New Hampshire Lottery Commission
April 11, 2007
Meeting Minutes:
NEW HAMPSHIRE LOTTERY® COMMISSION
14 INTEGRA DRIVE, CONCORD, NEW HAMPSHIRE 03301
MINUTES OF COMMISSION MEETING
WEDNESDAY, APRIL 11, 2007
PRESENT:
Richard J. Campbell, Jr., Commissioner
Paul J. Holloway, Commissioner
Arthur P. Klemm, Jr., Commissioner
Rick Wisler, Executive Director
Robert Preston, Games Manager
Diane Campbell, Administrative Assistant I
Leonard Mannino, Security Director
Maura McCann, Programs Information Officer
Georges Roy, Administrator III
Patrick Griffin, Griffin Bodi & Krause, Inc.
Travis York, Griffin Bodi & Krause, Inc.
Rose Longo-White, Griffin Bodi & Krause, Inc.
Cindy Whitehouse, Griffin, Bodi & Krause, Inc.
Moe Pepin, SGI
Liz Dimmick, SGI
John Hutchins, Lottery Representative II
Lisa Nadeau, Lottery Representative II
Gail Pierson Cromwell
Barry Bodell, Administrative Services
Commissioner Campbell convened the commission meeting at 9:30 a.m.
1. ACCEPTANCE AND SIGNING OF PREVIOUS MINUTES:
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to approve the minutes of the March, 2007 Commission meeting. So voted, unanimous.
2. COMMISSION APPROVAL OF RACETRACK FUNDING REQUESTS:
Director Wisler stated the Lottery rules require the Commission to vote in April each year on the racetrack funding requests as set forth in the budget law. Included with the requests were their plans for advertising the lottery. Director Wisler stated a lottery sales summary for each of the tracks was provided to the Commission for their review. Director Wisler stated all the tracks appeared to have increased their sales, with the exception of the Lodge at Belmont, since it was inoperable for a number of months. Rockingham Park increased their sales by approximately 50%, most likely due to the addition of an instant ticket vending machine.
Commissioner Holloway inquired about the Commission's rules relative to the lottery's funding in support of racing at the tracks. Commissioner Campbell read the applicable rule for Commission action, Sw 402.03 & Sw 402.04. Commissioner Campbell reported the budget law states the Lottery Commission shall in each year of the biennium make the following disbursements from Class 93 Advertising, Rockingham Park $117,500; Seabrook Greyhound Park $117,500; Hinsdale Greyhound Park $60,000; Lakes Region (now the Lodge at Belmont) $15,000; and Rochester Fair $15,000.
After reviewing the sales summary for the past six years, Commissioner Holloway stated that Hinsdale Greyhound Park, Seabrook Greyhound Park and Rockingham Park lottery ticket sales justified the allocated funding, but indicated that Lakes Region(Lodge at Belmont)and Rochester Fair lottery ticket sales cost the Lottery more in funding than they generated in lottery sales. Commissioner Holloway expressed his dissatisfaction with lottery ticket sales at the Rochester Fair and Lakes Region, but emphasized the approval of the funding for any of the tracks was not up to the Commission's discretion, since the law requires the specified amounts to be distributed to each of them, regardless of their sales.
Commissioner Klemm made a motion, seconded by Commissioner Holloway, to approve the lottery funding amounts of the tracks as specified in the budget law and as shown above. So voted, unanimous.
3. COMMISSION APPROVAL OF FINAL PROPOSAL FOR SW 500, RULES FOR PRIZE ASSIGNMENTS:
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to approve the text of the final proposal for Sw 500, Rules for Prize Assignments. So voted, unanimous.
4. TRI-STATE REPORT:
Maura McCann, stated testing for a raffle game is underway. Ms. McCann stated the first stand alone Add-A-Play game called "Play Ball" would launch later this month, followed by the second game called "Lucky Numbers". Discussions have begun to plan for a replacement game for Paycheck, including timeframes and testing.
Robert Preston, Games Manager, updated the Commission on the upcoming on-line raffle game. Mr. Preston stated there had been a slight delay in the testing, due to a software change to add the special occasion spot to the game.
A brief discussion was held on the use of the expired, unclaimed prizes for Tri-State games and New Hampshire Lottery games. The Tri-State games' expired, unclaimed prize funds are returned to the players through promotions and the New Hampshire Lottery games' expired, unclaimed prize funds are returned to the state as net profit to Education.
Methods to increase Add-A-Play sales were discussed. Ms. McCann stated at the end of the month, Add-A-Play will be a stand alone game and no longer require a Tri-State game purchase. It will be termed as "Fast Play" and will be supported by radio advertisement and point of sale materials. This change was developed after receiving suggestions from retailers.
A brief discussion was held on sales comparisons among Maine, New Hampshire and Vermont. Commissioner Holloway made positive mention of the efficiency of New Hampshire Lottery's operations as reflected in the sales figures of the Tri-State report.
5. ADVERTISING:
Rose Longo-White of Griffin, Bodi & Krause, Inc. stated a Power Play promotion was running this month and was being supported by radio and point of sale materials. Ms. Longo-White has met with Lisa Nadeau, Lottery Representative II and the Liquor Commission about new liquor store signage.
Travis York of Griffin, Bodi & Krause, Inc. reported the total number of Replay members was approximately 88,000, with Sunday being a very active participation day and on-line and instant tickets entered about equal.
Commissioner Holloway asked for an update on the Replay prize solicitation through the marketing partners. Ms. Longo-White responded that business with the marketing partners was going well and that a variety of new and exciting prizes were being offered.
Patrick Griffin of Griffin, Bodi & Krause, Inc. stated the Replay database was the largest database of lottery players in the country. Ms. Longo-White stated that approximately 68,000 replay members were opting to receive lottery emails. Ms. McCann stated plans were in the works for the prize fulfillment and inventory process to be handled by the New Hampshire Lottery as of July 1st.
Ms. McCann stated she had received a recent call from WBZ about an Attorney General press release regarding a lottery scam. Ms. McCann stated the lottery scam had been reported by the New Hampshire Lottery. The NH Lottery's Security Director, Leonard Mannino, received a call from a past New Hampshire Lottery winner stating someone had contacted them and indicated not only had they won that prize, but that their name was being entered in a drawing to win money. The New Hampshire Lottery then reported this to the Attorney General's Office. Ms. McCann informed WBZ and Channel 9 that the New Hampshire Lottery does alert lottery players to the possibility of illegal foreign lotteries and scams. Ms. McCann stated a scam alert had been emailed to lottery players through its weekly newsletter. The Commission stressed the importance of emailing a scam alert including the Attorney General's press release to the Replay members.
Commissioner Klemm initiated a discussion on the proposed release of a $30.00 instant ticket. Director Wisler stated he forwarded a draft prize structure analysis to the Commission for their review. Commissioner Klemm suggested surveying the Replay members and retailers for their thoughts relative to a prize structure for the $30 ticket. The advertising agency indicated that program changes will be made to allow for surveying Replay members for this purpose and other occasions.
6. OTHER BUSINESS:
Commissioner Klemm reiterated the importance of gaining lottery-related input from its retailers and would like to also receive feedback from the lottery representatives at the next Commission meeting. Director Wisler stated a retailer advisory group within each sales rep territory was being developed. Director Wisler introduced Lisa Nadeau as Lottery Representative II and the new Lottery Key Accounts Manager, John Hutchins. Director Wisler responded that the sales representatives could be invited to attend any of the lottery's commission meetings and participate in an open discussion, possibly the June meeting. Director Wisler stated on the Governor and Council breakfast will be hosted by the Lottery on May 16th and the New Hampshire Millionaire drawing will also be held that day at 10:00 a.m.
Commissioner Klemm made a suggestion to place corresponding numbers on the outside and inside of the new instant ticket display units for a more effective way for players to communicate to the retailers which instant ticket(s) they would like to purchase. Commissioner Klemm stated the new upright ticket display had increased the instant ticket sales at his location by $300 per day. Commissioner Klemm requested for the next meeting an instant ticket sales comparison of the retailers who have received the new units before and after installation.
Lisa Nadeau, Lottery Representative II, stated the lottery sales representatives have been working closely with the retailers in an effort to meet an increased sales goal of 12%. Sales at each location are being analyzed to determine the favored price point for their customer base and reslotting the instant ticket vending machines and dispensers to reflect players' preferences.
Georges Roy, Administrator III, provided the Commission with a budget and legislative bills update.
Commissioner Klemm made a motion, seconded by Commissioner Holloway, to go into Executive Session at 10:35 a.m. to discuss the advertising contract. So voted, unanimous.
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to reconvene the meeting to a public session at 11:30 a.m. and stated no commission votes were taken during the Executive Session. So voted, unanimous.
Commissioner Holloway made a motion, seconded by Commissioner Klemm, to award the advertising contract with the New Hampshire Lottery to Griffin, Bodi & Krause, Inc. So voted, unanimous.
7. NEXT MEETING:
Commissioner Klemm made a motion, seconded by Commissioner Holloway, to adjourn the meeting at 11:40 a.m. So voted, unanimous.