BuSiNeSS PlAN - California Lottery

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handles all Spanish language advertising. Advertising services includethe development of different messaging strategies for different games,oversight over media production services, and the actual media placementof advertising messages. The CSL also has smaller contracts for pointof sale advertising and African American and Asian advertising.1.5 The CSL Game PortfolioThe CSL offers a diverse portfolio of games that cater to the entertainmentneeds of a broad consumer base. Our product portfolio consists of twoprimary types of games: draw games and Scratchers games.Draw GamesDraw games involve players purchasing paper tickets which containcertain numbers (or symbols) according to the game’s play style. Thetickets are issued by store clerks or by stand-alone self-service terminals.In all cases, the terminal transmits the player’s numbers to a centralsystem computer, which logs the wager.The CSL offers a diverseportfolio of games that caterto the entertainment needsof a broad consumer base.At the time tickets are issued, they have no prize value. However, atsome point after the purchase, the CSL conducts what is called a “draw”where winning numbers are selected randomly. Players win prizes bymatching the numbers on their tickets to the winning numbers drawnby the CSL.Draw games include SuperLOTTO Plus, MEGA Millions, Fantasy 5,Daily 3, Daily Derby, and Hot SPOT.Scratchers GamesScratchers tickets, also known within the lottery industry as “instanttickets” are issued in a variety of distinct games which have unique playstyles and themes. The CSL typically orders between 20 million and 30million tickets for each game. Games are packaged in groups of 80 or250 tickets which are sold to retailers for sale to the public.Scratchers games have a latex-covered play area that is removed byscratching to reveal various numbers and symbols. Players typicallydetermine if they won by achieving some specified winning outcomelike uncovering three identical dollar amounts or by matching somemaster set of numbers or symbols.Elaborate security measures are used to ensure that no one, includingCSL employees, contractors, or retailers can determine where any ofthe winning tickets are located before they are sold.California Lottery 2007–2010 Business Plan – 13 –
Game ProfilesSuperLOTTO PlusValue Proposition: Offers the opportunity to win a lifealtering prize.FY 06/07 Sales: $630,786,207 (estimated)How it’s played: Pick five numbers from 1 to 47 and one MEGAnumber from 1 to 27 for each play. Cost is $1 per play. Draw timesare Wednesday and Saturday at 7:57 PM.SuperLOTTO Plus Facts• SuperLOTTO Plus jackpots typically range from $7 million to$100 million with an average jackpot of $27 million.• Sales for this game currently range from $10 million per weekto over $20 million per week once the jackpot exceeds the$80 million level.• The game originally started as a pick 6 of 49 and has evolvedover the years.MEGA MillionsValue Proposition: Offers the opportunity to win a lifealtering prize.FY 06/07 Sales: $393,431,768 (estimated)How it’s played: Pick five numbers from 1 to 56 and one MEGAnumber from 1 to 46 for each play. Cost is $1 per play. Draw timesare Tuesday and Friday at 8:00 PM.MEGA Millions Facts• MEGA Millions is a multi-state lotto game in which 12 statescurrently participate.• California became a MEGA Millions state in June 2005.• In March of 2007, MEGA Millions hit a record jackpotof $390 million.• Jackpots typically range from $12 million to $300 million withan average of $66 million.• CSL sales range from $5 million per week when jackpots arebetween $12 million and $30 million to over $20 million per weekonce the jackpot breaks $200 million.– 14 –California Lottery 2007–2010 Business Plan
Page 3: CommissionersJOHN MASS, of Los Ange
Page 6 and 7: Introduction
Page 8 and 9: IntroductionIn order to fulfill the
Page 10: focus on huge jackpots and more foc
Page 14 and 15: Figure 1.2 - 2004-05 K-12 Percent o
Page 16 and 17: 1.1% General Operating ExpensesGene
Page 18 and 19: SupermarketsAlthough supermarkets h
Page 22 and 23: Fantasy 5Value Proposition: The bet
Page 24 and 25: 1.6 Organizational Structureof the
Page 26 and 27: ITSD consists of four offices and t
Page 30 and 31: Integrity,Security,Honesty,and Fair
Page 32: The CSL not only employsinternal au
Page 35 and 36: Since its inception, the CSL has wo
Page 37 and 38: Last year, the California Problem G
Page 39 and 40: Marketanalysis
Page 41 and 42: EthnicityThe following charts show
Page 43 and 44: GenderThe household incomeof past m
Page 45 and 46: 3.2 Consumer ProductSales Compariso
Page 47 and 48: Technology TrendsAll of these techn
Page 49 and 50: are large, to maintain sales in lot
Page 51 and 52: IntroductionIn FY 05/06, the CSL re
Page 53 and 54: Figure 4.2 is a list of some of the
Page 55 and 56: Figure 4.4 - Overall PRIZE PAYOUTS
Page 57 and 58: Figure 4.5 shows that in terms of p
Page 59 and 60: Raffle GamesRaffle-style games are
Page 61 and 62: Pursuant to section 8880.64 of the
Page 63 and 64: Fig. 5.12 CSL Scratchers Game Growt
Page 65 and 66: As shown in Figure 5.13, the lotter
Page 67 and 68: Fig. 5.15 Sales per RetailerFigure
Page 69 and 70: etailers with special “Check-a-Ti
Page 71 and 72:
Gaming System ComplexityThe CSL’s
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Fig. 5.19 Budgeted Per Capita Adver
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There is an opportunity to reverse
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Public Relations and OutreachOur fr
Page 80 and 81:
Ticket Dispenser RestrictionsThe re
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IntroductionA careful analysis of o
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Unfortunately, increasing jackpot s
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Key StrategicInitiatives
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Shift the Jackpot ParadigmOur strat
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12. Recruit Non-traditional Retaile
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www.calottery.com600 North 10th Str
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BuSiNeSS PlAN - California Lottery

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