New Hampshire Lottery Commission
July 19, 2007
Meeting Minutes:
REVISED 9/17/07
NEW HAMPSHIRE LOTTERY®COMMISSION
14 INTEGRA DRIVE, CONCORD, NEW HAMPSHIRE 03301
MINUTES OF THE COMMISSION MEETING
THURSDAY, JULY 19, 2007
PRESENT:
Richard J. Campbell, Jr. Chairperson
Paul J. Holloway, Commissioner
Arthur P. Klemm, Jr. Commissioner
Rick Wisler, Executive Director
Dianna Audet, Secretary II
Robert Preston, Games Manager
Kassie Strong, Chief Accountant
Maura McCann, Programs Information Officer
Patrick Griffin, Griffin, York & Krause, Inc.
Travis York, Griffin, York & Krause, Inc.
Rose Longo-White, Griffin, York & Krause, Inc.
Moe Pepin, SGI
Liz Dimmick, SGI
Barry Bodell, Administrative Services
Curtis Barry, The Dupont Group
Commissioner Campbell called the meeting to order at 2:05 P.M.
1. ACCEPTANCE AND SIGNING OF THE PREVIOUS MINUTES
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to approve the minutes of the June 7, 2007 Commission meeting. So voted, unanimous.
2. NATIONAL GUARD REQUEST TO SHOWCASE LOGO:
Director Wisler referred the Commission to the New Hampshire Lottery Policy for Marketing Support of Non-Lottery Entities for clarification regarding the National Guard request to promote with the New Hampshire Lottery. He indicated it would be more of a benefit to the National Guard, but it would be good public relations for the Lottery. The Attorney General's office reviewed the definition of a "state agency" and the National Guard reviewed and approved the draft New Hampshire Lottery Policy for Marketing Support of Non-Lottery Entities.
Commissioner Holloway asked what the cost would be and Director Wisler indicated no cost to the Lottery. Commissioner Holloway also wanted clarification as to how the program would be presented on the ticket. Travis York indicated that press releases and advertising would precede it and the indication of "Supporting the Troops" would be the stance used.
Director Wisler said the National Guard Logo would be used on the on-line tickets and the program would run for a short period of time, perhaps for 2 weeks, and done sporadically so not to lose the message. He also indicated that the program would be reviewed by the Governor's office.
Commissioner Campbell asked for a motion to approve the policy for marketing support for the National Guard, motion made by Commissioner Holloway and seconded by Commissioner Klemm. So voted, unanimous.
3. TRI-STATE COMMISSION REPORT:
Commissioner Campbell presented a report from the most recent Tri-State Commission meeting held on July 13, 2007 at the New Hampshire Lottery in Concord. The Tri-State Commission approved the budget for fiscal year 2008 for all three states. Approval was given for the random number generator through the Multi-State Lottery for the Raffle tickets. Million Dollar Raffle rules were reviewed and final approval is expected at the next meeting. Committee assignments were recommended and Commissioner Campbell referred to Maura McCann, the Chair of the Development Committee, for a report of activity. Policy revisions were covered and the Million Dollar New Year Raffle was discussed. The Vermont Lottery requested that the name be changed to New Year Millionaire Raffle. The Commission is waiting to hear from Maine on that change.
The next Fast Play game, Lucky Numbers, is set to launch on August 13, 2007. The Tri-State Commission is looking at putting several games on-line for the Fast Play and they will be available for change to a new game when wanted. Typically, the games change every 3 months.
Paycheck is the next game to look at for change. It is doing well and the Commission is interested in finding out from the players why Paycheck is so appealing to them. The Commission is looking into possible enhancements for the Paycheck game that will increase the revenue.
The Commission voted approval for $1.4 million in unclaimed prize money for the coming year. The money is used for prizes for the Fast Play game and other promotions. A raffle for July 4, 2008 is under consideration.
4. ADVERTISING
Jackpot Alert, New Hampshire Lottery Star and the website, are three initiatives the New Hampshire Lottery Commission has under consideration at this time.
Patrick Griffin of Griffin, York & Krause, Inc., spoke regarding the possibilities to improve the New Hampshire Lottery website. The present website is approximately 6 to 7 years old. He noted the Commission could consider whether to make some changes to the existing website, including looking at changes to the link to the Replay program and back to the New Hampshire Lottery web-site or build the website from the beginning. There were 3 options to rebuild the website with the options ranging from $175,000 to $350,000.
According to Patrick Griffin, the website will become the most important media venue or source of information available in the future. Mr. Griffin indicated that traditional television media will not be as available or affordable as in the past, mainly through the primary and election year, since it will be difficult clearing spots and rising advertising costs. Mr. Griffin suggested that the Lottery may want to shift resources to the new Lottery web site development in lieu of television media in particular during the next 36 months. This will give us the advantage as it appears that internet websites are becoming important sources for news and advertising.
Maura McCann and Rose Longo-White have been looking at the Replay program for individual promotions through summer and early fall,
using the sports teams and NASCAR to keep the products in the public eye. McDonald's has signed again and bringing in the prizes because they have been having good promotional return.
Jackpot Alert is a program that is being looked at in various stages, such as the player using text messaging, the ability to see timely jackpots and other information the individual players would use. Jackpot Alert and NH Lottery Star will help expand the Replay Program. In order to use the programs, the player will need to sign up for Replay. Director Wisler inquired whether some changes can be made to the current website to accommodate Jackpot Alert and NH Lottery Star. Patrick Griffin feels that it can be done on a temporary basis by connecting with the Replay website. Griffin, York & Krause, Inc. indicated the cost for the entire FY 08 marketing campaign including a rebuilt website, Jackpot Alert and NH Lottery Star, media, production and other supporting initiatives would be approximately $3.4 million. Travis York recommended considering spreading the three initiatives out over 2 fiscal years to better work with the budget.
A conference call will be held at 9AM on July 26, 2007 to discuss the advertising budget.
5. FINANCIAL REPORT
Commissioner Holloway asked for verification of the projected budget for fiscal year 2008 at $85.8 million. The NH Lottery needs to generate approximately $7.1 million in net revenues, monthly, to reach the projected amount. The higher priority initiatives like the higher priced scratch tickets will be helpful for that goal.
Commissioner Holloway looked at the figures for the $3 ticket and noticed some variation in the income. Director Wisler noted there are new styles introduced in the $3 tickets to extend the play time on each ticket. The $5 and $10 tickets are doing the best at this time.
Kassie Strong said the Auditors arrived at the Lottery. They are scheduled to stay for approximately 45 days.
Commissioner Campbell presented a Certificate of Achievement in Excellence for Financial Reporting for the report ending June 30, 2006 to Kassie Strong and Georges Roy. Congratulations were given to Kassie and Georges by the Commission.
Director Wisler noted that the $30 ticket is included in the state budget bill and should be signed by Governor Lynch. Commissioner Klemm suggested a structured prize schedule for the $30 ticket and Director Wisler said the lowest prize to be paid on this ticket is $40. The odds are below 1:3 for the game. The top prizes are two $1 million annuitized or $650,000 cash, minus the Federal tax. The sales campaign would be using the fact that the lowest prize on the game is $40.
6. OTHER BUSINESS
A review of the Retailer Commission Plan showed a flat rate rather than an incremental commission offers the best process to understand and implement, and is preferred by the lottery staff. Commissioner Holloway asked what the average commission is for a larger retailer, annually. Director Wisler estimated, at this time, approximately $40,000. If they meet or exceed their goal, they get a bonus of ½ of 1%.
Director Wisler gave the Commission the FY 08 plan that the Sales Staff uses, both regular accounts and the Key Accounts. It was determined that using a staff incentive program would be most beneficial. Brenda Tilton, who had the top sales, will be attending the World NASPL Seminar in Louisville, Kentucky in October 2007. Also, the staff with the best sales performance will be given premium clothes embossed with the NH Lottery Logo.
Commissioner Holloway inquired about the idea of monetary reward. The idea has been considered but isn't available at this time. Director Wisler will contact the SEA to discuss the possibility.
Director Wisler said the tag line we have been using "Imagine the Possibilities" was looked at by Griffin, York & Krause, Inc. and it was suggested that it be changed to "Get in the Game". It is felt that the players will respond to the new tag line. It is agreed and Director Wisler said the Lottery will start changing it over.
7. NEXT MEETING
Commissioner Campbell asked if a date was set for the August meeting. A tentative date has been set for August 28, 2007, if in agreement with the representatives of Liquor Commission who will be attending.
Commissioner Klemm made a motion, seconded by Commissioner Holloway, to adjourn the meeting at 3:50PM. So voted, unanimous.