fast Play with every nth Cash4Life purchase. The promotion rotated through the two $1 Fast Play games available at that time, Fast Cash and Red Hot Numbers, in order to force trial of the new games with players. Prior to the promotion, Cash4Life sales had been declining at a rate of about two percent week over week. During the promotion, we were not only able to stave off that decline, but we grew sales by two percent each week of the promotion. The promotion also increased trial of Fast Play, making it an overall success for draw-based games.

North Carolina Education LotteryBased on our recent experience with

draw game promotions, the greatest impact has been with our numbers games, specifically Pick 3. Overall we have found that promotions drive interest and trial of the game during the promotion period, but sales return back to pre-promotion levels quickly once the

promotion is over. However with Pick 3 promotions, the sales increase that we experienced during the promotion was sustained for a period of time beyond the promotion period.

The North Carolina Education Lottery has offered several different promotions with its draw games, including:

- A Double Draw promotion this year for the Carolina Pick 3 game. The promotion gave players two chances to win through the drawing of a second set of numbers during the evening drawing. Two Pick 3 drawings were held whenever a Red Ball, one of seven, was drawn. One Double Draw was guaranteed each week. The promotion added excitement to the game because Pick 3 players got an additional chance to win on Double Draw nights.

- A Carolina Cash 5 Bonus Bucks promotion in fiscal years 2012, 2013 and 2014. The promotion provided a free ticket in special Bonus Bucks drawings for Cash 5 players who spent $5 on a single ticket. Players could win a $50,000 prize, a $5,000 prize or one of three $1,000 prizes in the Bonus Bucks drawings. The promotion boosted what was at that time flat Cash 5 sales and proved so popular with players that we did three rounds. The promotion provided a second way to win – essentially a raffle – and added

value to the regular Cash 5 purchases.- Buy 2, Get 1 Free promotions.

The lottery has conducted this type of promotion to support new draw game introductions, driving trial and awareness.

Ohio LotteryQuick-turn, social play games such as

Keno benefit the most from promotions.Our Keno Double Win promotion and

Keno March Mania promotion helped us reach sales levels that were above projections. By providing more winning experiences during fixed time frames, players tend to invest more in the game and play the game longer.

After several successful years with our Pick 3 Red Ball promotion, we have discontinued that offer. It did not increase game play or spending, which resulted in flat, even negative, sales results in recent fiscal years. We are in the process of exploring a few different add-on features that will jumpstart our daily draw games.

Ontario Lottery and Gaming Corp.We have demonstrated through the

Lotto 6/49 guaranteed prize draw feature that we can create Super Draws offering additional guaranteed prizes of up to $1 million during high retail traffic periods (Christmas, Valentine’s Day, Black Friday etc.), where we see a significant sales boost and solid ROI. In fiscal 2016, Lotto 6/49 saw an overall 22 percent increase in sales during Super Draws.


The most common regional promotions are trial tactics like couponing and BOGOs (i.e. Buy one Lotto 6/49 with Encore ticket and get one Ontario 49 free play). These trial programs are executed to support new launches and relaunches like Watch ‘N Win games, Ontario 49 and Lottario. The programs are proven influencers that increase motivation to try a game and future purchase intent. For example, of those that received a Wheel of Fortune Lotto free play coupon, 37 percent had not played the game and later went on to buy the game on their own. Similarly, 31 percent said they were more likely to buy a Wheel of Fortune ticket as a result of using the coupon. BOGOs are also effective at reaching a mass audience quickly by coupling regional games with high participation national games. These promotions help generate awareness with existing lotto players, drive incremental sales on the host product (i.e. Lotto 6/49) and have a similar impact on future purchase intent as the free play coupons.

Trial Promotions: Generally speaking, trial promotions are effective at increasing motivation to play, driving meaningful product engagement and influencing future purchase intent. These programs tend to yield redemption rates of 60 to 90 percent and can drive trial with over 500,000 players when incorporated into a fully-integrated advertising campaign. The most successful examples are Wheel of Fortune free play coupons (190,000 coupons redeemed, 76 percent redemption rate) and Ontario 49 BOGO (772,000 coupons redeemed, combined $400,000 incremental sales on host product Lotto 6/49 and Encore).

Limited Time Prize Promotions: Wheel of Fortune has a promotional feature that allows for the top prize ($10,000) to be swapped for a trip ($20,000 value) or a car ($50,000 value). In July 2014, the trip promotion was activated to keep players engaged and offer an exciting promotional prize. It was executed on a modest advertising budget and support included tactical in-store advertising only (POS and Backwalls) to capitalize on impulse purchases. The program increased player participation by one point to 3.4 percent and sales by 38 percent ($1.2 million

incremental) with a lasting effect after the promotion had ended. Over the nine-week promotion, seven trip prizes were awarded.

Oregon LotteryOur in state game sales grew when we ran a seasonal campaign about a year ago. It has been a very long time since we’ve done any promotions other than jackpot awareness for the national games. When we did, there was an increase in sales, but the campaigns were far too costly to justify that level of spend.

We upgraded the outdoor/billboard advertising to add a digital component/jackpot reminder a few years ago and recently refreshed those boards. According to our research, this is the most impactful draw game advertising amongst all of our media offerings.

These games already garner such attention because of the eye-popping jackpot levels. So spending on an ongoing awareness seems to be a bit like helping a boulder roll faster down a hill. That said, we feel good about our strategy, just want to refine it to see greater gains, especially in the “new world” of a $1.58 billion jackpot.

Pennsylvania LotteryThe Pennsylvania Lottery introduced

webcodes for terminal-based game tickets in September 2014 to enable us to offer second-chance drawings for those products. Our first such drawing, the Cash 5 Cash Vault Second-Chance Drawing, featured our popular Cash 5 game and ran from Sept. 2 to Oct. 2, 2014. It was wildly successful, with an overall participation rate of nearly 27 percent and a total of over 196,000 entries. As a bonus, the drawing increased our VIP Players Club enrollment by over 50,000 new players.

To date, the Pennsylvania Lottery has conducted six second-chance drawings involving terminal-based games. In June 2015, we launched our first second-chance drawing featuring all terminal-based games. The Pickup Luck Second-Chance Drawing awarded two truck prizes as well as cash. The overall participation rate was 12.01 percent and over 1.4 million entries were received. In general, participation

To date, the Pennsylvania Lottery has

conducted six second-chance

drawings involving terminal-based

games... Based on this success, we plan to increase the number of

drawings featuring terminal-based

games.

- Pennsylvania Lottery


rates have matched or surpassed those for drawings involving instant games. Based on this success, we plan to increase the number of drawings featuring terminal-based games, with one currently slated for mid-summer and one in the fall.

Loto-QuébecThe national Lotto 6/49 Super

Draw promotions are designed to offer additional guaranteed prizes. The objectives are to build brand excitement through frequent market events and to create a large number of winners in a short period in order to reinforce the winability of Lotto 6/49 and the

guaranteed prize draw message. The strategy is to offer four Super Draws per year and they are dispersed throughout the year leveraging high retail traffic events.

Rhode Island LotteryNo matter the game, there always

seems to be a positive impact when we run a promotion. Some promotions we’ve run in the past include:

Buy X, Get Y – We’ve done a lot of these and they always increase sales during the promotional period.

Coupon – For two weeks in September 2015, players received a coupon for a free $2 Powerball ticket

for every $10 or higher Powerball wager made on a single ticket. The coupon could be redeemed in a two week time frame in October 2015 after the game changed. We saw a sales increase in the two week time frame when the coupons were distributed and also when they were being redeemed, for a total profit of $54,940 (this profit does not take into account any advertising spent promoting the game change in October).

Quick Pick Pack/Bundler – We ran this promotion for two weeks in June 2014. For $5, players received one Powerball, one Mega Millions, one Lucky for Life and one Wild Money quick pick ticket. The Mega Millions ticket was free, so they received a $6 value for $5. The offer was available every day until 9:30pm. For the first few days of the promotion, the Powerball jackpot was $259.8 million, which had a positive effect on sales for Lucky for Life and Wild Money. In fact the non-draw days for Lucky for Life and Wild Money saw a 12 to 36 percent or a 14 to 42 percent increase, respectively. When the Powerball jackpot was hit, Lucky for Life continued to see increased sales on non-draw days, between 8.9 percent and 23.9 percent. Wild Money also saw an increase. As Mega Millions was the free ticket given away for the promotion, it did not experience the same sales increase as the other products. The final comparison we ran was total sales of all games involved during the Quick Pick Pack promotion compared to the total sales of all of the games during similar Powerball jackpot periods. When we compared the sales to the April 20-May 3, 2014, period (when the Powerball jackpot was $148 million), we saw a 10.76 percent increase. That translated to a profit of $193,122 (after the cost of the free Mega Millions tickets is deducted). Then when comparing the sales to the September 11, 2013, Powerball drawing ($248 million jackpot), the total sales were down 5.21 percent.

Every nth – We did a Lucky for Life promotion in June 2015 for two weeks where a players making a $10 wager on one ticket would randomly receive


a voucher for a $100 instant win to be redeemed at the Lottery and also be entered to win an additional $1,000 prize. We gave away 200 $100 prizes and five $1,000 prizes. The amount of $10 wagers increased by 97.5 percent during the two weeks the promotion ran and the five drawings following the promotion dates also had higher sales compared to the previous month.

Raffle – We did a Lucky Raffle promotion for Lucky for Life in 2014 where every $8 or higher Lucky for Life wager received a raffle ticket. Each day we drew a winner for $400. Sales increased by six percent during the promotion, but four out of the 15 prizes went unclaimed, and there was no residual sales increase.

Second Chance Drawings – We don’t typically see much impact on sales for these promotions with our draw games. These more often help increase our VIP Club growth and member activity.

South Dakota LotteryWith Powerball’s loyal player

following and high brand recognition, any draw-based game that’s attached to a Powerball promotion tends to draw attention whether it be a Buy One, Get One or nth promotion.

In a one-month nth promotion involving Dakota Cash, our in-state draw game, players who purchased a $5 or higher Dakota Cash ticket could randomly get a coupon good for $5, $10 or $20 in cash. Sales increased by 11 percent during the term of the promotion.

Big jackpot runs can make promotions involving Powerball purchases tricky. South Dakota participated in a Buy $5 in Powerball, Get a Tri-West Ticket Free! promotion that was scheduled months in advance. When the promotion dates rolled around, we were in the middle of a high jackpot run for Powerball. As a result, Tri-West states gave away a lot of free tickets because people were purchasing more Powerball tickets in anticipation of a big jackpot win. South Dakota alone gave away nearly $200,000 in Tri-West lotto tickets during the promotion, making it more successful than anticipated.

Texas LotteryWe see that the large jackpot games

(Powerball, Mega Millions and Lotto Texas) and daily numbers games (Pick 3, Daily 4) have the largest increase

in sales during promotions. The large jackpot games have a higher brand recall with consumers and at times, a large jackpot amount may occur during the promotional period and positively influence a player’s decision to participate. The daily 3- and 4- digit games are very strong in Texas and we have found that we can encourage trial and base sales growth through free ticket buy X, get Y offers creating opportunities to play and win prizes in these games.

The free ticket player promotions we offer at our promotional selling events held throughout the state always produce great results when the focus is on our jackpot portfolio. For example, players who purchase $10 or more of Powerball on one ticket receive one free Mega Millions Quick Pick and one free Lotto Texas Quick Pick ($2 value). This promotion provides motivation to our jackpot game players and gives them a sample of the three big games in Texas.

In the spring of 2015, we launched a refresh media campaign on our popular Pick 3 daily game. In combination with the media campaign, we offered a player promotion. Players that purchased $5 or more Pick 3 on one ticket received


a free $0.50 Pick 3 Quick Pick with a $0.50 Sum It Up! add-on play included. This promotion increased product trial and brought visibility to the Sum It Up! feature available on our Pick 3 and Daily 4 games.

Starting in April, we implemented an eight-week Fridays-only free ticket player promotion on our newest draw game, Texas Triple Chance. To add a sense of exclusivity to the promotion, we will only offer the promotions on Fridays. The very first Friday, April 8, resulted in an approximate 20 percent sales increase for Texas Triple Chance compared to the previous four-week Friday sales average. Players receive a free $2 Texas Triple Chance Quick Pick with their $6 or more purchase of Texas Triple Chance during the Free Fridays promotion. If the success of this promotion continues, we will look to implement this or similar promotions on other draw games.

We normally run a clerk voucher

promotion following a player promotion to keep our retailers engaged and focused on a new draw game or a draw game for which we are providing a strategic focus. Clerks receive a voucher from the sales terminal after a specific product sales criteria is met. The voucher can be redeemed with the retailer’s Lottery Sales Representative for a promotional item such as a stainless steel mug, cap, t-shirt, etc. Our most recent clerk promotion provided the lowest results to date for a clerk incentive. We are currently evaluating different ideas to motivate retail personnel.

Western Canada Lottery Corp.We run jackpot bonuses on both

national games when warranted and run bonus draws on Lotto 6/49 roughly four times a year. All of which have been very successful. Our Lotto 6/49 bonuses are usually timed to coincide with major

retail traffic periods such as Black Friday, pre-Christmas, etc. Years and years ago, offering cars as bonus prizes was not successful. Players were hoping and playing for million dollar windfalls, and a car didn’t meet their expectations. Even of those interested, they may balk at the type of car offered

Wisconsin LotteryWe focus on our in-state product for

limited-time offers (LTOs). Our three best LTOs in terms of increased sales during the limited time offer were:

• Badger 5 (Lightning Ball, 2015): 44 percent sales increase• Megabucks (Buy $5, get $1, 2002):

41 percent sales increase• 5 Card Cash (nth ticket, 2014): 39 percent sales increase

Wisconsin players like a deal and each of these LTOs offered a better likelihood of winning for the same investment. The Lightning Ball LTO increased sales enough that Badger 5 had one of its largest ever jackpots during the offer period. This elevated it to the top of our list of LTOs for return. Our LTO on the newly launched 5 Card Cash game also performed well. Running an LTO on a new game shortly after launch may reinforce new game habits.


Our 25th Anniversary Package LTO only experienced a 0.6 percent sales increase. This LTO offered a Buy $5 of a Game, and Get $1 of That Same Game – but it did not focus on any particular game. In Wisconsin, we have found that focusing on one game per LTO delivers better returns.

Wyoming LotteryWe had great luck with our in-state

game (Cowboy Draw) promotion. It is our most expensive game and giving them away as a BOGO was unprecedented, though we do have great success launching promotions for all of our games.

Our BOGO was a very successful promotion in terms of getting players interested. However, we were probably victims of our own success as we have a 68 percent payout percentage for Cowboy Draw, so the risk to us was very high.

Nevertheless, our players absolutely loved it. The promo happened April 22, 2015 (Wednesday) and was for one day only. We sent out handbills to our supermarkets and c-stores to hand out to players in the days prior to the promotion, and also sent out an email blast to our players the day before and the day of.

Each time a player purchased a Cowboy Draw ticket, a free QP Cowboy Draw ticket would automatically print. We utilized our LSRs and terminal messaging to inform clerks that this would be happening.

Our total net sales were $335,980 and the draw happened the next day. The jackpot did not hit, but with the high amount of sales we saw more than double the average number of winners for the second tier prize of $1,000.

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Each time a player purchased a Cowboy Draw ticket, a free QP Cowboy Draw ticket would

automatically print.

- Wyoming Lottery

October 4-6, 2016NASPL 2016Hosted by the Georgia Lottery CorporationAtlanta, GA

Save the Dates!

2016 CONFERENCE CALENDAR June 13-17, 2016 NASPL Directors’ MeetingCleveland, OHHosted by the Ohio Lottery

July 15-16, 2016 30th National Conference on Problem Gambling NCPGWest Chester MarriottTarrytown, NY

Aug 1-5, 2016 NASPL Professional Development SeminarOmni William PennPittsburgh, PA Hosted by Pennsylvania Lottery

September 12-14, 2016PGRI Lottery ExpoEden Roc HotelMiami Beach, FL

September 26-29, 2016 G2E Las Vegas, NV

October 4-6, 2016 NASPL 2016 Annual Conference Georgia World Congress Center Omni Hotel Atlanta, GAHosted by Georgia Lottery Corp.

October 18-21, 2016 NACS Georgia World Congress Center Atlanta, GA

November 6-9, 2016 World Lottery Summit Singapore

2017 CONFERENCE CALENDAR

March 2017 Problem Gambling Awareness Month

April 2-7, 2017 NASPL Lottery Leadership Embassy Suites DowntownSt. Louis, MOHosted by Missouri Lottery

June 19-22, 2017 NASPL Spring Directors’ MeetingMetropolitan 9Cleveland, OHHosted by Ohio Lottery Commission

July 24-28, 2017 NASPL Professional Development SeminarRenaissance Hotel Nashville, TNHosted by Tennessee Education Lottery Corp.

September 2017 NASPL 2017 Annual ConferenceLocation to be determined

October 17-20, 2017 NACS McCormick PlaceChicago, IL



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