INSIGHTSMay/June 2014 - NASPL Matrix
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A Gateway to Leadership - NASPL’s Lottery Leadership Institute
INSIGHTS
The Official Publication of the North American Association of State & Provincial Lotteries
May/June 2014
A Lasting
Influence
Tony Gumina was perhaps the ultimate idea man, and his
accomplishments in the lottery industry won’t soon be forgotten
MAXimizing
the Winning Experience
The success of Canada’s Lotto Max has created line extensions
for two of the country’s regional lotteries, and the game was also
an inspiration behind America’s new national game
MONOPOLY
adds to its brand legacy
Plans call for the $5 terminal-based game MONOPOLY Millionaires’ Club
to launch in October, with more than half of American lotteries initially
signed on, and many more expected to follow
2 INSIGHTS May/June 2014
From the
President NASPL Staff
David B. Gale Executive Director
Thomas C. Tulloch Director of Administration
Andrew White VP of Operations
The months of May and June contin-
Tamika Ligon Director of Program Planning
ued to offer outstanding educational op-
portunities for our industry. John Koenig Graphic Designer
The NASPL iLottery Game Developers Janine Hutzell Accounting
Conference held in Cleveland provided
lottery and vendor staff the opportunity to Patricia McQueen Staff Writer
come together and learn from top game Jake Coy Vendor Relations
innovators from both inside and outside
of our industry. With Robert Tercek act- Mike Duff NSI Coordinator
ing as the master of ceremonies of this
event, there was a real excitement in the
air about the possibilities for a new breed industry. Registration is now open.
of lottery games in the future. I want to Finally, I want to highlight the recent
thank Ohio Lottery Executive Director Responsible Gambling initiative undertak-
NASPL Executive Committee
Dennis Berg and his staff for assisting us en by NASPL. By now, all NASPL Lottery Gary Grief President
with this terrific event and acknowledge Members should have received both em- Paula Harper Bethea First Vice-President
Robert for a tremendously inspiring job in ployee and retailer training videos along
helping us launch this new creative learn- with associated materials. These items Terry Rich Second Vice-President
ing opportunity for NASPL. were created in partnership with the May Scheve Reardon Treasurer
Our Spring Directors’ Meeting com- National Council on Problem Gambling
ing up in New Hampshire will once again (NCPG) and can also be reviewed on the Rose Hudson Secretary
offer members the chance to interact on NASPL Matrix. I want to express appre- Buddy Roogow Immediate Past President
a deeper level, discuss current issues and ciation to Stephen Martino, Chair of the
challenges, and reopen important dia- NASPL Responsible Gambling Committee, Greg Mckenzie Pres. Interprovincial Lottery
logues with our vendor partners. Another for his efforts on responsible gambling. Carole Hedinger Region I Director
first for NASPL will be the opportunity for Stephen has tirelessly supported this work
us to meet with the World Lottery Asso- and kept it moving forward. Likewise, I Alice Garland Region II Director
ciation’s Executive Committee, a valuable would also like to acknowledge the hard Randy Miller Region III Director
relationship that should benefit both as- work of Alice Garland, Executive Direc-
sociations in moving forward with their tor of North Carolina Education Lottery, Jeff Hatch-Miller Region IV Director
respective missions and hopefully set the Keith Whyte, NCPG Executive Director,
table for future collaboration. and Maureen Greeley, NCPG President
The “Call for Entries” for the NASPL for the important roles that they and their
’14 Awards has been released. These organizations have played in this initiative.
annual awards offer lotteries and their
advertising agencies a chance to be rec-
ognized while also informing others of
This is just NASPL’s first step in this direc-
tion and I look forward to our association
building on this solid foundation regarding
INSIGHTS
new initiatives around North America. As responsible gambling.
always, each award entry will be uploaded Creative ideas and education contin- Circulation:
for viewing to the NASPL Matrix. I encour- ue to be a significant focus of our associ- Lottery Insights ISSN 1528-123X,
May/June Issue 2014,
age all lottery members to participate. ation. Participation and being actively en-
Volume No. Fourteen, Issue Eight.
The Professional Development Sem- gaged in these events are the keys to our Published bi-monthly by NASPL
inar, in Myrtle Beach, South Carolina, is success. I hope to see you at an upcoming (North American Association of State
also just around the corner. Paula Harper NASPL event! and Provincial Lotteries)
Bethea and her staff, working hand-in-
hand with our dedicated NASPL team, 1 South Broadway,
have put together an outstanding event, Geneva, OH 44041
and I know that Paula and her team are
© 2014 All rights reserved.
prepared to welcome lottery staff from
around the country to South Carolina NASPL Email: info@nasplhq.org
with genuine southern hospitality. We’ve Gary Grief Web Site: www.naspl.org
got an outstanding professional track pre- NASPL President Phone: 440.466.5630
pared and, as always, an opportunity to Executive Director, Fax: 440.466.5649
meet and interact with your peers in the Texas Lottery Commission
INSIGHTS May/June 2014 3
May/June 2014
4
Around the Industry
What’s happening around NASPL
6
Paula Otto Honored by Public Relations
Society of America
8
Making a Difference: A LASTING INFLUENCE
Tony Gumina was perhaps the ultimate idea man, and his
accomplishments in the lottery Industry won’t soon be forgotten
6
By Patricia McQueen, NASPL Staff Writer
10
No Really - I’m on your Side
Stephen Wade, Research and Development Manager, Washington’s
Lottery and Principal, Lottery Management Consulting, LLC
14
Create Reality - Don’t Report on It
By Jan Kessinger, HKC, Inc.
20
8
Upping The Ante In Responsible Gaming
Begun as a project by the North Carolina Education Lottery,
two responsible gaming training videos are now available
to lotteries across North America through NASPL’s partnership
in their development.
By Patricia McQueen, NASPL Staff Writer
20
24
Maximizing the Winning Experience
The success of Canada’s Lotto Max has created line extensions for
two of the country’s regional lotteries, and the game was also an
inspiration behind America’s new national game.
By Patricia McQueen, NASPL Staff Writer
26
Monopoly Adds to its Brand Legacy
The $5 terminal-based game MONOPOLY Millionaires’ Club
will launch in October, with more than half of American lotteries
initially signed on, and many more to follow.
26
By Patricia McQueen, NASPL Staff Writer
34
A Gateway to Leadership
NASPL and the Missouri Lottery host the Lottery Leadership Institute.
40
NASPL First quarter Sales - 2013 Vs. 2014
4 INSIGHTS May/June 2014
Around the Industry A look at what’s happening around NASPL
New Mexico Lottery, Problem Gambling Idaho Lottery to Launch Cheers branded TAPP IT!
Council Sign Contract Interactive Game
The New Mexico Lottery and the New Mexico Coun- Idaho Lottery players will now be able to go to a place where every-
cil on Problem Gambling will work together to provide body knows their game and enjoy playing the lottery with their favor-
problem gambling rehabilitation services statewide. ite characters from the hit TV show, Cheers™. Thanks to collaboration
Under the terms of a four-year contract, the lottery between the Idaho Lottery, Alchemy3, and INTRALOT, Inc., a subsidi-
will pay the council a total of $70,000 to provide its ary of the INTRALOT group, the Cheers branded TAPP IT!™ interactive
gambling-specific crisis hotline. If lottery sales grow by touch screen game offers players a fun and exciting way to win prizes
4 percent during any one year of the four-year contract, instantly. This is the first time a brand has been applied to the TAPP
the lottery will pay the council an additional $1,000 a IT! technology.
year over the life of the contract. Available at select age-controlled Idaho Lottery retailers, Cheers
The council’s hotline – 1-800-572-1142 – is acces- can be played via the PLAY CENTER self-service machine. Each game
sible 24 hours a day from anywhere in New Mexico. costs $2 and gives players six chances to win up to $10,000. Bonus
Services are provided by trained personnel in English, Rounds offer additional chances to win prizes and free plays.
Spanish and Navajo. Callers may remain anonymous. “We are thrilled to offer lottery players a gaming experience like
“The lottery’s support enables the hotline staff never before,” said Jeffrey Schweig, Alchemy3’s President. “The digital
to provide problem gamblers and their families with Cheers game incorporates actual audio/visual clips from the show al-
free counseling and crisis intervention,” said Kandace lowing us to bring the brand to life and attract a new group of players.”
Blanchard, the council’s clinical director. “Access to “After a soft launch of TAPP IT! or ‘TAP Scratch’ as it is being mar-
these services is important and we are thankful for the keted to Idaho players, in Idaho last July, this game with its iconic brand
lottery’s commitment to be proactive on behalf of New is a great way to introduce the product line to new players,” said John
Mexico’s families.” Pittman, Vice President, Marketing of INTRALOT USA. “Cheers not only
The New Mexico Lottery has been working with the offers great prizes and odds, but the entertainment proposition em-
council since 1998. bodies the essence of our TAPP IT! library, which now offers over 100
“As a member of the gaming industry, we have an quick-play interactive games. We look forward to the game launch in
obligation to make counseling and intervention easy to Idaho as well as offering the game to our other partner lotteries.”
find by people who might have any type of gambling
problem,” said David Barden, New Mexico Lottery CEO.
The lottery publishes the crisis hotline number on
its Scratcher tickets and on other marketing and adver-
tising materials. Information about problem gambling
assistance is also posted to the lottery’s website at
www.nmlottery.com.
Welcome to the
NASPL Matrix
Visit the NASPL Matirx Now at:
NRI
www.nasplmatrix.org
Polaris and its vehicle body designs and names are registered trademarks of Polaris Industries Inc. used under license.
5
INSIGHTS May/june 2014
www.alchemy3.com
6 INSIGHTS May/June 2014
Photo caption: Paula Otto is congratulated by members of her Virginia Lottery crew
Paula Otto Honored by Public
Relations Society of America
jackpot runs and serving as national spokesperson.
As part of the presentation, chapter officials showed a video
highlighting Otto’s impact as a lottery professional, commu-
nicator and educator.
In her acceptance speech, Otto noted that her very first
public relations campaign was not exactly successful. She
Virginia Lottery Executive Director Paula Otto was honored was eight years old at the time, campaigning against her
with the 2014 Thomas Jefferson Award for Excellence in parent’s plan to move her to a different elementary school.
Public Relations by the Richmond chapter of the Public Re- The PR campaign included the use of a sandwich board to
lations Society of America (PRSA), the group’s highest honor. highlight her message. It didn’t work.
The award was as much for Otto’s two stints with the Lot- “I still had to switch schools,” said Otto with a chuckle.
tery, first as Public Affairs Director, and since 2008 as Execu-
tive Director, as for Otto’s other careers as a TV news anchor The ceremony ended with a $1,000 donation presented to
and as a professor of communications at Virginia Common- West Virginia University for the Vargo-Otto Student Scholar-
wealth University. During Otto’s tenure as executive direc- ship on Paula’s behalf. The scholarship was created in honor
tor, she’s taken on a high-profile role in the Lottery industry, and memory of her mother, Irene Vargo Otto, to help jour-
serving as lead director of Mega Millions during two historic nalism and strategic communications students.
INSIGHTS May/June 2014 7
GTECH is an advocate of socially responsible gaming. For more information visit gtech.com
Global Solutions, Custom Crafted
LOTTERY + SPIELO + INTERACTIVE + BETTING
All Together
8 INSIGHTS May/June 2014
Making a Difference: Special Edition
A LASTING
INFLUENCE
Tony Gumina was perhaps the ultimate idea man, and his
accomplishments in the lottery industry won’t soon be forgotten.
By Patricia McQueen
A
chance meeting almost 25 years ago you were his best friend. It was a great skill the Georgia Lottery in 2000. In addition to
forever changed the lottery industry. that he possessed.” licensed lottery tickets, Charles served as
Waiting to pitch different projects to Gumina was probably the first person to spokesman and voiced lottery theme songs.
the Ohio Lottery, Tony Gumina and Steve Saf- think about marrying the casino and lottery In 2002, he helped promote Powerball
erin met for the first time. Gumina was work- industries. He held various patents for poker through his appearance in numerous televi-
ing as a consultant for ticket printer Webcraft as lottery games, and it wasn’t long before sion and radio spots for a number of partici-
Games, and Saferin headed the up-and-com- he convinced Saferin and MDI to market pating Powerball states.
ing MDI Entertainment. Unsuccessful in their the games to lotteries. He worked for MDI Saferin thinks Gumina’s work with the
respective pitches, they still won the day, as for about three years, during which time singer was perhaps his greatest influence
their ensuing friendship and business part- the company was successful selling some of on the lottery industry. “I think Ray Charles
nership would endure until Gumina passed Gumina’s games, such as Jacks or Better, Bo- brought a certain credibility to lotteries, and
away at the end of April. nanza Bingo and Hold ‘Em Poker. When MDI that’s significant.”
“I’ve never met anyone like him and I decided licensed products were the future, Gumina’s friendship and business rela-
doubt I ever will meet anyone again in my life Gumina helped bring them in. The biggest tionship with Charles went far beyond the
quite like Tony,” said Saferin, now President, breakthrough was an agreement with Har- lottery industry. When the singer passed
Properties Group, and Chief Creative Officer ley-Davidson in 1996. “That really gave us in 2004, Gumina served as a pallbearer. He
for Scientific Games, which purchased MDI in some momentum to build MDI,” said Saferin. formed the Ray Charles Marketing Group to
2003. “They just broke the mold when they But Gumina was never a corporate man license the artist’s music and likeness for the
made him. He was an incredibly creative, en- (“a fish out of water” in that environment, next seven years as a way of raising mon-
ergetic human being. He had this knack, even according to Saferin), and he left MDI to ey for the Ray Charles Foundation. He also
if you just met him once, of making you think pursue opportunities on his own, continu- served as executive producer for the docu-
ing to partner mentary Ray Charles America.
Tony Gumina works with Ray Charles at a recording session in March 2000, where the singer
with the compa- His most recent achievement in a short
performed a theme song for the New Jersey Lottery (“For Every Dream, There’s a Jackpot”). ny from time to lifetime of achievements was the Pro Foot-
Photo by Patricia McQueen. time. He met Ray ball Hall of Fame Fan Fest, held in Cleveland
Charles in 1999, in early May.
and developed There’s no doubt that Gumina will be
a fast friendship missed, and that his influence on the lottery
with the legend- industry will be lasting. “Tony and I both
ary entertainer. made careers in the lottery business by think-
And true to his ing outside the box, and we did a lot of ‘gut
nature, he con- checks’ for each other when one of us came
vinced Charles up with one crazy idea or another,” said Saf-
to work with the erin. “He helped get lottery people to think
lottery industry. a little outside the box themselves – things
The first lottery that maybe they weren’t that comfortable in
to use the artist’s doing, he would make them feel much more
likeness on a lot- comfortable doing them. That was one of his
tery ticket was, gifts. I lost not only a very best friend, but
not surprisingly, also a valuable business associate.”
INSIGHTS May/June 2014 9
The Final Triumph
The weekend after Tony Gumina
passed, his last project came to life.
The Pro Football Hall of Fame Fan Fest
was held in Cleveland in early May, the
result of his passion for promotion. A
Cleveland native, he was hired in 2012
by entrepreneur Ray Park to help
bring major events to the I-X Center,
the country’s largest indoor conven-
tion center, with 1.4 million square
feet of exhibit space.
Some of Gumina’s other close party. He lived more in one short lifetime than
most of us would in three. But he was so much Gumina came up with the idea for
friends in the lottery industry more than that – a devoted father, loving hus- Fan Fest, which would be the larg-
also paid him tribute: band and loyal friend. Tony was at the beginning est gathering of pro football Hall-of-
of what we all now take for granted, licensed Famers outside of the organization’s
Arch Gleason, President and CEO of the games, celebrity partnerships and always, the headquarters in Canton, Ohio. Ter-
Kentucky Lottery Corp. next great idea to promote the lottery. ry Bradshaw, Jim Brown, Marshall
By definition, describing Tony Gumina in a Tony was instrumental in bringing Ray Faulk, Franco Harris, Joe Namath,
single paragraph is nearly impossible. Tony was Charles to the lottery industry. Ray performed Barry Sanders, Warren Sapp and Lynn
a great friend and valued business associate. at the New Jersey Lottery’s 30th anniversary Swann were among the 100 or so
Despite his fun-loving personality and humor- with a concert that included a student orches- football legends that were on hand,
ous tendencies, he treated all of our business tra. Tony brought Ray to New Jersey to sing a and more than a million square feet of
relationships in a highly professional manner. most poignant rendition of “America the Beau- convention center space was dedicat-
Tony was extraordinarily energetic, creative tiful” directly across the river from the still smol- ed to various football exhibits.
and thorough, and regularly delivered on virtu- dering twin towers just after 9/11. He didn’t live
ally every promise he made. His disarming ap- to see his most recent collaboration – the Pro The event went beyond football be-
proach and personality allowed him to commu- Football Hall of Fame event in Cleveland. It was cause Gumina used his lottery con-
nicate well with CEOs and everyone with whom spectacular; he would have loved it. nections to join the event with a Pow-
he worked. Tony truly lived life in the moment, His candle burned brightly and when it erball second chance promotion. On
but to the fullest. He literally lit up every room went out, the world got a little dimmer. RIP, May 2, winners from around the coun-
he entered and greeted everyone he met with Tony. But really, can’t you just see him now – try descended on Cleveland to par-
the same flare and panache. Tony was truly one gathering the saints and sinners for the world’s ticipate in an exclusive special event
of a kind, and I will greatly miss him. biggest promotion, and looking up all the peo- “tailgate party” before the Fan Fest
ple who went before him to ask the questions was opened to the public the next day.
he always wanted answers to?
Rebecca Paul Hargrove, President and CEO
of the Tennessee Education Lottery Corp. “All the Hall-of-Famers came off a 737
Tony never took no for an answer, which Chuck Strutt, Executive Director, that we had brought into the I-X Cen-
brought many of us new and innovative ways ter and were introduced by the Mas-
Multi-State Lottery Association
to promote our games and raise more for good ter of Ceremonies Larry King,” said
Tony Gumina was an inspiration, both pro-
causes! In terms of his impact on the industry, Steve Saferin, Chief Creative Officer
fessionally and personally. To meet Tony was
he was the first I believe to bring an interna- for Scientific Games and President of
to become his friend, and every friend has the
tional star (Ray Charles) to a multi-jurisdictional its Properties Group. “The event was
same story. Every friend, at some point, comes
group to allow some smaller and medium size very much in Tony’s vision – a huge
to realize that their short list of best life mo-
states to afford that quality. His patent on event.”
ments includes at least one with Tony. He was
Hold’em Poker was one of the first cross ties to a completely self-educated man with a natural
the casino world. And while it was sad that Gumina did
gift for promotion. If Tony got a “no,” it only told
Just as Tony lit up every room he en- not live to see that vision fulfilled, Saf-
him that he needed to try harder. If you said
tered, his spirit [now] illuminates the heavens. erin noted that it perhaps made it eas-
“no” to a Tony promotional idea, it meant that
His smile, his laugh, his indomitable spirit will ier to honor the man. “As sad as it was,
you were probably wrong.
brighten our lives forever! it kind of took the awkwardness out
One rule that Tony followed is worth re-
of it. As his daughter Georgeann told
membering – gaining a new customer is import-
me, he may only have been 56, but
Carole Hedinger, Executive Director of the ant, but keeping an old customer is the number
he lived enough for three lifetimes.
New Jersey Lottery one priority. To gain a new customer means
There’s a lot of truth to that. He lived a
Tony Gumina was a force of nature. He had you are a successful salesman. To keep an old
very full life. And he’ll be missed by his
more energy and zest for life than anyone I’ve customer means that you are a trusted human
friends and his business associates.”
ever known. When Tony was around, it was a being.
10 INSIGHTS May/June 2014
No, really – I’m on your side.
Stephen Wade, Research and Development Manager, Washington’s
Lottery and Principal, Lottery Management Consulting, LLC
I took on a gig as a consultant re- “Oh, I’ve been doing modeling Introductions were made all
cently, from which I am still learning since I was in graduate school. I’ve found around, and I avoided for the moment
things. it to be a really useful skill- a great way being exposed as a poseur rather than
The engagement involved meeting to get things out in the open.” a model.
with the advertising agency serving a The younger people in the room Up to this point, I realized, my hosts
lottery. The purpose of the first meet- seemed to pause and give us their full thought that my remark about modeling
ing was (I thought) to review with them attention. Their leader seemed to find had been just small talk meant to show
how we were going to measure their more meaning in my remark than I re- an appreciation of their own past ac-
progress toward goals that had already membered putting there. complishments. I wanted to keep that
been agreed upon. The “how” involved Jade smiled brightly as she said, completely undeserved positive halo.
mathematical modeling. “You probably know, then, that some of I hoped that if I just avoided using the
I had no idea of the fun in store as us have done modeling too.” words “model” and “modeling,” my
I rode the elevator up to their stylish of- This made me feel quite awkward, opening remark would be forgotten, as
fice suite. because in fact I did not know of their small talk often is. Still, I needed to ex-
I was shown to a meeting room work. Those of us who labor in arcane plain my role in the work we were going
with a grand view out over the city, fields know that we will never be fa- to be doing. I drew my Lottery contact
where six people were already loosely mous, but we do appreciate being rec- aside and said: “When it comes to my
assembled. “And here’s Dr. Wade” was ognized by the handful of people who part, let’s just say I will help with mea-
the introduction. share our interests. I hate to disappoint surements – I’ll take it from there.”
A tall, elegant woman glided to- a peer in this way. This turned out well, as I will tell.
ward me, gave me her hand, and spoke “I confess I don’t know your work We all avoided embarrassment, and I
her name: “Veronique.” By the way oth- as well as I would like to,” I said. “Which explained what I meant to do for them,
ers oriented to her, I gathered that she should I look at first?” without resorting to technical jargon. To
was the leader. The others gave their Often we have some publication my surprise, we soon explored the emo-
names in quick succession. A young we can point to that makes us feel good tional part of the deal – often of prime
woman called Jade bounced over to join about our craft, and it is perfectly ac- importance to the advertising agency,
us. ceptable and nothing like bragging to and not usually the first place I go.
“We are expecting the Lottery peo- point it out. Veronique hesitated. Actually it turned out to be quite a
ple any moment,” said Veronique. “They Jade picked up the thread. “Vero- while before I got to do that. My Lottery
were held up in traffic. So tell us, Dr. nique was dreamy in the 1985 Victoria’s contact, Andrew, opened the meeting
Wade- what is your background?” Secret catalogues,” she said. “I’m sure I by framing the need to measure the
Now, I have found that it is a good can find a few frames from that.” effectiveness of the Lottery’s marketing
for me to briefly explain, early on, that Veronique returned the admira- efforts. State agencies in general, not
my Ph.D. is in biology, and that most of tion graciously. “Jade has a style that is just the Lottery, were being required to
my work has been in working out ways sportier,” she said. “I really admire what show how they used data to drive their
to measure things. That way, people can they have done with Title Nine. But you major decisions, control costs, and get
think of me as a measurement special- must have quite a niche if you have been the most service out of the dollars they
ist. In this loose assembly, though, and modeling since graduate school?” spend. Performance measures were
since the Lottery people might be a I was about to utterly fail this test being defined left and right. The bigger
while arriving, I took a more expansive of poise when I was saved by the arrival the expenditure, the more urgently the
approach. of the Lottery contingent. need to have a measure of its perfor-INSIGHTS September/October 2013 11
12 INSIGHTS May/June 2014
mance was felt. have Dr. Wade explain what he does.” and to make precise predictions. You
“All this,” said Andrew, “is just back- On cue, I said, “What I do is all know why? Because it’s easier to dis-
ground to today’s meeting. Next to what about using the past history of sales to prove a precise prediction, than a vague
we pay out as prizes, the Lottery’s adver- predict the future.” prediction. “
tising budget is one of the biggest items Jade, still warm and perhaps more “And by precise, you mean what
on our financial statement. We need to willing to engage with me given our exactly?”
show that we can measure what we are shared background, spoke up: “Usually I mean that I can put some
getting for this effort. I realize this is go- “But isn’t that flawed from the be- tight boundaries around the status quo.
ing to be tough, but we have no choice ginning? Don’t we want the future to be The tighter ‘no change’ is defined, the
about doing it.” something different from the past?” easier it is to see something as ‘change.’
Jade was moved to respond: “It Here I felt that I needed to cool That way if something different is going
sounds as though these people have no things down, so I spoke slowly. “Maybe on, we can recognize it.”
understanding of marketing. I suppose we should agree on some terms before I “So we want you to be precise, so
the state can measure how wide and talk about what I do. You and the Lottery we can contradict you?” Jade seemed to
smooth the roads are, and call that a no doubt have goals. I generally won’t be getting it.
performance measure for their spend- be talking about goals. I may talk about “Yes! And you’re going to be happy
ing on concrete and tar. But do they predictions or expectations. My predic- to prove my prediction wrong. And if it
think they can measure how people feel tions don’t have big aspirations in them. feels to you like I’m the opposing team
about the Lottery? What are they going They just reflect things staying the same, –that’s OK. That’s why I’m the outside
to do, run a survey?” neither better nor worse. I want to pre- consultant here.”
There was a general sort of move- dict the future, and I want to predict it I softened this with a big smile.
ment in the room as people shifted precisely, and I want to be wrong.” Actually, it seems to be the most
in their seats and exchanged knowing “You want to be wrong?” natural thing in the world for people
looks. “My wrong prediction is evidence to feel toward me, in this role, as they
“Well you know,” said Andrew, “we for your positive accomplishment. feel toward a parent who is stingy with
have been running a survey. And we We’re on the same team here. I predict praise. I tell myself it’s the role. It arises
have been asking people how they feel.” how it would look with no change. You this way because of the nature of what
“Right! It’s like, On a scale of 1 to make a change, and disprove my predic- we know and how we test things, not
5, from Hate It, to Love It, how do you tion. We win.” because I have a negative attitude. Still,
feel about the Lottery? How sensitive “And what if we can’t disprove your because this is a role that I have taken
can that be? And how real is it, anyway? prediction?” on, I pass up some opportunities for
We try to influence people so they feel a “Then I tend to think that nothing warmer feelings. Actors who portray
little warmer and play a little more. But big has changed.” villains must have a similar experience.
is that going to move someone from a 4 Here is where I would usually hope So here we were: barely twenty
to a 5? I’ll bet we could move people to to have a thorough and leisurely discus- minutes into the meeting, and already
spend enough to cover the cost of our sion of the concepts of precision, statis- feeling a little dramatic tension about
contract, without ever making a dent in tical power, and so forth, but Jade went what I proposed to do. My unearned
that fivepoint scale.” right to what has turned out to be the positive halo as an appreciator (or
“It is true that those measure- crux of the matter. more!) of fashion modeling was dim-
ments- there are a few of them – are “It doesn’t feel like we’re on the ming. I was grateful when Veronique
pretty stable. We have not noticed them same side if I’m trying to disprove your moved the conversation into territory
shifting one way or another as sales go prediction, and you’re trying to say we that felt safer to me by asking:
up or down.” haven’t done anything.” “And how do you go about making
Jade was warming to her argument. Now there is no denying the emo- these precise predictions?”
“Really! You would think that what peo- tional truth of this statement. Often I will try to recount, in my next lit-
ple spend would be a pretty good mea- enough, I have been in the position of tle article, how I answered Veronique’s
surement of how they feel. I mean, if the saying that the nice results we are cur- question without using the M- (model)
jackpots weren’t changing all the time. rently seeing are just about what we word.
I mean, wouldn’t you think that if I felt would expect under status quo ante.
a little better about the Lottery than This is hard for people to hear, and it’s
usual, I might play a little more often, or hard to say (even if you avoid the Latin
spend a little more? Maybe they ought and just say, “the way things were earli- Stephen Wade
to base a measurement on that!” er”). It would be more felicitous to put Research and Development
Andrew glanced at Veronique. Ve- on a positive spin at every opportunity. I Manager, Washington’s Lottery
ronique said, “Thank you, Jade! That try not to spin.
does pretty well set the stage for what “I hope,” I said, “that you’re going and Principal, Lottery Management
we are doing today. Perhaps we should to cheer for me to be good in my craft, Consulting, LLCINSIGHTS January/February 2014 13
14 INSIGHTS May/June 2014
R
C EATE REALITY
don’t report on it.
By Jan Kessinger, HKC, Inc.
Now is the time when many lotteries are completing their 2014-15
strategic plans. Budgets are being finalized and reports made to the
jurisdictions. There is lots of attention to game introduction, game
changes, marketing and cutting costs. The FY 2014 review will talk of
challenges with weather and economic factors. Credit will be given to the
numerous big jackpots lotteries enjoyed with Powerball and MegaMillions.INSIGHTS May/June 2014 15
The key factor in driving sales that most I hear a parroting of the company line: sidered. They included academics, teach-
likely will not be mentioned is the sales “Six percent” or whatever the overall er recommendations, cheering ability,
staff. goal is. That doesn’t reflect the realistic dance, and poise. She told me that she
goal for any territory, it is the goal for the felt she had strengths in cheering ability,
There is no factor that can have a bigger lottery. To achieve the lottery goal, each but was rusty with dance, and was sur-
impact on retail sales of lottery than the territory must achieve its potential. That prised that she became nervous when
lottery sales representative. It is the sales may be 20 percent in one territory and called upon to perform in front of the
rep who makes the marketing and game holding even in another. Realistic goals crowd of judges.
design successful. The best marketing help reps feel as if they actually do con-
plan that is not executed in the field by tribute to the achievement of the over- She also acknowledged that conflicts
the sales team will fail. Yet, a bad market- all state goal. Blanket goals homogenize with teachers early in the school year,
ing plan that is executed well in the field all efforts and take away any individual and less than stellar academics worked
will bear fruit. sense of achievement. against her. Rather than give up, she was
working on a plan to overcome those
In your plans, have you addressed the Sales reps should now be assessing the weaknesses.
field sales team? Is there a strategy for situations affecting lottery sales in their
the sales team to put to work? Are there areas of responsibility and setting new She said she wanted to improve her per-
targets for the sales team to shoot for? goals and plans to achieve success in the formance ability, and said her first step
new fiscal year. They should take a look is to contact her old dance teacher and
A successful strategic plan will have the at areas where their performance can be to sign up for dance lessons, and to be
sales and marketing teams working in improved, and areas that are particularly in three performances by next April. She
tandem. They work in tandem with a fo- strong. told me this would improve her dance
cus on four key elements to driving rev- ability, and rid herself of the anxiety of
enue: I have shared the story of my youngest performing in front of a crowd. She has
daughter and her quest to make the already turned her grades around, and
• Increasing the number of lottery cheerleading squad. It bears repeating has been working on improving working
players her: relationships with her teachers.
• Increasing the frequency of
current players I have three daughters, and the oldest She is working on short-term goals that
• Increasing the average price two were cheerleaders throughout high she will post in her room, and on the
per lottery game played school. In fact, I used to joke that we refrigerator. She also asked her siblings,
• Increasing the average number did not solemnly ask a blessing before a her mother, and me to write her a letter
of games per purchase by players meal, but cheered the blessing instead. to be opened next April, a month prior to
tryouts. She asked us to write a letter re-
Like politics, all strategic sales planning When my youngest daughter tried out minding her of what she needs to focus
is “local.” When you accept that, you for freshman cheerleader she had a re- on, and to bolster her confidence.
accept that strategic planning needs to ality check. She did not make the squad
take place in the field. If strategic plan- during tryouts. She had been captain of My daughter not only developed her
ning is effective for headquarters, it can her middle school squad and busied her- own goals, but also enlisted the support
be even more so in the field. Sales peo- self for the month prior to tryouts with and criticism of “management” and her
ple are on the front lines for the lottery videotapes and lots of other activities. peers to keep pushing her toward a writ-
and do more to drive sales at retail than When tryouts came, she opted out of the ten and shared goal.
any other dimension of the lottery. More mock tryout, citing exhaustion. She had
than marketing campaigns, more than been busy, busy, busy doing the wrong She did not accept a reality of not be-
new games and more than anything things. On tryout day, she was caught off- ing a cheerleader, she changed reality
done at headquarters. It is the retailer guard by a few things, and did not make by assessing the situation and doing the
who drives sales, and it is the field sales the squad. things to achieve her goals. She did not
team who most influences how retailers lower her goals to match her perfor-
push lottery. I came home from a business trip and mance, she raised her performance to
expected her to be depressed about not achieve her goals.
As such, it makes sense to have the lot- making her goal to be a freshman high
tery sales team create strategic plans to school cheerleader. I was wrong. Rather The same concepts can be applied in the
contribute to the overall lottery revenue than being depressed, she already was work-world. Maybe some of your sales
goals. Too often, strategic plans are made deep into a situation analysis of why she people did not make sales goal this year.
at headquarters level, but not in the field had not achieved her goal, and assessing Maybe the reps did not place as many
where the battle for retail space and what it would take to achieve her goal dispensers on the counter as you would
sales is fought everyday. I laugh when I next year. have liked. Maybe the sales people had
ask in a sales workshop what the sales a great year, and they are concerned
goals are for reps. More often than not, She rattled off the areas the judges con- about repeating that success next year.16 INSIGHTS May/June 2014
The secret to making next year a success toys, not food, to attract young custom- Plans should also incorporate a bench-
is having goals, and a plan to achieve ers. Mom and Pops’ with their entre- mark of the impact of specific jackpots
those goals. Each territory and sales per- preneurial spirit sell their stores, or are on sales, and the impact of competing
son is unique and should have their own forced out by chains, that bring in their large jackpot games if the territory is
unique plan. impersonal, data-driven styles. Drug near a state/provincial border. That way,
stores have become convenience gro- the sales person can develop tactics to
People on the front lines need to know cery stores, challenging the most profit- implement when jackpots hit certain
where they fit into the overall plan, and able segment of the convenience and gas “trigger” points.
have a plan to contribute. If you are business.
heading into a new fiscal year, this is We have found that while jackpots grow
definitely a time to set new goals, and to Just to complicate matters, consider that and sales grow with them, sales actually
develop a month-by-month plan. lotteries have lost their “gaming” mo- fall for comparable jackpots. This points
nopolies to casinos and boats, and the out that more sales and promotion ef-
We are operating in a dynamic business luster of generating revenue through forts need to be made at retail during
environment that is ever-changing. Suc- lotteries is not as bright as it once was. growing jackpots. Too often, we rest on
cessful companies react to the changing Online gaming is the talk of tomorrow, the hope/knowledge that big jackpots
marketplace by changing strategies and yet as lotteries struggle to adjust to the drive sales.
tactics. Laggards accept what happens changing marketplace, legislators and
and make a list of excuses. vocal public interest groups are ques- The alternative is to once again change
tioning the value of lotteries. the matrix to ratchet up the jackpots to
Sales people should look at their territo- attract the same sales that were once
ries and consider the changing shopping The marketplace is changing, and only achieved with a lower jackpot. A strate-
habits of players. Look at the business the companies that are creative and will- gy executed by sales people to build jack-
trends of retailers. Study the demo- ing to change with the market will thrive. pot sales at retail will offset the need to
graphics of the territory and determine The future is not what it once was. change the matrix of the games. That’s
where there are opportunities, and what part of effective strategic planning. Or,
threats can hurt lottery business. Lotteries must look at territorial sales we must ask ourselves in the year 2020,
performance and examine data to find “Is a billion dollar jackpot enough?”
Each rep should then create goals and a where losses are coming and where
plan that builds on strengths, makes the gains can be made. One of the jurisdic- The key to a successful situation analysis
weaknesses irrelevant, seizes the oppor- tions I work with found that 64 percent is research and measurement. The first
tunities and inoculates a territory against of the lottery’s sales losses came from step of a plan must be to measure factors
threats to lottery sales in the territory. convenience stores. Nearly half of the impacting sales performance. From that
This process allows each sales person to loss came from five chains in only 47 zip point, the sales person can then measure
create reality instead of reporting on the codes. This points up two needs. One is progress to goals. If sales person cannot
things that happened to affect sales. to have a more prominent presence with measure performance, the sales person
chain accounts. The other is to determine cannot manage performance.
Selling lottery is neither as easy, nor as through a situation analysis why the loss-
predictable, as it once was. es occurred in the specific zip codes and A strategic plan should be done in re-
the business class. The data, if analyzed, sponse to a situation analysis, and
Lotteries face tremendous challenges will be a blueprint for the strategic plan. have concrete action steps to build on
as the traditional marketplace changes. Data without analysis is meaningless. strengths, make weaknesses irrelevant,
Gas stations have become convenience seize every opportunity and be prepared
grocery stores and offer little or no au- As business becomes driven by chains, with alternative action plans if threats
tomotive service. Meanwhile, people all sales people must become more ac- become reality. And finally, a budget
seeking auto service go to convenience tively involved with chain accounts, not should not dictate the plan, rather the
auto locations for 10 minute oil changes. only at the store level, but work in close budget should be dictated by the plan.
Motorists seeking the lowest price gaso- partnership with lottery key account
line find themselves pumping gas at Wal- management in executing chain account A strategic sales plan not only builds
Marts and large supermarkets where the strategies at the store and district level. sales performance, but makes the job of
gas is sold at very low margins in an ef- Too often, chain store sales are consid- the sales person more fun and fulfilling.
fort to draw traffic to the megastore. ered to be “uncontrollable,” where the
field sales person feels nothing can be
Convenience stores that once used gas done at store level. That is just wrong…
as a lure now use fast food for the same but common. Every store, whether inde- Jan Kessinger
purpose. Subways, Dunkin Donuts, Burg- pendent or a chain is demanding more HKC, Inc.
er Kings and yogurt shops flourish inside analysis of the market and of opportuni- 913-338-3937
convenience stores. McDonald’s uses ties to maximize sales and profits. HKCINC@aol.comINSIGHTS May/June 2014 17
18 INSIGHTS May/June 2014
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20 INSIGHTS May/June 2014
Upping The Ante In
Responsible Gaming
Begun as a project by the North Carolina Education
Lottery, two responsible gaming training videos are
now available to lotteries across North America
through NASPL’s partnership in their development.
By Patricia McQueen
Lotteries have long been at the forefront of sup- The WLA certification is important to North Car-
porting and funding responsible gaming programs olina. “From my perspective, it is a tangible indi-
– either through legislative mandate or from a cation of how seriously we take responsible gam-
strong desire as government entities to minimize ing,” explained Garland. “Having that certification
harm to the small minority of consumers with by a third party shows that there’s a real commit-
gambling problems, or both. This year, those ef- ment to action.”
forts have risen to a new level with the release
of two important responsible gaming training vid- As the lottery worked through its Level Three
eos. One video was created for lottery employees certification application, officials realized im-
and the other for retailers. provements were needed in the areas of both
employee and retailer training, and the idea for
The videos were originally conceived by the North the videos was born. It didn’t take long before
Carolina Education Lottery (NCEL) as part of its ef- the project morphed beyond North Carolina’s
fort to obtain Level Three certification under the borders. Last fall, the NASPL Executive Commit-
World Lottery Association’s Responsible Gaming tee recommended that NASPL become involved,
Framework. The Lottery had already reached Lev- and NASPL’s Executive Board approved funding
el Two; the WLA’s four levels of achievement re- the two video projects to make them available to
flect how successfully a lottery has implemented all NASPL members as a responsible gaming tool.
the responsible gaming principles into its day-to- The organization also brought in the National
day operations. Council on Problem Gambling as a partner to help
with the videos, both financially and for consulta-
“We take responsible gaming very seriously here tion, research and resource advice.
in North Carolina, and we have from day one”
said Alice Garland, NCEL’s Executive Director. “Our “This became a NASPL project as opposed to
core values are integrity, respect, honesty and a North Carolina project because we wanted
trust, and we believe those are great core values to offer the videos to states wanting to provide
for responsible gaming programs as well, because training both to their employees and to retailers
we need to balance our mission of raising money in the area of responsible gambling awareness,”
for education with taking care of our players.” explained Stephen Martino, Director of the Mary-INSIGHTS May/June 2014 21
LOTTERY EMPLOYEE TRAINING VIDEO - nasplmatrix.org/rg/resources.php
land Lottery and chairman of NASPL’s Responsible Gaming term as President of the National Council really facilitated a
Committee. lot more communications between all the stakeholders, and
that Stephen Martino has been a driving force in much of the
The training videos were delivered to all NASPL members at recent progress.
the end of April. At each lottery’s discretion, they can be used
as is or with an added introduction and/or conclusion. Sample “The videos became a way that we could look at some good
scripts for these extras were also provided to assist lotteries in practices and put them in a format that everybody could use,”
customizing their videos. Whyte added. He noted that a survey by the NASPL Responsi-
ble Gaming Committee last year indicated that lotteries didn’t
Martino is quite pleased with the results. “There were a lot of want to reinvent the wheel, that they wanted to learn what
different eyes in the industry on this,” he added. “I feel com- other lotteries were doing, and that they wanted something
fortable because it wasn’t just one person developing them that could be customized for their own situations. “The vid-
for one lottery; rather, we took a broad approach to make eos address a definite need based on the survey.”
sure that there was general applicability of the videos to all
lotteries.”
Creating the Videos
Garland is also thrilled with the results. “For North Carolina,
these videos absolutely met our vision. I am extremely excit- It was need that got North Carolina started on the path in the
ed that the project grew the way it did, and it’s something first place. As NCEL officials worked towards the WLA certifi-
that’s usable by every lottery,” said Garland. “It’s helpful for cation, “we realized that the sky’s the limit in terms of what
us, as an industry, to say we are addressing this issue as an could be done in the area of responsible gaming,” said Jaime
industry.” King Fuquay, NCEL’s Director of Government Affairs. However,
the videos became a priority, because “we felt they were the
“We’re pretty excited about the videos and think it’s a massive best way to reach out to our employees and our retailers.”
step forward for the lottery industry,” said Keith Whyte, Exec-
utive Director of the National Council on Problem Gambling. North Carolina secured a contract with an outside consultant
“In fact, over the past several years, our engagement with the to help produce the videos – Marlene Warner, Executive Di-
lottery industry in general has really increased, driven by ac- rector of the Massachusetts Council on Compulsive Gambling,
tive engagement on both sides.” He noted that Don Feeney’s whose work in face-to-face training was known throughout22 INSIGHTS May/June 2014
LOTTERY EMPLOYEE TRAINING VIDEO - nasplmatrix.org/rg/resources.php
the industry. She was also hired for in-person training sessions anywhere, from the situations to the settings.”
in North Carolina, and the employee training video was used
in those sessions as well. The primary goals of the videos are to help employees and
retailers recognize the signs of a potential problem gambler,
In creating the videos, Warner drew upon her training expe- and to provide them with information and resources they can
rience for the Massachusetts Lottery, and the experiences of pass along to those individuals. “We don’t expect you to be
employees there and at the NCEL helped guide the develop- a counselor, or to be uncomfortable in the situation, but we
ment. “Those employees were really crucial in terms of get- want our employees and our retailers to know the resources
ting it authentic and getting it right,” said Warner. “Everyone that are available,” said Fuquay.
who has seen the videos has said they are spot-on, that those
are circumstances and scenarios that we deal with all the Along with the videos, NASPL has made available pre- and
time.” post-training surveys to test employee knowledge. Fuquay
noted it was a little disheartening to see how little most NCEL
When the project expanded from North Carolina to nation- employees knew about responsible gaming and the programs
al, involving a number of other people, Fuquay was afraid it available. “I’m so glad we are doing this – there’s so much to
might have a few more bumps in the road than otherwise ex- share with our employees.”
pected in such an undertaking. In addition to the involvement
of Warner and the NCEL representatives, the project included The employee training video contains a lot of general infor-
the Minnesota Lottery’s Don Feeney, Chip Polston from the mation about responsible gaming, and includes three differ-
Kentucky Lottery, Stephen Martino, Keith Whyte and others ent scenarios that lottery employees might face. One features
from the NASPL Responsible Gaming Committee. But with a a player at retail showing signs of a gambling problem; anoth-
tight deadline, “it ended up working really smoothly. Every- er has a lottery employee handling a phone call from a wom-
one kept on target and on time, worked well together and an whose spouse is in trouble; and the third is a lottery claims
respected opinions,” said Fuquay. representative dealing with an angry player.
The videos were filmed in Massachusetts, and the crew When this video was shown to NCEL employees in March,
worked hard to ensure that the locations were as generic as they gave it rave reviews. “Our employees could identify with
possible, applicable to any lottery anywhere. “That was a bit the realistic situations presented, and that promoted conver-
of a challenge,” said Fuquay, “but I think they did a great job sations and sharing among them,” said Fuquay. “They liked
with it. We really needed to make it appealing to any lottery it because they know that there are some players that haveINSIGHTS May/June 2014 23
LOTTERY RETAILER TRAINING VIDEO - nasplmatrix.org/rg/resources.php
problems, but they didn’t really know how to address it,” add- become more loyal customers,” she said.
ed Garland. “It felt like we had enabled them with some ways
to deal with situations.”
More to Come
The retail training video is much shorter than the employee
training video, and features one scenario about a situation Martino hopes that every lottery will find a way to use both
with a player in a retail environment. videos and give them the attention they deserve. He’s also
excited about other responsible gaming initiatives that are in
At this writing, North Carolina was still working out a plan the works.
for its retailer training video. The idea was to include it in the
standard training for new retailers, and to require store own- One is the development of a NASPL responsible gaming certi-
ers and managers to view the video before renewing their lot- fication and verification process, modeled after the successful
tery licenses. They may end up offering an incentive of some WLA program. He hopes to present that program at the June
sort, particularly if management has its employees also watch Director’s meeting in New Hampshire.
the video. With high turnover, that is the biggest challenge.
The other project he hopes to be up and running later this
“At least the retail owners and managers will know that this is year is the Responsible Gaming Toolkit. It will be a collection
a priority for the lottery, so hopefully they will ask their em- of best practices from NASPL member lotteries, first gathered
ployees to watch this as well,” said Fuquay. Whyte also em- through the responsible gaming survey done last year. “There
phasized the importance of getting retailers on board. “The really wasn’t a baseline of information for what all the differ-
retailer aspect of responsible gaming is a crucial one to ad- ent lotteries were doing,” said Martino. “I was really cheered
dress,” he said. “Retailers are directly engaged with your cus- by the results of that survey, because if you thought there
tomers; they are the ones selling your product.” wasn’t much going on, you would have been very wrong.”
He did acknowledge that the industry hasn’t done a good job
Garland agreed that the biggest challenge is to get the retail- in spreading the word about all those good ideas, and that’s
ers on board, and to be comfortable with the idea that the lot- what the Toolkit will do.
tery doesn’t need sales from problem gamblers in order to be
successful. And learning how to address situations that may It will be housed on the NASPL Matrix website. “We’ll put it
arise is actually a positive for retailers. “I think that if custom- up there with the notion that lotteries can freely borrow the
ers believe that retailers are looking out for them, then they’ll good ideas others are already using.”You can also read
