BuSiNeSS PlAN - California Lottery

More documents

Recommendations

Info

Historical CSL SalesHistorically, CSL sales have increased and decreased from year to year,but overall sales levels have grown significantly since the inception ofthe CSL. As shown in Figure 4.1, since 1986 CSL sales have grown from$1.7 billion to $3.5 billion a year.Fig. 5.1 Historical Lottery Sales by Fiscal YearFigure 4.1 – Historical lottery sales by fiscal yearSince 1986 CSL saleshave grown from$1.7 billion to$3.5 billion a year.$3,500$3,000$2,500$2,000$1,500$1,000$500$019861988199019921994Sales in Millions199619982000200220042006Public education has used Lotterymoney for new equipment includingestablishing computer labs in schools.– 42 –California Lottery 2007–2010 Business Plan
Figure 4.2 is a list of some of the key events which have impacted CSLsales since 1986:Figure 4.2 – KEY SALES EVENTS OVER TIME1985–86 Scratchers sales begin on October 3, 1985; salesare more than $ 10 million per day, but quickly dropas expected based on the experiences of other newlotteries. Fiscal year sales end up at over $ 1.7 billion.1986–87 Scratchers sales drop as expected, but theintroduction of Lotto offsets much of the sales decline.1987–88 to 1988–90 Lotto sales grow, aided by the introduction of twiceweekly draws. Scratchers sales gradually decline.1990–91 to 1991–92 Scratchers sales decline over this time period forunknown reasons, while Lotto sales soften. Lotto ismodified to a 6/53 matrix (players pick 6 numbersfrom a field of 53 numbers instead of 6 numbers froma field of 49 numbers) which appears to accelerate thegame’s sales decline.1992–93 to 1994–95 Lotto is re-launched with a 6/51 matrix and salesrebound. Three successful draw games, Fantasy 5,Daily 3, and Keno are introduced. All three gameshelp fuel sales increases. The Lottery implementsa multiple Scratchers strategy and installs vendingmachines. Scratchers sales almost double in the nextfour years.1995–96 Keno is terminated on June 24, 1996 as a result of aCalifornia Supreme Court ruling. In addition, vendingmachines are removed from retailer locations basedon an Attorney General’s opinion.1996–97 to 1999–00 Keno is replaced with Hot SPOT; the Legislatureapproves the reinstallation of vending machines; andLotto is again modified with positive results. The Lotteryimplements a policy of redirecting funds into additionalScratchers prizes. Sales increase significantly.2000-01 to 2002-03 A State Controller’s Office recommendation resultsin unclaimed Lotto jackpot annuity prize moneyreverting to education as a lump sum, rather thanover the term of the annuity. This results in a onetime revenue windfall of approximately $36 millionin fiscal year 2000-01.2003-04 to 2004-05 New gaming contract saves the Lottery about $ 40million per year. These funds are invested in Scratchersprizes and sales again increase significantly.2005-06 Sales reach a record level at just under $ 3.6 billion.California Lottery 2007–2010 Business Plan – 43 –
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 20 and 21: handles all Spanish language advert
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: IntroductionIn FY 05/06, the CSL re
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
Page 73 and 74: Fig. 5.19 Budgeted Per Capita Adver
Page 75 and 76: There is an opportunity to reverse
Page 77: Public Relations and OutreachOur fr
Page 80 and 81: Ticket Dispenser RestrictionsThe re
Page 82 and 83: IntroductionA careful analysis of o
Page 84 and 85: Unfortunately, increasing jackpot s
Page 86 and 87: Key StrategicInitiatives
Page 88 and 89: Shift the Jackpot ParadigmOur strat
Page 90 and 91: 12. Recruit Non-traditional Retaile
Page 92: www.calottery.com600 North 10th Str

BuSiNeSS PlAN - California Lottery

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?