Massachusetts State Lottery Commission Meeting

Transcription

1 Massachusetts State Lottery Commission Meeting Executive Director s Report Delivered by Paul R. Sternburg July 30,

2 Lottery Sales Update FY13 was another stellar year for the Lottery. We posted our second consecutive year of record-breaking sales; players across the state and our network of retailers also benefited from the Lottery s success with record-level prize payout and retailer income (commissions and bonuses for selling game tickets). Profit-wise, we exceeded projections budgeted for the fiscal year, and expect to return the second-highest profit in Lottery history. Additionally, it is important to note that these impressive numbers were reached without the benefit of the additional day of sales (February 29) we had the previous year, which was a leap year, and in spite of severe winter weather and widespread stoppage of business due to the tragic occurrences in the spring which served to negatively impact Lottery sales. Overall sales for July 1, 2012 through June 30, 2013 rang in at $4.831 billion, topping the previous sales record of $4.723 billion set in FY12 by $108 million. And while the final figures are still being calculated, the Lottery anticipates returning $952 million in net profit to the Commonwealth, which is $25 million higher than the projected $927 million that was included in the FY13 state budget. 2

3 Lottery Sales Update June 2013 sales were up $7 million over last year and our prize payout for the month was 71.5 percent as compared to 75 percent in June 2012; however, due to prize accruals our overall payout rose to 72.7 percent for FY13 from 72.6 percent for the first 11 months of the fiscal year. The 72.7 percent is a record payout for the Lottery, and as explained in previous correspondence, the increase in prize payout percentage fluctuates based on the schedule or rate at which players cash in prizes. The sales increase in June 2013 was largely driven by a $7 million bump in the Instant Ticket portfolio; a $2 million increase in KENO sales; and, $2 million in sales from Jackpot Poker, the new monitor game that debuted mid-month. Four games in the portfolio experienced sales decreases in June: Mega Millions and Powerball sales were down $1 million due to smaller jackpot offerings as compared to last June; Lucky for Life was down $1 million as well; and the Daily Race Game was down $1 million because the game was officially terminated on June 12 and replaced by Jackpot Poker. Over the coming weeks, we will be performing final work on these year-end figures and look forward to sharing our finalized financial statement in September. 3

4 August 2013 Instant Ticket Release (Aug. 6) Silver 7 s Price Point: $2, Top Prize: $50,000 Wild Joker Price Point: $1 Top Prize: $10,000 Cash Blast Price Point: $5 Top Prize: $1 million Black Ace Tripler Price Point: $2, Top Prize: $50,000 4

5 June 2013 Instant Ticket Release Sales Update $12,000 Jackpot Price Point: $1 7 Week Sales: $3,481,402 $1,000,000 Jackpot Price Point: $5 7 Week Sales: $24,640,070 $100,000 Jackpot Price Point: $2 7 Week Sales: $12,115,876 $4,000,000 Jackpot Price Point: $10 7 Week Sales: $31,486,680 5

6 6

7 7

8 8

9 9

10 10

11 11

12 12

13 13

14 14

15 15

16 16

17 17

18 18

19 MSLC Revenue Results June FY13 vs. FY12 ($ millions) Through June 30, 2013 FY13 % of Total FY12 % of Total $ Change % Change Instant Tickets 69 9 $ % $ % $7 2.7% MegaMillions ## 4 1.0% 4 1.2% % Powerball ## 6 1.6% 7 1.9% % Keno ## % % 2 2.5% Mass Cash ## 6 1.5% 5 1.5% 0 5.7% Race Game ## 1 0.2% 2 0.5% % Lucky For Life ## 3 0.7% 4 1.0% % Numbers Game ## % % 0-1.2% Super Raffle 0 0.1% 0 0.0% % Megabucks ## 2 0.5% 2 0.5% % Jackpot Poker 2 0.4% 0 0.0% % Total $ % $ % $7 1.9% 19

20 MSLC Revenue Results Year-to-Date FY13 vs. FY12 ($ millions) Through June 30, 2013 FY13 % of Total FY12 % of Total $ Change % Change Instant Tickets 69.9 to $3, % $3, % $99 3.1% MegaMillions % % % Powerball % % % Keno % % % Mass Cash % % % Race Game % % 1 4.7% Lucky For Life % % % Cash WinFall 0 0.0% % % Numbers Game % % % Online Raffle 0 0.0% % % Super Raffle 3 0.1% 0 0.0% % Megabucks % % % Jackpot Poker 2 0.0% 0 0.0% % Total $4, % $4, % $ % 20

21 21

22 Lottery Reform Scorecard Governance On Saturday, July 20, 2013, The National Council on Problem Gambling presented its annual Corporate Social Responsibility Award to the Massachusetts State Lottery Commission. Brian Donelan, Employee Assistance Program Coordinator, traveled to the NCCG s 27th National Conference in Seattle, Washington to accept the award on the Lottery s behalf. The NCPG noted the Lottery s recent work with the Massachusetts Council on Compulsive Gambling, training over 100 sales representatives on how to recognize problem gambling and providing to our big winners -- a letter outlining their new, elevated risk for gambling problems and resources available if their gambling ever becomes problematic. The NCCG praised the Lottery for its leadership in the Massachusetts Partnership on Responsible Gambling (MPRG), supporting the national holiday campaign to not sell tickets to minors and contributing actively during National Problem Gambling Awareness Week (NPGAW). The Lottery is working with the Office of Campaign and Political Finance to provide refresher trainings to all Lottery employees over the next several months. OCPF last conducted training during the summer of On June 30th, the Lottery submitted its Performance Management and Innovation Report, addressing Lottery goals and achievements along with performance metrics, to the House and Senate Committees on Ways and Means, the House and Senate Committees on Post Audit and Oversight, and the Joint Committee on State Administration and Regulatory Oversight on June 30th pursuant to (newly adopted) Section 26A of G.L. c. 10. Operations The Lottery is presently reviewing and updating its licensing policies and procedures, addressing the licensing process for new Agents, the updating of licenses and Agents undergoing a change in ownership. Human Resources Employee Performance Evaluation Statistics 22

23 Thank you for the opportunity to share this information. We look forward to your feedback and to further discussion on these figures, as well as other Lottery initiatives. 23