Joint Travel Recreation Wildlife and Cultural Resources Committee September 29 2015 AGENDA FY15 Summary of performance FY16 Projected Budget Social and Community Responsibility Tracker Study Wave 2 ID: 704355
Download Presentation The PPT/PDF document "Wyoming lottery corporation" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Wyoming lottery corporation
Joint Travel, Recreation, Wildlife and Cultural Resources Committee
September 29, 2015Slide2
AGENDA
FY15 – Summary of performance
FY16 – Projected Budget
Social and Community ResponsibilityTracker Study – Wave 2
9/17/2015
Wyoming Lottery Corporation
2Slide3
FY 2015 Impact on the
cowboy state
9/17/2015
Wyoming Lottery CorporationPage 3440 retailers across Wyoming
Received $1,088,532 in revenue
6% retailer commission
1% validation bonus on winning tickets
Retailers report an estimated 8-10% boost in sales
Prizes
$4,555,697.00 in winnings
Wyoming jobs!
Lottery has hired eight (8) employees
Intralot
,
WyoLotto’s
gaming vendor, has hired nine (9) permanent employees
Lottery hired eight (8) temporary employees for Lottery related promotions
Slide4
Wyoming Retailers
9/17/2015
Wyoming Lottery Corporation
Page 4
WYOMING LOTTERY CORPORATION: RETAILER SUMMARY YEAR END: FISCAL YEAR 2015
County
Number of Retailers
County
Number of Retailers
Natrona
58
Converse
16
Laramie
57
Niobrara
3
Sheridan
19
Hot Springs
5
Sweetwater
38
Johnson
10
Albany
21
Campbell
28
Carbon
25
Crook
7
Goshen
10
Uinta
24
Platte
11
Washakie
6
Big Horn
10
Weston
6
Fremont
26
Teton
15
Park
21
Sublette
9
Lincoln
15
Total
440
Total Net Sales
Total Validation Commissions (1%)
$17,838,410
$19,812.10
Total Sales Commissions (6%)
Total Amount Earned by Retailers
$1,068,720.18
$1,088,532.28Slide5
9/17/2015
Wyoming Lottery Corporation
Page
5Tickets for the Cowboy Draw™ game are sold ONLY in Wyoming, giving WyoLotto players higher chances of winning prizes.
Since
the game’s launch on March 15, four lucky players have hit the jackpot and more than 300 players have won $1,000 each. Total winnings for just the Cowboy
Draw™
game have reached over an estimated $2 million.
Cowboy Draw Winner
$628,630
Cowboy Draw Winner
$285,226
Cowboy Draw Winner
$277,988
Cowboy Draw Winner
$360,000Slide6
FY’16 Projected budget
9/17/2015
Wyoming Lottery Corporation
Page 6Slide7
cost of goods sold
Chart
9/17/2015
Wyoming Lottery Corporation7Slide8
9/17/2015
Wyoming Lottery Corporation
8
FY 16 TOTAL PROJECTED BUDGETED AMOUNT
Description
Cost
Employee / Labor Costs Total
1,041,336.00
Employee Travel
28,375.00
Board Expenses
45,000.00
Services
2,410,329.00
Dues & Memberships
42,685.00
Communication Expense
14,400.00
Fleet
13,171.00
Office Supplies
51,980.00
Retail Ops
7,000.00
Loan Payoff
1,800,000.00
Carryover Expense
400,000.00
Total Projected
$ 5,854,276.00 Slide9
9/17/2015
Wyoming Lottery Corporation
9
FY 16 TOTAL PROJECTED BUDGETED AMOUNT
Description
Percent
Cost
Game Projected Sales
-
27,034,600.84
Prize Pool
58.49%
15,813,722.69
Gaming Vendor
-
Intralot
11.89%
3,214,414.04
Retailer Commission
6.00%
1,622,076.05
Retailer Validation
1.00%
48,206.64
CD - Jackpot Protection
1.04%
1,530,948.18
CD - Jackpot Reimbursement
_
1,250,000.00
Total COGS
77.60%
20,979,367.61
Gross Revenue
6,055,233.23
Projected Expenses
5,854,276.00
Total Projected Transfer
$ 200,957.23 Slide10
Addressed Joint Judiciary committee question
“
What would revenues be with additional products added to the portfolio and in particular, Scratch
?” 9/17/2015
Wyoming Lottery Corporation
Page
10Slide11
cost of goods sold
Chart
9/17/2015
Wyoming Lottery Corporation11Slide12
With Product A - Scratch
9/17/2015
Wyoming Lottery Corporation
Page 12Slide13
With Product A & B (additional Draw game)
9/17/2015
Wyoming Lottery Corporation
Page 13Slide14
Community
&
Social
responsibility149/17/2015
Wyoming Lottery CorporationSlide15
Community Responsibility
Lottery continues to demonstrate responsibility to the community and citizens of Wyoming.
Limit on one transaction (spend) is $125
Products are not available 24 hours per dayProblem Gambling Hotline Phone Number is posted on the back of our tickets, playslips and on our website.
On our website and directly under the Play tab there is a link to Problem Gambling information.
Problem Gambling brochure is available at every retailer location that sells the product.
9/17/2015
Wyoming Lottery Corporation
15Slide16
Community responsibility
Games are operated with utmost integrity and security
With each game release and with various upgrades, the central system is tested.
With each new game released, the RNG is testedWith each batch release, the SOW is thoroughly reviewed for accuracy and release outcomes are verified.In advance of all system changes and modifications and as a proactive approach in change management, risks are documented, assessed and analyzed. 9/17/2015
Wyoming Lottery Corporation
16Slide17
Responsibility
To ensure that the gaming vendor’s system is operating properly, lottery invested in an Internal Control System (ICS). This system allows for 24/7 monitoring of the central gaming system (CGS) and if there is a balancing issue or the CGS is not operating as scoped, lottery is alerted.
This ICS system provides lottery as well as its players with a sense of security that the central gaming system is operating with the highest degrees of integrity.
9/17/2015Wyoming Lottery Corporation
17Slide18
Social & community responsibility
Continued education regarding Problem and Responsible Gaming.
Attended National Conference on Problem Gambling (NCPG)
Connected with professionals on the subject including, treatment providersLearned about problem gambling research studies, results and opportunitiesLearned about changes in gaming that includes state-of-the-art gambling terminals that have responsible gaming features built-in
Continued collaboration with the Wyoming Department of Health on defining a baseline of problem gamblers within the state and opportunities for inclusion with other gambling entities.
9/17/2015
Wyoming Lottery Corporation
18Slide19
Tracker Study
Wave 2
9/17/2015
Wyoming Lottery Corporation19Slide20
Wyoming Lottery Product Awareness & Usage Study – Highlights from Wave 2
June 21, 2015
RESTRICTED, LEVEL 2 –
Distribution of this document must be approved by the Senior Research Analyst of the WLC. Information deemed confidential is exempt - W.S. 16-4-201 through 16-4-05Slide21
Respondent Profile
Respondent Profile
21
In Wave 2, the largest age segment was over 65 while the largest age segment in Wave 1 was 55-59. In both waves, the Lottery is highly dependent on an older demographic with 54% of Wave 2 participants being over 55.
Gender was fairly evenly divided in both waves.
RESTRICTED, LEVEL 2 –
Distribution of this document must be approved by the Senior Research Analyst of the WLC. Information deemed confidential is exempt - W.S. 16-4-201 through 16-4-05Slide22
Respondent Profile
Respondent Profile
22
Educational levels were relatively consistent with more than 70% of both waves having some education after high school.
More than 53% of participants indicated an average household income above $50,000 with a modal answer of $50,000-$74,999.
RESTRICTED, LEVEL 2 –
Distribution of this document must be approved by the Senior Research Analyst of the WLC. Information deemed confidential is exempt - W.S. 16-4-201 through 16-4-05Slide23
Key Findings
Key Findings & Recommendations
23
Cowboy Draw has excellent awareness and participation.
Ninety-nine percent of Wyoming Lottery players surveyed are aware of the product, and 92% have made a purchase.
Wyoming is keeping more Lottery purchases in state since Wave 1 of the survey was completed.
The percentage of people who also purchased Lottery products in Montana and South Dakota diminished significantly while Nebraska showed a slight decrease as well.
There is tremendous interest in the addition of scratchers.
Eighty-four percent of participants are interested in scratchers from the Wyoming Lottery. The majority indicated they would spend at least $10 per month if scratchers were available. Fourteen percent of participants still purchase scratchers in other states.
RESTRICTED, LEVEL 2 –
Distribution of this document must be approved by the Senior Research Analyst of the WLC. Information deemed confidential is exempt - W.S. 16-4-201 through 16-4-05Slide24
24
There was no singular motivation for buying Lottery products.
Size of the Jackpot and Having Extra Cash Available were the most frequently mentioned responses in both waves.
Size of the Jackpot increased from Wave 1 (31%) to Wave 2 (41%).
Motivations for Buying Lottery Products
Detailed Findings
RESTRICTED, LEVEL 2 –
Distribution of this document must be approved by the Senior Research Analyst of the WLC. Information deemed confidential is exempt - W.S. 16-4-201 through 16-4-05Slide25
WAVE 1
Only 1/3 of Lottery Customers wager on other activities but the spend is significant.
While
just under 33% of Lottery customers have also played at a casino, OTB or played slots at an OTB this accounts for 43% of the total wagering spend of all participants. In particular casinos generate a much higher spend per person compared to Lottery purchases. Slide26
26
For Wave 2, spend was broken down between Wyoming and Other States.
The modal answer for all categories was $100 to $249.
Wagering Spend –
Historical Race Terminals
at OTB
Detailed FindingsSlide27
27
The overwhelming majority of participants had purchased a Lottery product in Wyoming during this timeframe; however, the purchases did decrease from 98% in Wave 1 to 88% in Wave 2.
Colorado was the only other state in which more than 20% of participants purchased a Lottery product.
Lottery Purchases by State
Detailed Findings
RESTRICTED, LEVEL 2 –
Distribution of this document must be approved by the Senior Research Analyst of the WLC. Information deemed confidential is exempt - W.S. 16-4-201 through 16-4-05Slide28
28
Scratchers
Detailed Findings
RESTRICTED, LEVEL 2 –
Distribution of this document must be approved by the Senior Research Analyst of the WLC. Information deemed confidential is exempt - W.S. 16-4-201 through 16-4-05Slide29
29
Eighty-six percent of participants are willing to buy Scratchers at any prize level.
Twenty-six percent of participants will buy Scratchers at any price.
Forty-five percent of participants will only buy Scratchers under $5.
Scratchers – Prizes and Prices
Detailed Findings
RESTRICTED, LEVEL 2 –
Distribution of this document must be approved by the Senior Research Analyst of the WLC. Information deemed confidential is exempt - W.S. 16-4-201 through 16-4-05Slide30
30
Only 22% of participants buy Scratchers at least once every two to three weeks.
The largest percentage of participants buy Scratchers Once Every 4-6 Weeks (21%).
Scratchers – Frequency of Purchase
Detailed Findings
RESTRICTED, LEVEL 2 –
Distribution of this document must be approved by the Senior Research Analyst of the WLC. Information deemed confidential is exempt - W.S. 16-4-201 through 16-4-05Slide31
Thank you
31
9/17/2015
Wyoming Lottery Corporation