Tri-State Lotto Commission
May 4, 2007
Meeting Minutes:
TRI-STATE LOTTO COMMISSION
New Hampshire Lottery Commission
Concord, NH
MAY 4, 2007, 10:30 A.M.
Present: Orland McPherson, Maine State Lottery
Richard J. Campbell, New Hampshire Lottery Commission
Thomas Scala, Vermont Lottery
Pam Coutts, Maine State Lottery
Rick Wisler, New Hampshire Lottery Commission
Alan R. Yandow, Vermont Lottery
Rich Sperlazzi, Maine State Lottery
Lisa Rodrigue, Maine State Lottery
Maura McCann, New Hampshire Lottery Commission
Kassie Strong, New Hampshire Lottery Commission
Mary Cassani, Vermont Lottery Commission
Carole Lacasse, Vermont Lottery Commission
Jen Cartmell, NL Partners
John Ripley, NL Partners
Chris Nichols, NL Partners
Rose Longo-White, Griffin, Bodi & Krause
Moe Pepin, Scientific Games
Liz Dimmick, Scientific Games
Doug Parker, Scientific Games
Chair McPherson called the meeting to order at 10:42 a.m.
ACCEPTANCE OF THE APRIL 6, 2007 MINUTES
A motion was made by Commissioner Campbell to accept the April 6, 2007 minutes as distributed. Motion was seconded and voted in the affirmative.
FINANCE COMMITTEE - Mary Cassani
Gross revenues for Tri-State through March 2007 have increased $3,235,674, or 6.72% compared to last year. Of this increase, Megabucks sales are down in all three states $1,048,672, or 4.16%; Daily Numbers sales are down $172,139, or 0.94%; Triple Play sales combined with Paycheck sales are up overall $1,486,055, or 32.07% and the Promotional Add-a-Play games increased sales $2,969,430.
Total expenses through March 2007 are up over last year to date $1,949,933. This represents an increase in cost of sales of $1,725,258, and an increase in operating expenses of $224,675. Net Profit through March 2007 increased from last year to date $1,502,263, or 9.40%. Contingency Funds at the end of March are all in the positive. Expired unclaimed prizes remains over $1.3 million.
Auditors from Berry, Dunn, McNeil and Parker will be at the Vermont office next week. They intend to come back the week of July 30th to finish up the field work in all three states.
The Finance Committee will be putting together the FY08 Budget.
MARKETING COMMITTEE - Maura McCann
The press clip report was distributed.
DEVELOPMENT COMMITTEE - Pam Coutts
There was a discussion on the Pick 3 and Pick 4 Rules. A change is necessary to bring these rules to conformity with other on-line game rules. Rule 11, Claims (D) would now read: "All prizes must be claimed as directed within 365 calendar days of the drawing in which the prize was won. For purposes of determining the claim period, the first (draw) day shall be excluded, and the last day included. In the event the last day falls on a Saturday, a Sunday, or a legal holiday, the time to claim shall be extended to close of business on the next day thereafter when Lottery offices are open for business. Any prize not claimed within the specified period shall be forfeited."
MOTION
A motion was made by Commissioner Campbell to accept the above-cited rule change, Rule 11 Claims (D). Motion was seconded and voted in the affirmative.
With the change to the above rule, the commission reviewed the proposed Administrative Practice for Claim Over365 Days.
MOTION
A motion was made by Commissioner Campbell to accept the proposed Administrative Practice for Claim Over 365 Days with the deletion of the words "high tier" in the first sentence. Motion was seconded and voted in the affirmative.
ADMINISTRATIVE PRACTICE FOR CLAIM OVER 365 DAYS
Pursuant to the rules of the Tri-State Commission, the following practice shall be used for such claims made by players for situations that occur when a player tries to redeem a prize on the last valid day and the lotteries are closed; i.e., weekends, holidays and the prize exceeds a retailer's payout limit. These claims must be made on the first business day that the lotteries are open following the last valid day of the prize that fell on the day the lotteries were closed.
The player presents original ticket with claim form on the next business day the lotteries are open following the last valid day to the lottery for payment on a ticket that has passed the expiration date of the draw.
Manually validate the ticket using the on-line management ticket research function and having two lottery employees view and sign off that the ticket is a winning ticket and has not been previously cashed.
Request that SGI create a sync print and have the operator who creates the report sign off on the report.
Require that a SGI supervisor verify and sign off on this report.
Separately, have two lottery employees review, verify and sign off on the sync report indicating that ticket matches the report.
After all signatures are in place and the ticket has been manually verified, make payment to claimant.
Copies of the ticket, claim form, check and sync prints with the signatures are to be sent to the Tri-State Business Office in order to facilitate credit for the "off-line" payment on that week's invoice.
There was a discussion on a Random Number Generator (RNG). Pam explained the costs involved in renting and/or purchasing the RNG. The committee has no recommendation at this time. Commissioner Scala would like to see potential costs from other companies as well as Smartplay. The committee will come to the June meeting with a recommendation. It was also noted that the commission would like to have something in writing that there are no restrictions as to individual Tri-State Lotto Commission members using the system.
DRAW COMMITTEE - Maura McCann
Maura checked with Smartplay regarding the request last month as to "certification" of the equipment after maintenance has been completed. There is no "certification" on the draw equipment following the maintenance as a machine could break within a week after the maintenance.
She also checked on any other companies that provide draw equipment, services, drawing balls, etc. There are two other companies, one in England and one in Maryland.
Maura reported on another cracked daily numbers ball. She contacted Smartplay and requested that all drawing balls for the daily numbers be replaced. Smartplay will replace all of our drawing balls at their expense.
OPERATIONS COMMITTEE
No report at this time. Sylvia Buzzell will sit on the committee for Vermont in the absence of a Marketing and Sales Director.
SCIENTIFIC GAMES - Doug Parker
SG has completed testing for Playball. Maine and New Hampshire are ready to implement the game and Vermont is still in testing.
ACCEPTANCE OF THE COMMITTEE REPORTS
MOTION
A motion was made by Commissioner Scala to accept the committee reports as presented. Motion was seconded and voted in the affirmative.
OTHER BUSINESS
There was a discussion on Tri-State Policy No. 15 pertaining to the use of "expired unclaimed prize money". The Maine State Lottery requested the use of funds. Discussion followed. A decision was made to allow a one-time exception to Tri-State Policy No. 15 and the committee will review and possibly rewrite the policy.
It's been some time since the rules have been reviewed. They will be included in next month's mailing for review and possible changes.
MOTION
A motion was made by Commissioner Scala to allow a one-time exception to Tri-State Policy No. 15, and allow the Maine State Lottery the opportunity to operate a non-concurrent promotion in June/July 2007 utilizing expired unclaimed prize funds currently allocated to the Maine Lottery. This exception shall not be considered a precedent and will be allowed only while Policy 15 is under review by the Tri-State Lotto Commission. This exception is allowed under paragraph 674 Procedures and conditions governing the Tri-State Lottery, E. 6. "The commission also shall have additional powers, incidental to the express powers granted to it by this compact, as may be necessary or proper for the effective performance of its functions." Motion was seconded and voted in the affirmative.
The next meeting is scheduled for June 1, 2006 at 9:00 a.m. at the Lake Morey Resort in Fairlee, Vermont.
A motion to adjourn was made at 12:05 pm.