Commission Meeting for 1/23/2014
 


Time, Date and Place:

The 183rd meeting of the Idaho Lottery Commission took place on Thursday, January 23, 2014 at 10:00 AM at 1199 Shoreline Lane, Boise, Idaho 83702.

Attendees:

Commissioners Present:

Chairman, Mel Fisher

Commissioner, David Keyes

Commissioner, Craig Corbett

Commissioner, Gary Michael

Commissioner, Susan Kerrick

Lottery Staff Present:

Executive Director, Jeffrey Anderson

Chief Operating Officer, Becky Schroeder

Deputy Director of Security, Amber French

Deputy Director of Marketing, Sherie MoodySt. Clair

Chief Financial Officer, Jay Prickett

Public Information Specialist, David Workman

Key Accounts Manager, Kim Mathison

Others Present:

Sara Chase, Drake Cooper

Brad Surkamer, CLM

Ryan Belveal, International Gamco

Jeremy Chou, Givens Pursley

Zeke Chemodurow, Intralot

1. Meeting Called to Order

Meeting called to order by Chairman Fisher at 10:00 AM.

2. Approval of the Minutes

Commissioner Michael moved to approve the minutes from the November 12, 2013 meeting. Commissioner Keyes seconded the motion. The vote was unanimous for approval.

3. Legislative Update

Jeremy Chou discussed with the Commission updates regarding the current Legislative Session. He talked about changes in member of the Senate and House of Representatives, the germane Committees and their leadership, Lottery legislation and other pertinent information.

4. Audit Committee Discussion and Selection

The Commission discussed forming an audit committee comprised of two Commission members. Commissioner Corbett moved to form an Audit Committee with Commissioner Michael as Chair of the Audit Committee and the other member being Commissioner Keyes. Commissioner Michael seconded the motion. The vote was unanimous for approval.

5. Director Update

Director Anderson introduced and welcomed the newest Commissioner, Susan Kerrick. He informed the Commission he will be making his budget presentation next week to JFAC and invited them to watch or listen to the presentation. He discussed progress with Geonomics and Treasure Hunt second chance draws.

As a member of the Security and Integrity Committee of The MultiState Lottery Association, which operates our Powerball game and other multistate games, we have been working on a method to use as technology has changed to find a way to do away with serialized, secure paper. MUSL is working on a project called the “Black Box Project” which proposes a digital method of knowing where a ticket was sold even if is not printed on secure paper. All of the different ways we capture transaction information would be incorporated into this and it will open up the opportunity for things such as “inlane” sales in a grocery store where they can use just regular paper. The Idaho Lottery and the Montana Lottery will be piloting the program, representing the Intralot states.

We have talked over the last couple of years about a National Premium game. We received a presentation from MDI on a product based on the Monopoly Game and would be called Millionaire Monopoly. They are looking at adding a television component to the game where there would be a weekly program.

Director Anderson touched on internet gaming stating that Lotteries believe it is a State’s Rights and there should be no federal involvement in regulating gaming. He also indicated that while other States are pursuing internet gaming, the Idaho Lottery has no interest or intention of entering the Internet gambling space.

He updated the Commission on the Lucky for Life game. We have an interest in the game and are moving forward with pursuing it. He also reminded the Commission that the Powerball game changes went in to effect on the 22nd where the variable prize PowerPlay multilevel feature was put back into effect.

The Enriching Endowments group has filed a tort claim with the State of Idaho against the Lottery. Chief Operating Officer Schroeder added that we provided Risk Management an analysis of the facts. Risk Management has not yet approved the tort claim.

Related to Charitable Gaming, a hearing for Hunting for Kids has been moved to March. The Hearing Officer will conduct the hearing and if there is an appeal from the organization it would come to the Commission for hearing.

Finally, he spoke about the Wyoming Lottery, informing the Commission that we are still keeping track of what they are doing and monitoring their progress but overall, our retailers on the border are not worried about the Wyoming Lottery coming.

6. Break

7. Quarterly Current Sales Report

The sales report is entered in to the minutes as an attachment.

8. Sales Update

Key Accounts Manager, Kim Mathison, gave an update from the Sales Department. She reported the Lottery currently has about 1150 retailers in the State. About 61% of those are made up of convenient stores. Of the convenient store segment, the vast majority of those are chain accounts. Our largest chain account is Jackson’s which has been with the Lottery since inception, 25 years ago. Grocery stores make up about 18% of sales over all with our largest chain being Albertsons. Overall, our chain stores are experiencing Lottery sales growth.

9. Marketing Division Update

Deputy Director of Marketing, Sherie MoodySt. Clair gave a marketing update. She presented the second quarter review and third quarter highlights of the Marketing Plan and marketing calendar detailing past, current and future campaigns. She demonstrated new games and presented new commercials. She introduced our new 25th Anniversary Scratch Game and accompanying mobile second chance game as well as provided an overview of the Wooh Crew.

10. Set Future Commission Meeting Date

The next Commission meeting has been set for March 20, 2014.

11. Adjournment

Commissioner Corbett moved to adjourn, seconded by Commissioner Keyes. The vote was unanimous to adjourn.

Certification:

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

Jeffrey R. Anderson, Executive Director

Lottery Commission Secretary