Commission Meeting for 3/20/2014
 
IDAHO LOTTERY COMMISSION

Time, Date and Place:

The 184th meeting of the Idaho Lottery Commission took place on Thursday, March 20, 2014 at 10:00 AM at 1199 Shoreline Lane, Boise, Idaho 83702.

Attendees:IDAHO LOTTERY COMMISSION

Time, Date and Place:

The 184th meeting of the Idaho Lottery Commission took place on Thursday, March 20, 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

Deputy Director of Sales, Shannon Newhouse

Chief Financial Officer, Jay Prickett

Management Assistant, Jennifer QuinnoMiller

Others Present:

Sara Chase, Drake Cooper

Brad Surkamer, CLM

Ryan Belveal, International Gamco

Zeke Chemodurow, Intralot

Tim Davis, Deputy Attorney General

1. Meeting Called to Order

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

2. Approval of the Minutes

Commissioner Keyes moved to approve the minutes from the January 23, 2014 meeting. Commissioner Michael seconded the motion. The vote was unanimous for approval.

3. Director Update

Director Anderson updated the Commission on current business. He introduced Idaho Bingo, a $5 Draw Game, which we plan to bring to market later this summer. It is our first experience with a $5 Draw Game.

We have been working with International Gamco on an upgraded Touch Tab product that is currently in acceptance testing at the Lottery. We are considering a pilot program in 1012 locations at the end of May after testing is complete.

The National Premium Game, Monopoly Millionaire, (a MultiState Lottery Association – MUSL) launch date is still undetermined. This game will be discussed in detail next week at a MUSL Board Meeting. They are still working on finding a television syndicator for the TV game show. There has been some talk about other countries such as Australia joining this game. If that happens we will not be able to participate as Idaho Statutes would prohibit it. Currently, we are only allowed to participate in games with the United States and Canadian Provinces. If we decide to recommend proceeding, we’ll update and make the request at the May Commission meeting.

We have considered a $5 Lucky for Life draw game. Lucky for Life is currently played in 5 states in New England and has been very successful. They are looking to broaden the reach of that game to include other states. We tested this game in the market and it did very well. We would like to request the Commission’s conditional approval to continue to show interest in that game. We would, of course, come back to the Commission for final approval to move forward with the game once we have the final matrix and game rules we would be subjected to.

Commissioner Corbett moved for a preliminary approval to move forward with the Lucky for Life game. Commissioner Keyes seconded the motion. The vote was unanimous for approval.

The Director presented a terminal based instant ticket game concept. This is a game that other Intralot states have been playing for some time with great success. As with all terminalbased instant ticket games in Idaho, the tickets would be drawn from a finite pool of tickets and have predetermined outcomes. It is a quick pick game at the terminal and with a large library of games to be offered, and research shows players would enjoy it. He asked the Commission for approval to move forward with the games with Intralot.

Commissioner Michael moved for approval to move forward with the game. Commissioner Kerrick seconded the motion. The vote was unanimous for approval.

MUSL is considering another change to the matrix of the Powerball game. This would also include a Promotional Entry Ticket (PET) component which we will hear more about at the MUSL board meeting. Director Anderson will report back in the next Commission meeting.

House Bill 478 has passed the House and the Senate. Essentially, it doesn’t change anything for us, other than where our money goes. For the last 5 years a portion, up to 25%, of our dividend goes to the Bond Levy Equalization Fund, which helps smaller school districts pay their bond levies. Originally there was a sunset provision which stated after 5 years that provision would end in 2014. The bill passed and was signed by the Governor. The Bond Levey Equalization Fund is now a permanent beneficiary of the Lottery.

The Wyoming Lottery is getting ready to start, as early as June but most likely in the fall. Idaho Lottery retailers at the borders don’t seem to be concerned about it. The new Wyoming Lottery will only sell Powerball and Mega Millions draw games and will not be selling scratch games.

The Liquor Division is supporting the Lottery in a Scratch Game promotion for the Cheers licensed product. We have done a Cheers game before which was one of the highest indexing games we have ever had. Part of the promotion is to get coasters in bars. The Liquor Division will be including them in bar orders when they are picked up by licensees.

Last, we suggest a “Lottery 101” event before our next meeting in May at Intralot. We would go through all games and how they play as well as the equipment, etc. We feel this will benefit everyone, especially the new Commissioners.

4. Quarterly Current Sales Report

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

5. Mareketing Division Update

Deputy Director Sherie MoodySt. Clair gave a marketing update. She updated Commissioners on the 25th Anniversary game and stated we are averaging $660,000/week on this game alone. She mentioned we are getting ready to start our Cheers campaign, too. Along with the Scratch ticket, we are also doing a Cheers Tap Scratch Game. We are excited to be able to leverage the Cheers brand with our Tap Scratch product. There will be a mass media campaign but that will be focused on the Scratch Game.

Next, she showed them a sample and described the new Idaho Bingo with a proposed launch date of August 17 with Commission approval.

Commissioner Keyes moved to approve Idaho Bingo. Commissioner Corbett seconded the motion. The motion was unanimous for approval.

6. Security Division Update

Deputy Director French gave a brief update on Charitable Gaming.

7. Executive Session

Commissioner Keyes motioned to move into Executive Session pursuant to Idaho Code 672345(1)(d) to consider records that are exempt from disclosure as provided in Chapter 3, Title 9 of Idaho Code. Commissioner Michaels seconded the motion. The Chairman took a rollcall vote which was unanimous to move into Executive Session.

Out of Executive Session, Commissioner Corbett made a motion to offer a directive to the Hearing Officer for Charitable Gaming hearings that their findings will default to a preliminary order at the time it is released by the Hearing Officer. Commissioner Keyes seconded the motion. The motion was unanimous for approval.

8. Sales Division Update

Deputy Director Newhouse updated the Commission on what is happening in the Sales Division. We are back up to full speed with our Sales Reps as we have hired a new Rep for the Boise region. We are working hard to keep up with the 25th Anniversary ticket sales and Anniversary celebrations. We have had great sales increases and are really working to hit our $50 million mark. We are on track to surpass the $2 million goal with the Liquor Stores and we are still watching the Wyoming Lottery startup in order to track launch dates, etc.

9. Set Future Commission Meeting Date

The next Commission meeting has been set for May 15, 2014.

10. Adjournment

Commissioner Kerrick 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