BuSiNeSS PlAN - California Lottery

Technology TrendsAll of these technologytrends point to a societythat is moving towardeasily accessible andcustomizable content,consumer conveniences,and digital interactions.Major technological developments are occurring in wireless communicationsand mobile computing. High-speed wireless networks are being establishedin numerous locations to allow everyone access to this service. This willexpand society’s ability to communicate in different ways than in the past.Mobile phones are becoming increasingly sophisticated with additionalfunctionality being introduced regularly. Text messaging continues to growand is increasingly used to provide personalized marketing. Mobile phonesand personal digital assistants can now be used to play MP3 music files,watch television and videos, support network gaming, and make purchases.Information is readily available and often customizable to meet user’sneeds. Technologies like Rich Site Summary (RSS) allow for syndicatingnews and the content of news-like sites to be personally deliveredto consumers. More services are being made available that allow peopleto subscribe to services and receive information and updates on specifictopics at their convenience.All of these technology trends point to a society that is moving towardeasily accessible and customizable content, consumer conveniences,and digital interactions.3.4 Lottery Industry Trendsand Best PracticesIn the United States, lotteries operate in 42 states and the District ofColumbia. The following is a brief overview of some significant industrytrends and best practices over the past 10 years.Higher Payout ScratchersBolstered by the success of state lotteries like Massachusetts and Texas inthe 1990s, virtually all state lotteries have been increasing their Scratchers prizepayouts and enjoying significant sales and profits gains. The CSL has alsofollowed this trend and enjoyed major sales gains, although to a lesser extent.Higher Price Point TicketsIn the 1980s, all lottery Scratchers tickets sold for $1 throughout the country.In the early 1990s several states experimented with $2 tickets, and theirsuccess led to the introduction of $3 tickets and $5 tickets. In most cases,the more expensive tickets were also large in size and they featured higher– 38 –California Lottery 2007–2010 Business Plan