Massachusetts State Lottery Commission Meeting

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1 Massachusetts State Lottery Commission Meeting Executive Director s Report Delivered by: Michael R. Sweeney April 25, 2017

2 Lottery Sales Update March Overall sales for March of 2017 were down $4.4 million from March Net profit for March 2017 was $70.7 million compared to $61.2 million in March 2016, a $9.5 million increase in net profit from March Our prize payout for March 2017 was percent, as compared to percent in March Our year-to-date prize payout for the first nine months of FY17 is percent, as compared to percent for the first nine months of FY16. Our year-to-date net profit for the first nine months of FY17 is $807.8 million compared to $758.3 million for the first nine months of FY16. After subtracting a 5-day average net profit figure of $14.7 million due to a shift in the calendar that resulted in 5 more days being included in the net profit figure for the first nine months of FY17, the adjusted year-over-year change for the first nine months of FY17 vs. the first nine months of FY16 is a $34.8 million increase in net profit. KENO sales experienced a $2.6 million increase in March of 2017 over March of last year. For March 2017, Mega Millions sales were up $1.1 million, Megabucks Doubler sales were up $176,487, Powerball sales were up $47,685, and Lucky for Life sales were up $7,958 over March of Instant Ticket sales were down $8.4 million in March of 2017 compared to March of Compared to March of 2016, Numbers Game sales were down $580,889 and Mass Cash sales were down $309,278. Sales of the All or Nothing game totaled $938,145 for the month. 2

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16 MSLC Gross Sales Results MARCH FY17 vs. FY16 Unadjusted Non Fiscal Year ($ millions) Through April 1, 2017 FY17 % of Total FY16 % of Total $ Change % Change Instant Tickets 69.9 to 80.4 $ % $ % -$ % Mega Millions 50.0 $ % $ % $ % Powerball 50.0 $ % $ % $ % KENO 70.0 $ % $ % $ % Mass Cash 55.0 $ % $ % -$ % All or Nothing 70.0 $ % $ % $ % Lucky for Life 60.0 $ % $ % $ % Numbers Game 63.0 $ % $ % -$ % Megabucks Doubler 55.0 $ % $ % $ % Jackpot Poker $ % $ % -$ % Total $ % $ % -$ % Instant Tickets 69.9 to 80.4 $ % $ % -$ % Draw Games + KENO 50.0 to 70.0 $ % $ % $ % Total $ % $ % -$ % Unadjusted Month 3/5/17-4/1/17 Month 3/6/16-4/2/16 4 weeks 4 weeks 28 days 28 days 16

17 MSLC Gross Sales Results YEAR-TO-DATE FY17 vs. FY16 Unadjusted Non Fiscal Year ($ millions) Through April 1, 2017 FY17 % of Total FY16 % of Total $ Change % Change Instant Tickets 69.9 to 80.4 $2, % $2, % -$ % Mega Millions 50.0 $ % $ % $ % Powerball 50.0 $ % $ % -$ % KENO 70.0 $ % $ % $ % Mass Cash 55.0 $ % $ % -$ % All or Nothing 70.0 $ % $ % $ % Lucky for Life 60.0 $ % $ % -$ % Numbers Game 63.0 $ % $ % -$ % Megabucks Doubler 55.0 $ % $ % -$ % Jackpot Poker $ % $ % -$ % Total $3, % $3, % -$ % Instant Tickets 69.9 to 80.4 $2, % $2, % -$ % Draw Games + KENO 50.0 to 70.0 $1, % $1, % -$ % Total $3, % $3, % -$ % Unadjusted Year 6/26/16-4/1/17 Year 6/28/15-4/2/16 40 weeks 40 weeks 280 days 280 days 17

18 MSLC Gross Sales by Product Category MARCH, FY17 vs. FY16 FY17 % of Total FY16 % of Total $ Change % Change Instant Tickets 69.9 to 80.4 $ % $ % -$ % Draw Games 50.0 to 70.0 $ % $ % $ % Monitor Games $ % $ % $ % Total $ % $ % -$ % YEAR-TO-DATE, FY17 vs. FY16 FY17 % of Total FY16 % of Total $ Change % Change Instant Tickets 69.9 to 80.4 $2, % $2, % -$ % Draw Games 50.0 to 70.0 $ % $ % -$50.2* -9.4% Monitor Games $ % $ % $ % Total $3, % $3, % -$ % * Powerball -$50.4 million YTD 18

19 Corvette Cash Instant Ticket Sales Update Corvette Cash Price Point: $5 3-Week Sales : $5,207,385 19

20 9s In A Line Price Point: $1 Top Prize: $10,000 April Instant Tickets Release (April 25) Extra Plays Price Point: $5 Top Prize: $1,000,000 (Extra Plays Area on back of ticket) 200X Price Point: $30 Top Prize: $15,000,000 $100,000 PayDay Price Point: $2 Top Prize: $100,000 20

21 April Instant Tickets POS Advertising 17x11 Poster 21

22 April Instant Tickets POS Advertising LED Frame Wobbler 22

23 Mega Millions Promotion: April 30 May 13 From April 30 through May 13, players who spend $4 or more on a single Mega Millions ticket (single drawing or multiple advance draws) will receive a promotional ticket for a chance to win $2,017. On May 15, twenty (20) winning promotional ticket serial numbers will be randomly selected and posted on masslottery.com. 8.5 x 11 Poster 23

24 Mega Millions Enhancements Target launch date is October 28, 2017 Starting jackpot will more than double, from $15 million to $40 million Higher average jackpots with faster rolls Improved odds of winning $1 million $2 for a single wager (first price adjustment since start of game in 2002) New wager type: Just the Jackpot $3 wager Player will receive two entries for a chance to win Just the Jackpot 24

25 Mega Millions Enhancements New matrix designed to produce significantly higher average jackpots and more $1 million prize winners, while remaining simple to play: Current New Match 5 5 out of 75 5 out of 70 Mega Ball 1 out of 15 1 out of 25 The game s odds of winning will change as follows: Current New Winning the Jackpot 1 in 258,890,850 1 in 302,575,350 Winning $1 million 1 in 18,492,204 1 in 12,607,306 Winning any prize 1 in in 24.0 Overall prize payout remains approximately 50% Target launch: October 28,

26 Mega Millions Enhancements Current Mega Millions matrix New Mega Millions matrix Target launch: October 28,

27 Mega Millions Enhancements Just the Jackpot Optional wager type providing players the opportunity to play for Just the Jackpot 2 plays for $3 Each lottery has the option to offer this wager type at inception or at a later date Manual play and Quic Pic play options are both available (each lottery has the option to offer QP only) Target launch: October 28,

28 Boston Bruins Playoff Partnership Agent incentive Tweet from Bruins Facebook promotion 28

29 Social Media Messaging KENO app (Facebook) Mass. Council on Compulsive Gambling information table at Braintree HQ (Instagram) 98.5 The Sports Hub (Twitter) 29

30 Social Media Messaging Worcester office decorated for start of Red Sox season (Instagram) Lottery history (Facebook) Marathon Monday (Twitter) 30

31 Partnership Assessment Examined 6-month year-over-year sales by agent location Identified 62 retail agent locations across all five regions (Braintree, New Bedford, Springfield, Woburn, Worcester) Approximately 12 agent locations per region Operator engagement Site visits at each location Evaluated each location using an agent visit checklist 31

32 Partnership Assessment Agent Visit Checklist Storefront o LED jackpot signage o Lottery branding Product Merchandising o Instant Ticket display o POS Lottery Zone o Bet station o Drawing calendar o Jackpots Ordering Product and Supplies o Review YTD sales and products that sell the best at their location o Review current inventory and inform agent of upcoming ticket releases Review Business Issues o Share best practices from other agents in similar business category o Review billing, cashing, settlement and credit practices 32

33 Partnership Assessment Goals Determine root cause(s) of sales decreases at these identified locations Apply findings from agent visit checklist Gather agent feedback Monitor impact of implemented changes Solidify lessons learned and apply going forward Make program a quarterly activity 33

34 Jackpot Awareness Signage Increased the number of signs in the field by 6 percent this year over last year. 34

35 Thank you for the opportunity to share this presentation. We look forward to your feedback and to further discussion on this information, as well as other Lottery initiatives. 35

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