Idaho Lottery Commission

Meeting Minutes

 

 

Time, Date and Place:

 

The 137th meeting of the Idaho Lottery Commission convened on Tuesday,

September 18, 2007, 10:00 a.m. (MDT) at the Idaho Lottery Commission, Boise, Idaho, 83702.

 

Attendance:

 

Commissioners Present:                       Chairman, Roger Jones;

                                                          Commissioner, Mel Fisher;

Commissioner, Scott McLeod;

Commissioner Lydia Justice-Edwards

Commissioner David Keyes *

(* present via telephone.)

                                                          Former Commissioner, Teresa Deshon

                                                          Former Commissioner, Jim Simpson                                                     

Lottery Staff Present:                            Director, Jeff Anderson;

Deputy Director, Becky Schroeder;

Deputy Director, Mike Helppie

Deputy Director, Amber French

Accounting Manager, Jay Prickett

Administrative Assistant,

Martha Torres;

Public Relations Officer, David Workman

                                                          Advertising Manager,

                                                          Sherie Moody St.-Clair

                                                          Product Manager, Joe King

 

Others Present:                                    Intralot, Scott Hoss

                                                          Intralot, Christos Tzoumaras

                                                          Intralot, Zeke Chemodurow

                                                          ES/Drake, Sara Chase;

                                                          Scientific Games, Geneva McCaffrey

                                                          Scientific Games, Andrew Gausling

                                                                                                                   

1. MEETING CALLED TO ORDER:

 

Meeting called to order by Chairman Jones at 10:05 a.m. 

2. APPROVAL OF MINUTES FROM JUNE 29, 2007 COMMISSION MEETING AND JULY 13, 2007 COMMISSION MEETING:

 

A motion was made by Commissioner Mel Fisher, and seconded by Commissioner Scott McLeod to approve the minutes from the June 29, 2007 Commission Meeting.  Voting was unanimous for approval. 

 

A motion was made by Commissioner Mel Fisher, and seconded by Commissioner Scott McLeod to approve the minutes from the July 13, 2007 Commission Meeting.  Voting was unanimous for approval.

 

3. SALES REPORT:

 

Accounting Manager, Jay Prickett, presented the Commission with a comparative fiscal-year-to-date sales report through September 15th showing that total sales are up $3,560,157 above last fiscal year’s sales.  Powerball sales were up $1,816,073.  Wild Card was $104,645 more than last year, while Idaho Pick 3 was up $70,192 more than last year.  Pull-Tabs were up $100,106 and Scratch was up $1,468,242 more than last year’s fiscal year to date sales.

 

4. MARKETING PLAN UPDATE:

 

Deputy Director for Sales/Marketing Mike Helppie gave the Commission an overview of the Marketing Plan.  It gives a Marketing Plan review for FY07.  Some of the history highlights show what was accomplished and shows total FY07 sales of $130,489,780, a decrease of .06% over FY06.  However, a record dividend of $34 million was presented to the people of Idaho, an increase of 3%.

 

The internal FY08 stretch goal of $143,275,000 is a 9.80% increase over FY07 total sales.

 

The FY08 Marketing Plan also includes the Advertising Plan and Strategies, Product Promotional Plan, a FY08 Marketing Plan Flowchart and a Media Plan. 

 

There will be five (5) new holiday games that will launch in mid November.  “Merry Money” a $2 scratch ticket that was designed by our new vendor Scientific Games giving the player a chance to win up to $10,000. 

“Bingo Bells” a $3 scratch ticket giving the player a chance to win up to $25,000.  “Super Naughty or Nice Cashword” a $5 scratch ticket giving the player a chance to win up to $50,000. 

“12 Days of Winning” a $10 scratch ticket giving the player a higher prize point and a chance to win up to $120,000. 

“Xtreme Winter Green” a $15 scratch ticket giving the player a chance to win up to $250,000 and a chance to win prizes up to 20 times. 

5. HOT LOTTO AND IDAHO MILLIONAIRE RAFFLE UPDATE:

 

Deputy Director for Sales/Marketing, Mike Helppie discussed the two new lotto games, “Hot Lotto” and “Idaho Millionaire Raffle.”

 

“Hot Lotto” will launch October 1, 2007.  “Hot Lotto” is a Multi State Lottery (MUSL) game offered of eleven (11) different states.  This game is similar to Powerball with a matrix of 5/39 + 1/19 matrix.  Drawings are held on Wednesday’s and Saturday’s and each ticket sells for $1 each game.  The jackpot starts at $1 million and increases by a minimum of $50,000.  Overall odds of winning the jackpot are 1:16. 

Starting January 1, 2008 Hot Lotto will be adding a feature to the game called “Hot Lotto Sizzler.”  “Hot Lotto Sizzler” will supply a three (3) times multiplier.  For an additional dollar the player can buy the “Sizzler” ticket, giving the player a chance to triple their non-jackpot prize amount.

 

“The Works” is a new feature that has been added to the retailer terminal allowing players to purchase a $5 ticket giving them a $2 Powerball PowerPlay, a $1 Wild Card, A $1 Pick 3 and a $1 Hot Lotto Ticket.  Giving players an opportunity to play all Lotto games.  If a player has never played the Lottery before and doesn’t know what to ask for, they can now ask for “The Works” for all four lotto games.

 

The Idaho Lottery Commissioners gave approval to launch “Idaho Millionaire Raffle” launching November, 2007.  Starting November 11 through New Year’s Eve, December 31, 2007, a total of 250,000 tickets will be sold at $10 per ticket giving the player a chance at winning $1,000,000.  There are a total of 805 prizes ranging from $100 to $1,000,000.  The drawing will be held on New Year’s Eve, December 31, 2007 or sooner should all tickets sell prior to December 31st.  There will be one prize of $1,000,000, four prizes of $25,000, three hundred prizes of $500 and five hundred prizes of $100.  The over all odds are 1:380 and the odds of winning $1,000,000 is 1:250,000.

 

 

 

 

 

 

 

 

 

 

 

 

6. REVIEW OF THE LOTTERY DIRECTOR’S TRAVEL:

 

The Lottery’s audit firm, EideBailley made contact with Commissioner Scott McLeod asking him how he feels the Lottery is doing.  EideBailley stated it has been important to the Commission to keep track of the Lottery Director’s travel.  Director Jeff Anderson provided the Commission with a copy of his business travel expenses through September 18, 2007.  Jeff believes he needs to take a leadership role in the industry, accepting appointments with different committee’s and meetings with NASPL (North American Association of State and Provincial Lottery’s) and MUSL (Multi State Lottery Association).  MUSL related trips are paid for by MUSL including airfare, hotel, meal per diem and public transportation. 

Chairman Commission Roger Jones stated with past Director’s that the chairman would review the Director’s travel after the business trips incurred.

 

Jeff asked the Commission for approval to continue having the Chairman Commissioner approve all business expenses after they have incurred.

 

A motion of approval was made by Commissioner Lydia Justice-Edwards to continue with the Commission Chairman to approve all business expenses after they have incurred and seconded by Commissioner Mel Fisher.  Voting was unanimous for approval.

 

7. APPROVAL OF SCIENTIFIC GAMES CONTRACT:

 

Director Jeff Anderson reviewed the Scientific Games Contract with the Commission.  He stated that the Lottery had their RFP out when Scientific Games purchased OGT (Oberthur Gaming Technologies).  This took place several days before the RFP responses were due.  Scientific Games and Pollard Banknote were aggressive in their proposals.  The Lottery felt there were a number of things to conclude in the base price and through negotiations with Scientific Games the Lottery was able to reduce the fee and increase the number of optional items that would not normally be paid for in the base fee.  There was a significant reduction in the base fee.  Scientific Games is the leader in the industry.  The features important to the Idaho Lottery in the base price included the PDF417 that allows us to validate instant tickets without a pin and also the KDS Security shuffle feature.

 

Geneva McCaffrey with Scientific Games explained to the Commission what the KDS shuffle feature allows Scientific Games to program the game, the prizes in the game, and then transfer of the game to the press.  This is an aid to security in the programming of the game.  The Lottery also requested a winner’s audit which will supply a validation tape defining the burn numbers of the game that goes to each ticket. 

Jeff explained that Scientific Games also provided the Idaho Lottery with the Most Favorite Nation Status on the options so that the Lottery and Scientific Games wouldn’t have to go through and negotiate each individual item.  The Lottery and Scientific Games came up with a process that allows the Lottery to choose an option if it isn’t part of the base agreement to get the lowest price another state already receives plus 5%.  The initial term was extended to five (5) years plus a three (3) year option and provided exclusivity to Scientific Games. 

 

Jeff asked the Commission for approval of the Scientific Games Contract.

 

A motion was made by Commissioner Mel Fisher to approve the Scientific Games Contract and was seconded by Commissioner Lydia Justice-Edwards.  Voting was unanimous for approval.

 

8. EXECUTIVE TEAM CHANGES:

 

Director, Jeff Anderson stated that Deputy Director, Steve Woodall will be retiring at the end of the year.  Steve has been the Deputy Director of Administration since 1989, the beginning of the Lottery.

 

As of January 1, 2008, Deputy Director of Operations, Becky Schroeder will be promoted to Deputy Director of Administration. 

 

Also starting January 1, 2008, Accounting Manager, Jay Prickett will be promoted to a CFO (Chief Financial Officer) role.

 

At a later date the Lottery will hire a CPA (Certified Public Accountant) to help Jay with financial reporting.

 

9. PROCLAMATION FOR FORMER COMMISSIONERS – TERESA DESHON AND JIM SIMPSON:

 

Chairman Commissioner, Roger Jones commended former Commissioners, Teresa Deshon and Jim Simpson for their dedicated work and support through their term of being on the Lottery Commission.  In appreciation, both Teresa Deshon and Jim Simpson were presented with a proclamation signed by Idaho Governor, Butch Otter and a print of the Idaho Capitol Building done by a nationally known local artist.

 

 

 

 

 

 

 

10. SET FUTURE COMMISSION MEETING DATE FOR SEPTEMBER:

 

The next scheduled Commission Meeting was set for Tuesday, November 20, 2007 at 10:00 a.m. at the Idaho Lottery Commission.

 

Genn will be in touch with each Commissioner to confirm the meeting. 

 

11. ADJOURNMENT:

 

There being no other business to discuss, Commissioner Mel Fisher made a motion to adjourn and Commissioner Lydia Justice-Edwards seconded.  With the vote being unanimous, the meeting adjourned at 11:20 a.m.

 

12. TOUR OF LOTTERY OFFICE, INTRALOT, ES/DRAKE & LOTTERY WAREHOUSE:

 

Commissioner, Scott McLeod requested a tour of the Lottery office. 

Director, Jeff Anderson explained the organized tour consisting of the Lottery office and what will take place within the next six months of the remodel, a tour of Intralot headquarters and their operations, ES/Drake Office for lunch and some of the Lottery marketing materials and the Idaho Lottery Warehouse.

 

CERTIFICATION:

 

I hereby certify that the foregoing minutes are a true and correct record of the actions and decisions made by the Lottery Commission on September 18, 2007.

 

__________________________________                ___________________

Jeff Anderson                                                         Date

Director