BuSiNeSS PlAN - California Lottery

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 –