BuSiNeSS PlAN - California Lottery

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The first lotto gameoffered by the CSL wasLotto 6/49. This gamewas introduced in October1986. Since the introductionof Lotto 6/49, the CSLhas taken numeroussteps to improve lottogame sales with varyingdegrees of success.With the exception of raffle games, the CSL’s draw games fall into twobasic categories: lotto games and daily games.Lotto games are draw games that offer long odds of winning a very large,life-altering jackpot prize. Lotto games currently have only two prizedrawings per week each. The CSL currently offers two lotto games:MEGA Millions and SuperLOTTO Plus.Daily games are draw games that offer good odds of winning a smallertop prize. Daily games have a prize drawing every day of the week. TheCSL currently offers four daily games: Fantasy 5, Daily 3, Daily Derby,and Hot SPOT.Improving Lotto Game SalesThe first lotto game offered by the CSL was Lotto 6/49. This game wasintroduced in October 1986. Since the introduction of Lotto 6/49, theCSL has taken numerous steps to improve lotto game sales with varyingdegrees of success. These steps include complete game redesigns andthe addition of new game features.In addition to game redesigns and new game features, the CSL routinelyruns special promotions aimed at increasing lotto game sales. Over thecourse of the last 15 years, the CSL has run about 28 such promotions.Some examples include the “Match 3 Numbers for a Million” promotionwherein a specified number of players who match 3 out of 6 numbers arerandomly selected to win $1 million instead of the normal $5 prize andthe “Buy 10 SuperLOTTO tickets and Get 1 Free” promotion that providesa purchase incentive by offering a free play with every $10 purchase.Improving Daily Game SalesThe first daily game offered by the CSL was a card themed game calledDecco. This game was introduced in March 1990. As with lotto games,the CSL has taken numerous steps to increase sales of daily games byredesigning the games, adding game features and supporting the gameswith promotions.Over the course of the last 15 years, the CSL has run about 19 promotionsto increase daily game sales. Most of these promotions were aimed at theHot SPOT game. Daily game promotions have also included cross promotingFantasy 5 with SuperLOTTO Plus by offering a free SuperLOTTO Plus playwith every Fantasy 5 purchase of $5 or more.– 48 –California Lottery 2007–2010 Business Plan
Raffle GamesRaffle-style games are the newest draw games in the lottery industry.These games are designed to increase draw game sales by attractingnew customers who normally do not play the lottery by appealing topeople’s familiarity with raffles. Raffle games offer a limited quantityof tickets for a limited time period. Prizes are normally awarded in one“grand prize” drawing that is tied to a holiday like New Year’s Eve.The CSL launched its first Raffle game, Million Dollar Raffle, in February2007. This game was tied to the St. Patrick’s Day holiday. While the gamedid not sell out, it raised over $5 million in mostly incremental revenue forpublic education. The game was well received by the public, and lotteryretailers are requesting a return of the game. The CSL plans to run moreRaffle games in the future.Draw Game AssessmentAside from legal restrictions, the CSL faces the same challenge that allother lotteries in the nation are facing when it comes to improving drawgame sales. As shown in Figure 4.7, draw game sales have been stagnantthroughout the industry for the last several years despite numerous effortsin various states to improve sales.Figure 4.7 – Industry Fig. 5.7 Industry Draw Draw Game Game Sales: 1998-2006 1998–2006$20$20$19.63 $19.71 $19.22 $19.18$20.11$20.44$21.75$21.11$22.71Draw game sales havebeen stagnant throughoutTotal Sales in Billions$15$10the industry for the lastseveral years despitenumerous efforts in variousstates to improve sales.$5$01998 1999 2000 2001 2002 2003 2004 2005 2006Source: La Fleur’s 2007 World Lottery AlmanacCalifornia Lottery 2007–2010 Business Plan – 49 –
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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 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: Figure 4.5 shows that in terms of p
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
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