Massachusetts State Lottery Commission

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Massachusetts State Lottery Commission
                         Official Minutes of 05/31/2022 Meeting

                 Massachusetts State Lottery Commission
                            150 Mount Vernon Street, Suite 300
                             Dorchester, Massachusetts 02125
                                       Tel: (781) 849-5555
                                      Fax: (781) 849-5546
                                      TTY: (781) 849-5678

                               Official Meeting Minutes

DATE:                    Tuesday, May 31, 2022

TIME:                    10:30 a.m.

        All Attendees Participated Remotely through Cisco Webex Conferencing System

MEMBERS PRESENT:         Deborah Goldberg, Treasurer and Receiver General
                         William J. McNamara, Comptroller
                         Meghan Liddy, Commissioner
                         Arielle Mullaney, Assistant General Counsel, Executive Office of Public
                         Safety and Security, designee of Secretary Terrence Reidy

ALSO PRESENT:            Mark William Bracken, Interim Executive Director, Lottery
                         Edward Farley, Chief Marketing Officer, Lottery
                         David Falcone, Chief Operating Officer, Lottery
                         Gregory Polin, Assistant Executive Director and General Counsel, Lottery
                         Didier Bertola, Assistant Executive Director, Chief Financial Officer,
                         Lottery
                         Thomas Cream, Assistant Executive Director of IT, Lottery
                         Matthew DiFrancesco, Assistant Executive Director, Operations, Lottery
                         Christian Teja, Assistant Executive Director, Communications, Lottery
                         Thomas Aiello, Manager, Product and Promotional Development, Instant
                         Tickets, Lottery
                         Julie Goggin, HR/Legal Assistant, Lottery
                         Juan Di Prado, Assistant Director/Social Media and Communications,
                         Lottery
                         Sheila Capone-Wulsin, Stakeholder Engagement, Lottery
                         Michael Lanava, Regional Manager Springfield/Worcester, Lottery
                         Patty Lyons, Customer Service Manager, Lottery
                         Lauren Luttrell, Marketing Consultant, Lottery
                         Jamie Martel, Marketing Specialist, Draw Games, Lottery
                         Judy Moore, Senior Executive Assistant, Lottery
                         Delwin Dickinson, Assistant Executive Director, Modernization, Innovation
                         and Performance, Lottery
                         P.J. Vande Rydt, Regional Manager Braintree, Lottery
                         Shane Taylor, Manager, Product and Promotional Development Draw
                         Games, Marketing, Lottery
                         Thomas Dougherty, Regional Manager, Lawrence, Lottery
                         Steven Martins, Regional Manager, New Bedford, Lottery

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                            Official Minutes of 05/31/2022 Meeting

                             James MacDonald, First Deputy Treasurer, Treasury
                             Chandra Bork, Chief of Staff, Treasury
                             Lizandra Gomes, Deputy Chief of Staff, Treasury
                             Carla Kath, Director of Communications, Treasury
                             John Durgin, Associate General Counsel, Treasury
                             Emily Kowtoniuk, Deputy Legislative Director, Treasury
                             Steve Moore, Deputy Legislative Director, Treasury
                             Andrew Napolitano, Deputy Communications Director, Treasury

                             Jeffrey Shapiro, Esquire, First Deputy Comptroller

                             Lawrence O’Toole, Creative Director, FullContact
                             Renée Rochon, Account Director, FullContact
                             Francesca Prach, Account Supervisor, FullContact
                             Alexa Cavallo, Associate Media Director, Norbella

                             Peter Woodford, Senior Project Manager, Division of Capital Asset
                             Management and Maintenance (DCAMM)
                             Katie Keefe, Project Manager, Division of Capital Asset Management and
                             Maintenance (DCAMM)

                             Colin Young, State House News Service
                             Rayne Mahfood, Interested Member of the Public

I.       Opening of Meeting

        Treasurer Deborah Goldberg opened the Massachusetts State Lottery Commission
     (“Commission”) meeting at 10:32 a.m.

         Treasurer Goldberg made the following statement:

         “Pursuant to the Commonwealth’s Open Meeting Law, Massachusetts General Laws, Chapter
     30A, section 20, as Chair of the Massachusetts State Lottery Commission, I would like to advise that
     any person may make a video or audio recording of this open meeting.

         However, I am obligated to inform attendees of any recording at the beginning of the meeting, so
     I ask that those who are making any recording identify themselves now as doing so.”

          Judy Moore, Senior Executive Assistant, Lottery, identified herself as making a recording to
     assist in the preparation of the meeting minutes. Colin Young, State House News Service, also stated
     that he would be making such a recording today.

         Treasurer Goldberg then stated:

         “Pursuant to the Massachusetts Open Meeting Law, Massachusetts General Laws, Chapter 30A,
     section 20, all of the Commissioners

                 •   Comptroller William J. McNamara,
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                   •   Commissioner Meghan Liddy
                   •   Assistant General Counsel Arielle Mullaney, and
                   •   Myself, Treasurer Deborah Goldberg

            will be participating remotely for this meeting because physical attendance is unreasonably
       difficult and pursuant to Chapter 22 of the Acts of 2022.

            Commissioners, we are all participating by a conference call. Please let us know if you have any
       sort of technical difficulty.

           The Commissioners may participate in any votes scheduled to take place at today’s meeting.

           All votes must be taken by roll call.”

          Treasurer Goldberg reminded the attendees that at the end of the open session, there will be a
       motion and the Commissioners will then move into an executive session.

II.        Approval of the Minutes from April 26, 2022

           Treasurer Goldberg asked the Commission to accept the minutes from the meeting held on April
       26, 2022.

          Comptroller William McNamara made a motion to accept the minutes of the meeting and
       Assistant General Counsel Arielle Mullaney seconded the motion.

           Treasurer Goldberg, recognizing there was no further discussion, moved the motion to a roll call
       vote. Comptroller William McNamara: yes; Commissioner Meghan Liddy: yes; Assistant General
       Counsel Arielle Mullaney: yes; and Treasurer Goldberg: yes. The Motion carried.

           The amended minutes were approved at 10:34 a.m.

III.       Executive Director’s Report

           Lottery Sales Update – April

           Interim Executive Director Mark William Bracken updated the Commission on Lottery figures
       for April 2022. He reported that the overall unadjusted sales for April 2022 were down $25.9 million
       as compared to April 2021. Estimated April 2022 net profit and prize payout figures do not include
       accruals for prizes won that have not yet been paid.

            Due to a combination of a $25.9 million decrease in sales for the month, and a $9.8 million multi-
       state prize settlement for Mega Millions and Powerball that was processed in April, the estimated net
       profit for April 2022 was $85.8 million as compared to $134.7 million in April 2021. After adding a
       7-day average net profit figure of $21.5 million due to a shift in the calendar that resulted in 7 fewer
       days being included in the net profit figure for April 2022, the adjusted change for April 2022 versus
       April 2021 is an estimated $27.4 million decrease in net profit. The estimated prize payout for April
       2022 was 74.29 percent as compared to 71.23 percent in April 2021.

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    The estimated FY22 year-to-date net profit and prize payout figures both include accruals for
prizes won that have not yet been paid. Due in part to a $14.2 million increase in instant ticket grand
prize claims ($282.4 million through the first 10 months of FY22 as compared to $268.2 million
through the first 10 months of FY21) the estimated year-to-date net profit for the first 10 months of
FY22 is $927.5 million as compared to $969.0 million for the first 10 months of FY21. After adding
a 1-day average net profit figure of $3.1 million due to a shift in the calendar that resulted in 1 fewer
day being included in the net profit figure for the first 10 months of FY22, the adjusted year-over-
year change for the first 10 months of FY22 versus the first 10 months of FY21 is an estimated $38.4
million decrease in net profit. The estimated year-to-date prize payout for the first 10 months of
FY22 is 73.82 percent as compared to 72.97 percent for the first 10 months of FY21.

    Interim Executive Director Bracken provided an April 2022 sales breakdown. He reported that
Powerball sales were up $7.2 million (high jackpot of $473.1 million as compared to $116.9 million
in April 2021), Lucky for Life sales were up $1.5 million, Keno sales were up $1.3 million,
Megabucks Doubler sales were up $720,605 (high jackpot of $10.7 million as compared to $853,071
in April 2021), and All or Nothing sales were up $11,421.

   In comparison to April of 2021, instant ticket sales were down $29.2 million, Mega Millions sales
were down $3.6 million (high jackpot of $106 million as compared to $319 million in April 2021),
Numbers Game sales were down $2.9 million, and Mass Cash sales were down $831,159.

    Five Year Comparison Chart

    Interim Executive Director Bracken presented a five-year comparison chart showing the prize
payout as a percentage of the Lottery’s sales from the last five years. He stated that the prize payout
has been extremely high the last couple of months and is at the highest it has been in the last five
years. He added that this is good news for our players.

    Gross Sales Results –April Sales

    Interim Executive Director Bracken discussed the Gross Sales Results for April FY22 versus
April FY21 Unadjusted Non-Fiscal Year. He reported decreases in instant ticket sales, Mega
Millions, Mass Cash, and the Numbers Game. He reported increases in Powerball, Keno, All or
Nothing, Lucky for Life, and Megabucks Doubler. Instant Games and Monitor Games combined
resulted in a $25.9 million decrease.

    Reporting on year-to-date FY22 versus FY21 sales through April Unadjusted Non-Fiscal Year,
Interim Executive Director Bracken indicated that the games with red sales figures showed a decrease
in sales, the games with black sales figures showed an increase in sales. He reported a significant
decrease in instant ticket sales and Mega Millions, and a strong hold with increases in Powerball and
Keno. Overall, instant tickets were down $82.2 million and monitor game sales were up $154
million.

    Modernization of Drawings

   Interim Executive Director Bracken reported that during the November 26, 2019 Commission
meeting, the former Executive Director presented a four phase approach to modernize the drawings.
Phase one was the purchase of a studio and new equipment which was implemented in December
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2019. Phase two was a proposal to have new drawing times that will be implemented in two weeks.
Phase three is ongoing content enhancement with live streaming and graphics. Phase four involves
the possibility to perform drawings at remote locations.

    New Drawing Times, Background and Awareness

     Interim Executive Director Bracken asked Chief Marketing Officer Edward Farley and his team
to report on the specifics of the new drawing times. Chief Marketing Officer Farley reiterated that in
December 2019, to modernize the draw platform, the Lottery purchased all-new state of the art draw
games from Smartplay International. He stated that the Lottery’s previous machines were so old,
particularly the Numbers Game, that the Lottery was unable to get parts for it. The implementation of
phase one brought about a change with all new equipment. Chief Marketing Officer Farley credited
the efforts of Production Manager Keith Macri and Assistant Drawing Studio Manager Geoff Filleti
who made it possible for the Lottery to live stream all drawings and will now expand that change to
include new draw times occurring at 2:00 p.m. and 9:00 p.m. The new draw times will include all in-
state draw games, which are, the Numbers Game, Mass Cash, and Megabucks Doubler.

    Chief Marketing Officer Farley acknowledged Draw Game Project Manager Shane Taylor, who
has been working diligently on an awareness campaign for all internal Lottery employees and Lottery
retailers, including a paid campaign for notifications. He stated that the aim is to create player
engagement that will cross-pollinate with other games. With the success of the live streaming games,
the new drawing times are more conducive for players at home to participate and watch these games.

    Chief Marketing Officer Farley asked Draw Game Project Manager Taylor to describe the
particulars of the new drawing times. Draw Game Project Manager Taylor reported that the mid-day
drawings for the Numbers Game will be moving from 12:45 p.m. to 2:00 p.m. For all evening
drawings, the draws will occur consecutively at 9:00 p.m. The Numbers Game will be pushed back
an hour and 15 minutes, Mass Cash will move forward to 9:00 p.m. from 9:45 p.m., and Megabucks
Doubler will move forward from 10:45 p.m. to 9:00 p.m. and will remain at two draw days on
Wednesdays and Saturdays.

    Chief Marketing Officer Farley described an additional change. He stated that after the numbers
are drawn at 9:00 p.m., the games will reopen to allow customers to play for the next draw. Draw
Game Project Manager Taylor added that currently, the pools do not reopen until the start-up at 5:00
a.m. the next day for Mass Cash and Megabucks Doubler. This change will increase the number of
hours that players are able to purchase these games.

    Draw Game Project Manager Taylor reported that the new drawing times will allow for the
presentation of multiple games at the same time giving viewers exposure to all the in-state draw
games. More customers will have the opportunity to experience the excitement of watching the
evening drawings live and the Lottery will be re-opening the pools soon after the evening drawings,
as opposed to the next morning.

    Draw Game Project Manager Taylor reported on the awareness campaign for the new draw times.
He stated that on May 16th, the Lottery began notifying retail partners about the changes through
email and daily messages through their terminals. Lottery account representatives have also been
made aware of these changes and were notified through Gem Intelligence, a new technology that was
introduced a few years ago. On June 1st, the Lottery will be informing players of these time changes
with a paid advertising campaign using both digital and radio. The customer facing displays on the
terminals will show these updates as will the messaging on Keno monitors, the Lottery website, social
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media, and push notifications through the mobile app. In addition, emails will be sent to Lottery VIP
Club members.

     Interim Executive Director Bracken added that these time changes are one of the small
improvements that the Lottery can do, at no cost, to move the needle towards more sales. He
reiterated that the Lottery is now condensing all in-state draw times to 9:00 p.m., and the betting pool
will open soon after where before, there was a significant delay. With stores still being open after the
9:00 p.m. draw, the Lottery will hopefully see additional bets being made. With a small budget,
compared to the near $6 billion in sales revenues, it’s difficult to figure out what to do and this no
cost change will help.

    June 7 Instant Ticket Launch

     Product Manager Tom Aiello reported on the June 7th instant ticket launch revealing a popular
multiplier family. He remarked that these types of tickets rank high among focus groups and players
like the bonus spots. These games are printed on sparkle select simulated foil and fluorescent
specialty paper. He revealed the following games: a $1 game ─ 10X The Money, with a top prize of
$10,000; a $2 game ─ 20X The Money, with a top prize of $100,000; a $5 game ─ 50X The Money,
with a top prize of $1,000,000; and a $10 game ─ 100X The Money, with a top prize of $4,000,000.

    Project Manager Aiello concluded that the Lottery is excited for this launch, which will hit the
streets on June 7th.

    Hit 50 Promotion Recap

     Draw Game Project Manager Taylor provided a recap on the recent Hit 50 Promotion that was
reported to the Commissioners during the March meeting. This promotion ran from April 4th through
April 24th, and every 50th draw game ticket sold for $2 or more throughout the state produced a free
$1 Quic Pic ticket of an in-state draw game. He announced great success from this promotion.
Lottery draw game sales during this promotional period increased by 8 percent as compared to the
previous three weeks of sales. The number of wages of $2 or more increased by a total of 163,479.
Draw Game Project Manager Taylor announced that there was a $100,000 Mass Cash prizewinner
who won on a free promotional Quic Pic ticket, which generated free press for the Lottery. He stated
that Interim Executive Director Bracken was able to meet this winner and asked Interim Executive
Director Bracken to share his experience.

    Interim Executive Director Bracken reported that, by chance, he was in the Lottery Dorchester
Claims Center when the Grand Prize Coordinator was assisting the winner and his wife. His wife
shared that her husband was more excited when he told her that he had won the free ticket than when
he came home and told her that he had won the $100,000. Interim Executive Director Bracken
thought this was an amusing comparison and it shows the excitement this promotion generated by
keeping players engaged and creating free press. He described the winner as a hard worker and
manager at a food market in the Dorchester and Roxbury area who hopes to use his winnings as a
down payment on a new home.

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          Social Media

           Chief Marketing Officer Farley asked Social Media Assistant Director Juan Di Prado to update
      the Commission on the ways social media has been utilized to connect with players. Assistant
      Director Di Prado reported that the Lottery has been continuing its support of its 50th anniversary with
      posts on social media. He remarked on a newly created segment on social media, a throwback
      Thursday post published by the Lottery, which is becoming popular with the Lottery’s followers. He
      reported on a recent post featuring Joseph Bonica, who was the Massachusetts State Lottery’s first
      million-dollar winner. Typically, whenever the Lottery creates a post on the social channels, there is
      between 3,000 and 4,000 people reached. With this post, the Lottery reached over 16,000 people and
      triggered 924 engagements on social channels. Assistant Director Di Prado shared a few of the many
      comments generated by this post.

          Assistant Director Di Prado reported that to coincide with the Kentucky Derby, the Lottery dug
      up some of its old horse racing instant tickets and posted them on social media with great results.
      This post engaged an incredible amount of people with over 11,000 reached and over 886
      engagements, including 26 comments. These are the types of posts that people enjoy remembering.

          Assistant Director Di Prado reported that social media was used to publicize the Wheel Spin
      promotion that ran the last two weeks at Lottery regional offices. He stated that Lottery customers
      were engaged, showed a lot of excitement, and won prizes. These posts reached over 5,000 people
      and triggered 12 comments and 876 engagements.

          Assistant Director Di Prado described an in-house video that was done with the help of
      Production Manager Keith Macri and Assistant Drawing Studio Manager Geoff Filleti to promote the
      Lottery’s Keno 5-Spot promotion that is going on until June 4th. He played the video for the
      Commission. Treasurer Goldberg was pleased with the 30 second spot and commented that an
      advertisement is successful when what you want the viewer to remember is remembered and in this
      case, it was 5-Spot. Chief Marketing Officer Farley relayed that these in-house productions keep
      getting better and better and concluded that the analytics for this promotion would be shared at the
      next Commission meeting.

IV.       Advertising Presentation by Full Contact

           Chief Marketing Officer Farley introduced the Commission to the Lottery’s advertising partners
      at Full Contact. He stated that Full Contact has been very engaged with the 50th Anniversary
      Campaign. Taking a special approach, Full Contact and the marketing team at the Lottery gathered
      and discussed what a 50th Anniversary for the Mass State Lottery should look like and concluded that
      there were four main stakeholders. The stakeholders include the communities and where the money
      goes, Lottery retailers who sell the product, the players who keep the Lottery in business, and the
      Lottery employees who make the train run on time every day. It was important to keep a certain
      authenticity to this campaign and therefore all those heard on the campaign’s radio spots and featured
      on the television commercials are employees, town administrators, retailers, and actual winners.
      Chief Marketing Officer Farley divulged that Full Contact has been great to work with and subscribe
      to the Lottery’s belief that the 50th Anniversary needs to be authentic and very special. He credited
      Assistant Director of Stakeholder Engagement Sheila Capone-Wulsin for heading up the 50th
      Anniversary effort as well as Production Manager Macri and Assistant Drawing Studio Manager
      Filleti, who did a lot of the groundwork across the state in getting permission from all who appear in
      the various commercials. Chief Marketing Officer Farley then asked the team at Full Contact for
      their presentation.
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    Full Contact Account Director, Renée Rochon, introduced the members of the Full Contact team
and described the outline for the presentation. She relayed that Full Contact’s Creative Director,
Lawrence O’Toole, would build on Chief Marketing Officer Farley’s introduction, followed by a
high-level media strategy from Norbella Associate Director, Alexa Cavallo, and then a report on the
creative work of the campaign.

     Creative Director O’Toole reported that the 50th Anniversary campaign was a collaborative effort
between Full Contact and Lottery team members. He stated the team is proud of this campaign that
began with a long form video that brought to life the authentic stories and all the impactful ways that
the Lottery has made a difference in the Commonwealth. Building on this idea, it became a type of
tribute with the campaign line, “Here’s to 50 Years of Winning and 50 more.” The message paid
tribute to all the different audiences, where customers fuel small businesses in the state and the way
that employees are so dedicated to all 351 cities and towns. From the initial video, all these stories
came to life, and it was extended with an integrated campaign that was shown on television and
digital video, and across social media.

    Account Director Rochon provided an overview of the media strategy with a goal to have a multi-
channel mix of broad reach vehicles, as well as targeted tactics, that reached all the retailers and
players mentioned. This will be in-market from May 23 to June 26. The channels used were
television and digital video, outdoor, display and paid social, radio and streaming audio, and
sponsorships.

    Director O’Toole stated that creatively, one of the first items was taking the compelling stories
from the long-form videos and reworking them to make sure they fit across broadcast and digital
video mediums. The team produced two :30 second spots that Director O’Toole described as hero
spots. The first spot is a story about the many players in the Commonwealth and how they support
local businesses and it leverages authentic stories from the people whose lives have been impacted by
the Lottery. The team showed the :30 second spot shown across broadcast and digital video.
Treasurer Goldberg expressed her appreciation for the video and Creative Director O’Toole then
shared a second :30 second spot showing how Lottery employees are dedicated to the communities.
This spot will air across broadcast television and digital platforms. He described the videos as
heartwarming that well represent the stories being told and the impact that the Lottery has made over
the past 50 years.

     Director O’Toole reported on The Sound of Winning, which he reminded the Commission was a
fun campaign that originally was a contest generating a jingle written by the winner, Andrew Brink.
Initially, this was a great way to carry people out of the pandemic and to celebrate getting back to
winning and the team steered that message to a 50th Anniversary version. The jingle was re-recorded
with Andrew Brink using more music and a fuller band to a version with a clearer tag of celebrating
50 years of winning and a natural extension of the message into the radio space. Director O’Toole
stated that this would be played in the streaming and terrestrial radio space in concert with other
messages based on the authentic stories. The jingle was played for the Commission.

   Director O’Toole also shared recordings of testimonies from key stakeholders, including Lottery
employees describing the ways they support communities and how winners support local businesses.
The .15 second placements will run alongside the jingle and will include a spot from the Mayor of
Marlboro as well as a local business owner and a Lottery grand prize winner.

    Director O’Toole reported the ways the 50th Anniversary message was continued into the digital
space. The message was utilized on out of home billboards with a look and feel that brought to life
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     the Lottery colors with a celebratory feel. He described it as a clear hard-hitting message that speaks
     on the impact that the Lottery has made over the last 50 years. This message was leveraged and
     repurposed to fit across Instagram, Facebook, Twitter, and Snapchat.

         Director O’Toole described the great relationship that the Lottery has with the Boston Red Sox
     and shared a video that was created using the same visual language that ran in and around Fenway
     Park as another great way to celebrate the 50-year message.

         Full Contact Account Director Rochon took the Commission through the media strategy that built
     awareness on the Mass Cash, Megabucks, and The Numbers Game time change initiative. She
     announced two distinct launches on radio and streaming audio. She stated that a teaser pre-launch
     awareness flight will run from June 6 to June 14, and a regular campaign flight will run from June 15
     to June 30. Account Director Rochon played the two launches for the Commission that will be
     supported on broadcast radio by a :30 second station produced live read script.

         Interim Executive Director Bracken and Treasurer Goldberg thanked Full Contact for their terrific
     presentation. Comptroller William McNamara acknowledged that the marketing strategies both
     internal and external, have been well done. Treasurer Goldberg commented that all these strategies
     are done on an incredibly small budget. For a $5 billion plus operating company, the Lottery’s small
     advertising budget is unheard of as compared to any other operating company that generates the
     amount of volume that the Lottery does.

V.       Matters Requiring Approval of the Massachusetts State Lottery Commission

         VOTE (1): For the reasons set forth in the attached memorandum dated May 11, 2022, the
         Executive Director is authorized to expend up to twenty-four million dollars ($24,000,000.00) in
         Fiscal Year 2023 for the Massachusetts State Lottery Commission’s contracts for instant tickets,
         game designs, and marketing services with the following firms:

                     IGT Global Solutions Corporation
                     10 Memorial Blvd.
                     Providence, RI 02903

                     Pollard Banknote Limited
                     140 Otter Street
                     Winnipeg, Manitoba, R3T 0MB

                     Scientific Games International, Inc.
                     1500 Bluegrass Lakes Pkwy.
                     Alpharetta, GA 30004

         This original award was made pursuant a competitive bid process (RFR LOT # 2101).

         Commissioner Meghan Liddy made a motion to authorize the Executive Director to expend these
     funds and Assistant General Counsel Arielle Mullaney seconded the motion.

         Interim Executive Director Bracken stated that this is an annual vote that is taken by the
     Commission each year and in accordance with RFR LOT 2101. This will allow the Lottery to expend
     funds pursuant to contracts with the three companies. The Lottery met with these companies last
     week and presented some interesting ideas for instant tickets over the next year. Interim Executive
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Director Bracken reiterated that this will be for $24,000,000.00, to develop, produce, and market
instant tickets.

    Treasurer Goldberg, recognizing there was no further discussion, moved the motion to a roll call
vote. Assistant General Counsel Arielle Mullaney: yes; Comptroller William McNamara: yes;
Commissioner Meghan Liddy: yes; and Treasurer Goldberg: yes. The Motion carried.

    VOTE (2): For the reasons set forth in the attached memorandum dated May 11, 2022, the
    Executive Director is authorized to expend up to five million dollars ($5,000,000.00) in Fiscal
    Year 2023, subject to legislative appropriation, for the Massachusetts State Lottery Commission’s
    contracts for advertising services with:

            Full Contact
            186 Lincoln Street, Floor 7
            Boston, MA 02081

    This original award was made pursuant a competitive bid process (RFR LOT # 2006).

   Assistant General Counsel Arielle Mullaney made a motion to authorize the Executive Director to
expend these funds and Comptroller William McNamara seconded the motion.

     Interim Executive Director Bracken reported that during May 2021, the Lottery went through a
competitive bid process which resulted in a three-year contract with two one-year extensions with
Full Contact. This is annually funded through the Lottery’s advertising line item 0640-0010 and
through the Lottery’s Monitor Game line item 0640-005. Funding for year one of the current contract
will expire on June 30, 2022. The Lottery requests that the Commission set the maximum obligation
for the advertising services with Full Contact for July 1, 2022 through June 30, 2023 at
$5,000,000.00. This request is contingent upon funding in the FY23 budget.

    Treasurer Goldberg remarked that this was a very lean advertising budget for a very large
operating company.

    Treasurer Goldberg, recognizing there was no further discussion, moved the motion to a roll call
vote. Comptroller William McNamara: yes; Commissioner Meghan Liddy: yes; Assistant General
Counsel Arielle Mullaney: yes; and Treasurer Goldberg: yes. The Motion carried.

    VOTE (3): For the reasons set forth in the attached memorandum dated May 17, 2022, the
    Executive Director is authorized to enter into three-year contracts with the below vendors to
    purchase bet slips:

            PAP Technologies, Inc.
            200 Centerville Road
            Lancaster, PA 17603

            Total Business Systems, Inc. d/b/a Deluxe Data Printers
            30800 Montpelier
            Madison Heights, MI 48071

            RMF Printing Technologies, Inc.
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            50 Pearl Street
            Lancaster, NY 14086

    This award is made pursuant to a competitive bid process (RFR LOT # 2205).

    The aggregate maximum obligation assumed hereunder for these three-year contracts shall not
    exceed one million, eight hundred thousand dollars ($1,800,000.00). The terms of these contracts
    may be extended for two (2) additional one-year periods.

    Comptroller William McNamara made a motion to authorize the Executive Director to enter into
these three-year contracts and Commissioner Meghan Liddy seconded the motion.

    Interim Executive Director Bracken announced this as a dual vote. He reminded the Commission
on the importance of Lottery bet slips and the described the printing process for bet slips as very
complex. The paper for these bet slips must be maintained with a certain type of stock, size, and the
quality assurance testing is very complex. The intent of this procurement is to award contracts for bet
slips. Since the supply of bet slips is critical, three vendors are used to insure against any potential
interruption in supply and to insure adequate production capacity in times of heavy demand. The
Lottery has had delivery problems in the past and needs the additional capacity provided by a third
vendor. The supply of bet slips must be maintained, and the additional vendors assures that the
supply is maintained.

     This will be a three-year contract with two one-year renewable options. The recommendations is
that the Lottery be authorized to enter into contracts with these three vendors to purchase bet slips.
Using current fiscal year spending as a guideline, the Lottery requests the Commission authorize an
aggregate maximum obligation of one million, eight hundred thousand dollars ($1,800,000.00) for the
initial three-year contract period.

    Interim Executive Director Bracken stated that as part of the Treasurer’s modernization process,
the Lottery has been working with an outside vendor to create a digital bet slip, enabling a player to
access a bet slip on a mobile device and save it in a profile app that would then create a QR code to be
scanned at any terminals. A test-run will be done on Keno, hopefully within the next 30 to 60 days.

     Commissioner Liddy remarked that with the supply-chain issues, having multiple vendors is a
smart idea. She asked how each vendor is selected from order to order. Chief Financial Officer
Didier Bertola explained that the Lottery investigates which vendor has the available paper stock and
which vendor has the available bandwidth to print the bet slips and tries to utilize them in the most
efficient manner while giving business evenly to everyone. It is mostly based on availability and
timing. Commissioner Liddy asked if each job is bid on individually. Chief Financial Officer Bertola
explained that in the past, the Lottery has bid for the duration of the three-year contract based on the
price of the paper. This time, the Lottery was given pricing, with the caveat that there could be some
revisions on a year-to-year basis.

    Assistant Executive Director of Operations Matthew DiFrancesco stated that it’s been a rough
two years. He added that the Lottery has been in steady contact with all three vendors to check
supplies and to be in constant communication on a weekly basis. The Lottery forecasts six to eight
months out to place orders and to secure paper, boxes, and print time.

   Interim Executive Director Bracken reminded the Commission that back in March, the Lottery
came to the Commission asking for an increase appropriation for this fiscal year to be able to take
advantage of a vendor who received a supply of paper. He described the paper situation as drastic
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                         Official Minutes of 05/31/2022 Meeting

and the need to purchase it when it is available. During a recent team phone call with one of these
vendors, he revealed that in terms of paper, the outlook is not good. Vendors are forecasting months
and months in advance with a certain level of uncertainty. This is another good reason to look at a
digital bet slip option.

    Treasurer Goldberg, recognizing there was no further discussion, moved the motion to a roll call
vote. Commissioner Meghan Liddy: yes; Comptroller William McNamara: yes; Assistant General
Counsel Arielle Mullaney: yes; and Treasurer Goldberg: yes. The Motion carried.

    VOTE (4): For the reasons set forth in the attached memorandum dated May 17, 2022, the
    Executive Director is authorized to enter into three-year contracts with the below vendors to
    purchase thermal roll ticket stock:

            PAP Technologies, Inc.
            200 Centerville Road
            Lancaster, PA 17603

            Total Business Systems, Inc. d/b/a Deluxe Data Printers
            30800 Montpelier
            Madison Heights, MI 48071

            RMF Printing Technologies, Inc.
            50 Pearl Street
            Lancaster, NY 14086

    This award is made pursuant to a competitive bid process (RFR LOT # 2205).

    The aggregate maximum obligation assumed hereunder for these three-year contracts shall not
    exceed nine million, three hundred thousand dollars ($9,300,000.00). The terms of these
    contracts may be extended for two (2) additional one-year periods.

    Commissioner Meghan Liddy made a motion to authorize the Executive Director to enter these
three-year contracts and Assistant General Counsel Arielle Mullaney seconded the motion.

     Interim Executive Director Bracken stated that these are the same three companies from the
previous vote. It is important to note that these are the only vendors that supply this critical item, so it
is in the Lottery’s best interest to contract with all three vendors. Each vendor provided three prices
with the caveat that it could be revisited on an annual basis based on the cost of paper coming in from
their mills.

    It is recommended that the Lottery be authorized to enter into contracts with the above vendors to
purchase thermal roll ticket stock. Using current fiscal year spending as a guideline, the Lottery
requests the Commission authorize an aggregate maximum obligation of nine million, three hundred
thousand dollars ($9,300,000.00) for the initial three-year contract period.

     Interim Executive Director Bracken concluded that the cost of paper for the Lottery will go down
if the legislature were ever to pass iLottery and move a lot of Lottery sales over to a digital platform,
eliminating the need for paper. Chief Financial Officer Bertola added that paper costs has increased
35 percent from 2021 to 2022, and the Lottery is estimating the cost for 2023 given the current
situation with the supply issues.
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                        Official Minutes of 05/31/2022 Meeting

    Treasurer Goldberg, recognizing there was no further discussion, moved the motion to a roll call
vote. Commissioner Meghan Liddy: yes; Comptroller William McNamara: yes; Assistant General
Counsel Arielle Mullaney: yes; and Treasurer Goldberg: yes. The Motion carried.

    VOTE (5): For the reasons set forth in the attached memorandum dated May 23, 2022, the
    Executive Director is authorized to renew, for a one-year period, CheckPoint firewall
    maintenance and related support services from:

            IntraSystems, Inc.
            35 Braintree Hill Office Park, Suite 302
            Braintree, MA 02184

    This award is made pursuant to statewide contract ITC73.

    The total maximum obligation for these services during Fiscal Year 2023 shall not exceed one
    hundred eighty thousand dollars ($180,000.00).

    Assistant General Counsel Arielle Mullaney made a motion to authorize the Executive Director to
renew, for a one-year period, CheckPoint firewall maintenance and related support services and
Comptroller William McNamara seconded the motion.

    Interim Executive Director Bracken stated the renewal of these services is necessary to maintain
the current security posture of the Lottery and to continue providing secure remote access to the
Lottery’s workforce. CheckPoint Firewalls play a critical role in the overall security strategy and are
a foundational component for maintaining the confidentiality, integrity, and availability of the
information systems and data. These services offer 24 x 7 support, product updates, threat extraction,
and data loss prevention. This is pursuant to the statewide contract ITC73 and will not exceed
$180,000.00, and is for a renewal.

    Treasurer Goldberg, recognizing there was no further discussion, moved the motion to a roll call
vote. Comptroller William McNamara: yes; Assistant General Counsel Arielle Mullaney: yes;
Commissioner Meghan Liddy: yes; and Treasurer Goldberg: yes. The Motion carried.

    VOTE (6): For the reasons set forth in the attached memorandum dated May 23, 2022, the
    Executive Director is authorized to enter into contracts with vendors qualified pursuant to RFQ
    LOT # 2204 to purchase Parts and Repair Services to support the Lottery’s inventory of
    terminals, equipment, and associated peripherals that are deployed to Sales Agents across the
    Commonwealth.

    These awards will be made pursuant to a competitive bid process (RFQ LOT # 2204 – Bid # 22-
    8-1 and RFQ LOT # 2204– Bid # 22-9-1).

    The aggregate maximum obligation for these contracts during Fiscal Years 2023-2025 shall not
    exceed three million dollars ($3,000,000.00).

    Comptroller William McNamara made a motion to authorize the Executive Director to enter into
these contracts and Assistant General Counsel Arielle Mullaney seconded the motion.

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                        Official Minutes of 05/31/2022 Meeting

     Interim Executive Director Bracken stated there have been multiple RFRs that have gone out and
this vote focuses on two points of a nine-point RFR – Parts and Service, and Repairs. The Lottery is
asking for $3,000,000.00 to be able to fix the Flex terminals and Lottery Player Activated Terminals
(PAT) machines. He reported that the warrantees are coming up on these terminals and there are no
parts remaining in-house. Recently, the Lottery presented before the IT Investment Advisory Board
(IIAB) and part of the funding that the Treasurer worked with the Governor on was for an inclusion
inside the infrastructure bill for a significant portion of money to replace these terminals in the very
near future and we are waiting for approval. In the meantime, these terminals and vending machines
will need to be repaired. This is for $3,000,000.00 for over three years to purchase these parts, get
them in, and keep things running to generate revenue. This costs for these parts run the gambit of
what is needed as some of these parts are as inexpensive as $1.50, and others as much as a few
hundred dollars.

    Commissioner Liddy asked about how many vendors the Lottery has in getting these parts.
Interim Executive Director Bracken explained that a lot of the parts come from the same vendor of
where the equipment was purchased, and so a lot of the parts are vendor specific. There’s a network
of suppliers that the vendor uses to reach out to. Some of the betting machines were purchased
through IGT and some through Scientific Games, so it depends on which vendor it was purchased
from.

    Treasurer Goldberg, recognizing there was no further discussion, moved the motion to a roll call
vote. Commissioner Meghan Liddy: yes; Comptroller William McNamara: yes; Assistant General
Counsel Arielle Mullaney: yes; and Treasurer Goldberg: yes. The Motion carried.

    VOTE (7): For the reasons set forth in the attached memorandum dated May 23, 2022, the
    Executive Director is authorized to continue to utilize Heroku services through Carahsoft
    Technology Corporation, from Salesforce.com, Inc. pursuant to statewide contract ITS60: Cloud
    Solutions to ensure proper support of the Lottery’s digital environment.

    The total maximum obligation for these services during the period of June 30, 2022 through June
    29, 2023 shall not exceed one hundred ninety thousand dollars ($190,000.00).

   Comptroller William McNamara made a motion to authorize the Executive Director to utilize
Heroku services and Assistant General Counsel Arielle Mullaney seconded the motion.

    Interim Executive Director Bracken stated for the past two years, the Lottery has subscribed to
the Heroku Platform to support both the Lottery website and existing mobile applications. This has
been instrumental for both remote ticket cashing and when the Lottery assisted with VaxMillions.
Heroku has become a core component of the remote ticket cashing application infrastructure and
usage has exponentially increased with the success of the remote ticket cashing app averaging about
20 percent of all claims between $601 and $5,000 being cashed remotely and no longer at the regional
offices. Heroku has been a cornerstone in the integrity of that app. It is a cloud platform operating
under the Salesforce organization and purchased through statewide contract ITS60 for cloud
solutions. The Lottery did not need to come up for previous votes because the cost was under
$150,000.00, but given where the app went from zero to where it is now, with tens of thousands of
claims being cashed, it will cost close to $190,000.00.

    Treasurer Goldberg, recognizing there was no further discussion, moved the motion to a roll call
vote. Assistant General Counsel Arielle Mullaney: yes; Comptroller William McNamara: yes;
Commissioner Meghan Liddy: yes; and Treasurer Goldberg: yes. The Motion carried.
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                               Official Minutes of 05/31/2022 Meeting

VI.       Other Business – Reserved for matters the Chair did not reasonably anticipate at the time
          of posting

         After asking if there was any other business to discuss, Treasurer Goldberg stated that the
      Commission would be moving into executive session.

VII.      Executive Session

          Treasurer Goldberg sought a motion pursuant to Massachusetts General Laws, Chapter 30A,
      Section 21, Purpose 6 to enter into executive session to consider the purchase, exchange, lease or
      value of real property.

         Treasurer Goldberg sought a motion to move into executive session. Comptroller William
      McNamara made a motion to move into an executive session and Commissioner Liddy seconded the
      motion.

         Comptroller William McNamara: yes; Commissioner Meghan Liddy: yes; Assistant General
      Counsel Arielle Mullaney: yes; and Treasurer Goldberg: yes. The Motion carried.

          It was noted that the Commission would not reconvene in open session at the conclusion of the
      executive session.

          The open session of the Commission meeting adjourned at 11:42 a.m.

List of Documents and Exhibits Used:

•     MSLC May 2022 Commission Meeting Book
•     MSLC Meeting Executive Director’s Report, May 31, 2022
•     50th Anniversary + New Drawing Times Campaign Recap – Commission Meeting 05 31 22

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