MARYLAND LOTTERY Montgomery Park Business Center 1800 Washington Boulevard, Suite 330 Baltimore, Maryland 21230 Phone: 410-230-8800 TTY users call Maryland Relay www.mdlottery.com Martin O Malley, Governor Stephen Martino, Director TO: FROM: DIVISIONS: Maryland Lottery Commission Stephen Martino, Director John Martin, Assistant Lottery Director Sales, Creative Product Services and Communications DATE: August 16, 2012 SUBJECT: Report for the August, 2012 Commission Meeting Following is a status update of ongoing and special projects in Sales, Product Development, Creative Services and Communications. I. Product Development a. Online products and promotions 1. Medal Madness: This Olympic themed all-games promotion began on 7/9, and ran through 8/12. The Lottery gave away an average of $700,000 a week in free plays, and over 100,000 entries into the grand prize drawing were received. The drawing will be held 9/5. 1. Two monitor game promotions are scheduled to run 8/20 9/9, to coincide with the Maryland State Fair: the Keno Sprinkler and Racetrax Doubler promotions. 2. The Redskins Mega Power Promotion is scheduled to begin 9/6. During the promotional period, any Mega Millions with Megaplier or Powerball with Power Play game ticket sold in Montgomery and Prince George s counties (Redskins NFL territory) will be printed with a Redskins NFL logo on the top of the ticket. The serial numbers from those eligible non-winning tickets may be entered into a Redskins/Lottery branded microsite for a chance to win weekly prize drawings through the end of the regular football season. Weekly prizes include Redskin four pack game day tickets, 4 replica jerseys and $500 cash (14 winners total), and two pairs of 2013 Redskins season tickets with parking (4 winners total). 3. Continuing to work closely with Scientific Games to prepare for the November launch of the new game, 5 Card Cash. 5 Card Cash is a terminal game that offers players a chance to win instantly, and through a nightly drawing. For a $2 wager, players receive a 1
terminal ticket printed with five playing cards. A player can win instantly if their hand contains a pair of Jacks, or better. A nightly drawing will take place, where players try to match their hand with the cards drawn. Additional details will be provided in future reports. b. Instant ticket products and promotions 1. For the fourth consecutive year, Ravens Cash Fantasy, a scratch-off ticket branded with the Baltimore Ravens marks and logos was released to retailers. The ticket was made available to the public on 8/6, however, the game was set-up in the game management system a few days early to premier sales of the ticket at the Baltimore Ravens first practice of the year on 8/4. This year s scratch-off has two different color pulses, and it is the intent to have both colors available, and used in multiple facings in retail locations. 2. August instant tickets launched 8/6 and included: $2 Triple Win, $3 World Championship Poker, $5 Ravens Cash Fantasy and $10 Diamonds. 3. The $2 Top Prize Doubler Promotion ran 6/4 7/31. During the promotional period, any top prize claimed from an active $2 instant ticket would be doubled. 16 top prizes were claimed, awarding a total of $186,608.00 in bonus prizes during the promotion. 4. The $20 Lucky 7s Game Book is slated to launch 9/4. In an effort to educate retailers and players about the new game type, sample tickets and zipcords and specialized dispensers are being distributed to all retailers that will carry the game. 5. High profile instant ticket performance updates: o Ravens Cash Fantasy: After a little over 1 week of sales, ticket settlements reached $118,800, and activations reached $1,219,500. o Monopoly: After 14 weeks this game is ranked as #1 of all current instant tickets, is 69.7% settled with $540,135 as the previous week settlements figures. Final second-chance drawing deadline is 8/29. o Strike It Rich: After 19 weeks this game is ranked as #8 of all current instant tickets, is 58.3% settled with $317,370 as the previous week settlements figures. The final drawing of the Baltimore Oriole themed second-chance contest deadline is 9/4. 1. Continue promoting Monopoly, Strike it Rich and their respective second-chance contests, while pushing through remaining inventory. 2. Promote the Ravens Cash Fantasy scratch-off and second-chance contest, focusing on changes made to contest format, and maintaining sales levels comparable to previous year s games. 2
3. Launch September instant ticket games: $1 Rake It In, $2 Sapphire Blue 7s, $5 Aces High and $20 Lucky 7s Game Book. 4. Continue to plan for the launch of Holiday games and develop the related second-chance contest. II. Creative Services a. Traditional media 1. The advertising support for Ravens Cash Fantasy has been finalized. In addition to elements within the sponsorship package, the following support is planned: a four week flight of TV to kick-off regular season will run 9/3-30; one :30 second TV spot in each Ravens game; 16 total :30 second TV spots airing in select NFL games throughout the season; a CBS Radio radio/web sponsorship; a Baltimore Sun web sponsorship; a PressBox print/web sponsorship; and a network digital media buy. o The pre-season TV spot, pre-season radio spots and the Smartvision feature that will run in-stadium during home games have been finalized. 2. The Powerball jackpot has rolled through the month of July, and is continuing to climb. Radio and digital out of home advertising is currently supporting the jackpot, now in excess of $300 million, and is scheduled to continue through the end of August, or until the jackpot is hit. 3. To support Medal Madness, The Lottery had an Olympic package with WBAL-TV and WRC-TV, the NBC affiliates in the Baltimore and Washington, D.C. markets. The Brooks Velour spot used to kick-off the promotion (with a television campaign that ran 7/9-22), also ran during the Olympic Games. The sponsorship packages included spots in Opening/Closing Ceremonies, prime time and weekend Olympic programming, as well as other programming surrounding the Games. 4. The 2013 advertising sponsorship with the Washington Redskins has been finalized and includes: pre/in/post game radio, Redskins Game Plan Radio, television spots in several Redskins programs, e-mail inclusions, a half-page ad in each Redskins Game Day Magazine, pre/in/post game spots airing on Redskins In-Stadium TV Network, web banners on www.redskins.com, Facebook and Twitter posts, blog post on the team s website, tower banner on the exterior of FedEx Field, five dioramas inside the stadium, in-bowl ribbon board signage, and an HD Video Board feature that runs in-game. The television spot and the diorama creative were both updated from last year and are complete. 5. Media plans for the upcoming launch of Game Book have been finalized, and include four weeks of statewide television and web ads covering the month of October. The television commercial was shot the week of 8/6, and is currently being finished. 3
1. Ravens Cash Fantasy: Continue updating and finalizing creative materials for the season. The regular season TV and radio campaign are scheduled to be shot and recorded the week of 8/20. The campaign will include four TV spots and approximately eight radio spots, each will feature one or more of the second-chance prizes Fan of the Game, VIP Access, Seats for Life, $1,000,000, etc. 2. Game Book: Develop creative for digital advertising elements, execute advertising plan. 3. 5 Card Cash: finalize media plan; select and produce creative for advertising support. 4. Redskins Mega Power Promotion: Continue to finalize the media support and develop in-stadium, web, and print materials for the upcoming season. A 4-week flight of Radio in the Washington, D.C. market is planned to begin on 9/10. b. Web/digital/new media 1. The Summer of Like promotion will continue through 9/3 and to date has been quite successful. Facebook likes were just over 24,000 prior to the promotion, and have risen to 31,800. 2. The Ravens Cash Fantasy microsite, used as the entry mechanism for the second-chance contest, was updated and launched prior to the instant ticket s launch. After one week, there are already 6,898 registered users. 1. Game book: A landing webpage as well as an animated demonstration of the book being flipped are being developed to launch with the game. 2. Redskins Mega Power Promotion: Finalize the promotion microsite (www.mdlottery.com/redskins) and launch prior to 9/6. 3. Explore new ways/technologies to incorporate digital platforms into product and promotion communications plans. c. Merchandising 1. Sales Maker seminars ran through July 2012 and have concluded for the calendar year. o 175 retailers so far are requesting store makeovers to better merchandise instant tickets. o Retailers that attended the March, April, May and June seminars have begun the makeover process. 2. Digital Jackpot Signage: Nearly 545 signs have been installed. Adding locations to the installation schedule on a case by case basis. o The remaining inventory has been approved for distribution. 4
1. Anticipated completion of the SalesMaker program for CY12 is October. 2. Digital Jackpot Signage: o MSLA will maintain 25 units for future installation needs. o Pre-sites are being collected for 2 nd round of installs. III. Sales Initiatives a. Key accomplishments last period: i. Game Book: Field representatives began planning for the pre-launch campaign designed to introduce retailers to the game, special selling dispensers and introductory point of sale. ii. Facings Report: The goal for FY13 has been set at 105,000 scratch-off ticket facings. This represents a 1.8% increase over the FY12 goal. iii. Corporate Sales: 1. Casino Upgrades: o MD Live!: Followed up on installation of Phase 2 equipment and cabling; site not ready. o Rocky Gap: Sent VP/General Counsel for Lakes Entertainment, an application package for the hotel gift shop. 2. Game Book: o Corporate account managers have begun Game Book dispenser installation in 209 corporate locations. 314 will utilize existing in-counter dispensers. 3. 7-11 Upgrade: o Met with Dallas contacts on 7/25; discussed Game Book, incounter upgrade project, menu boards and conducted store visits. o Upgraded three 7-11 locations with the 32-game in-counter unit; an increase of 8 facings per store. Will resume upgrades for the remaining 347 locations in September. 4. ITVM Audit: o 73 letters were sent to low-performing retailers as a result of the audit (8.6% of ITVM network). 5. PAT Status: o 268 units installed, 12 pending; $956 average weekly sales. 6. Business Review: o Shoppers Food: 6 new applications; 3 in process, 3 pending. b. Upcoming tasks for this period: i. Corporate Accounts: 1. Ravens: o Preparing stadium ITVMs, kiosks, Ravens Walk, staffing, promotional items, etc. o Jiffy Mart will be attending the Ravens game on 8/23. 2. Game Book: o Set up dispensers and distribute list of participating corporate accounts to field staff at August sales meeting. o Complete corporate installations by 8/31. 5
o Procurement for ITVM and PAT point of sale is in process. 3. Personnel: o Submitted procedures for corporate administrative duties. IV. Communications a. Events 1. Staffed a booth at a Delmarva Shorebirds minor league baseball games on 7/27 and 8/2. 2. Staffed large booth at the Baltimore Ravens public practice on 8/4. Worked with the sales team and Scientific Games to sell Ravens Cash Fantasy scratch-off tickets to attendees before the official game launch. 3. Staffed a booth at 94.7 FM s Summer Movie Night events at National Harbor on 8/5 and 8/12. 4. Staffed a booth, sold tickets and hosted a stage event at the first annual Festival Latino de Maryland, a Latino festival in Timonium on 8/12. 5. Staffed a booth and sold tickets at a Baltimore Orioles game on 8/14. 6. Represented the Lottery at the annual Maryland Association of Counties' (MACo) summer conference in Ocean City 8/15-8/18. The Lottery booth highlighted the Lottery's FY12 numbers. 7. Staffed a booth, promoted and sold Ravens Cash Fantasy tickets at the Baltimore Ravens' first pre-season game on 8/17. 8. Held a Keno party to promote the Keno Sprinkler promotion at Loafers Lounge on 8/20. 9. Held a Racetrax party to promote Racetrax Doubler promotion at Jumpers' Grille on 8/23. 1. Maryland State Fair at the Maryland State Fairgrounds in Timonium from 8/24-9/3. Live drawing will be held on 8/24. 2. Racetrax party at Half Pint Sports Bar in Bel Air on 8/30. 3. Maryland Lottery Day at the Maryland State Fair on 9/1. 4. Keno party at Fingers and Claws in Gaithersburg on 9/5. 5. Keno party at Wing Sport Cafe in Baltimore on 9/7. 6. "In the Street" event in Frederick on 9/8. 7. Prostate Cancer race in Towson on 9/9. 8. Ravens vs. Cincinnati at M&T Bank Stadium on 9/10. b. Slots program 1. Released July 2012 casino revenue numbers to the media on 8/6. 2. Answered media calls about casino revenue particularly Maryland Live - and scheduled numerous interviews with Director Martino. 3. Continued to answer media inquiries about the status of Maryland s slots program and the individual casinos. 6
1. Release August's casino revenue numbers on 9/5. 2. Continue to promote and secure media coverage for the Lottery s VEP and the Maryland Alliance for Responsible Gambling (MARG). 3. Continue to address media inquiries regarding Special Session. c. Media relations 1. Wrote a press release about the launch of 2012 s Ravens Cash Fantasy scratch-off. 2. Promoted the popular Strike it Rich and Monopoly scratch-offs and second-chance contests. Chose and notified winners for both Internet promotions. 3. Promoted the $2 Instant Top Prize Doubler and Medal Madness promotions at events. 4. Answered over 250 e-mails from Lottery players sent to Communications public affairs e-mail. 5. Created and posted nine videos (eight winners and one Powerball video) on mdlottery.com s MDLottery TV. 6. Wrote, taped, edited and posted bi-weekly video Lottery Minutes on mdlottery.com. 7. Wrote and taped weekly Lottery Minute for radio. 8. Wrote, taped and posted monthly on-hold message. 9. Held van hits in key Baltimore locations to promote Medal Madness. 10. Wrote, designed and distributed the summer Retailer Report newsletter. 11. Wrote, designed and distributed the Lottery s internal newsletter, Lottery Gazette. 12. Wrote and disseminated monthly Promotional Partners e-blast to media across the state. 13. Wrote, produced and recorded the August 2012 Ocean City resort guide commercial, highlighting Ravens Cash Fantasy. 14. Communications Director Carole Everett appeared in the Lottery s monthly Hot Five segment on WBAL-TV on 7/21. 15. 38 Lottery-related articles and 137 slots articles were printed in local and regional papers and on Internet news websites. 16. Wrote 32 press releases about winners, jackpots and new products that were posted on Lottery website and/or sent to the media. 17. Lottery spokesperson participated in 22 interviews/appearances. 18. Received and responded to several Public Information Act requests. 19. Responded to reporter inquiries regarding revenue, slots, gaming and winners. 20. Coordinated Employee Recognition Program. Assembled team and met to generate ideas and move forward with initiatives. 21. Discussed logistics and viability of holding Five Card Cash drawings. 22. Wrote procedures for Ravens Cash Fantasy drawings, conducted first drawing on 8/14, contacted winners and handled prize fulfillment, answered numerous inquiries from callers regarding entries. 7
1. Drafting initial descriptions for Museum of Industry exhibit. 2. Developing, directing and filming final Ocean City Resort Guide commercial, which will promote Game Book and Fiscal Year numbers. 8