BuSiNeSS PlAN - California Lottery

Other Strategies to Maximize Scratchers SalesThe CSL has recently adopted a more aggressive approach tothe use of callout messaging on Scratchers tickets. Callout messagesseek to capitalize on a game’s particular strength, suchas a large top prize or good overall odds of winning. Over thepast year, the CSL has added more ticket messages about topprizes, the number of prizes in a game, or the total amount ofprizes in a game. While the results have been generally positive,the CSL has a need to better understand exactly how and whycallouts drive consumers to buy a particular game. To answerthese questions, the CSL formed a joint initiative with ScientificGames to determine the optimal number and type of callouts forthe purposes of maximizing Scratchers sales. The end result ofthe research is a secure, interactive database containing detailedinformation about over 15,000 Scratchers games, over 500,000weeks of sales data, and over 7,100 ticket images. All of this datais sorted and filtered to help us determine the optimal messagingstrategies for different types of Scratchers games.In fiscal year 2005-06, the CSLsupported local businesses by payingretailers sales commissions of over$252 million.Another strategy the CSL has used to stimulate incremental Scratcherssales has been to increase ticket prices and providing a more involvedgaming experience which takes longer to play. Again, this has been anindustry best practice, but it effectively requires higher prize payouts tosupport the more expensive games where players have come to expectmore value.Figure 4.13 – Scratchers Game Price Point Distribution5.13 Scratcher’s Game Price Point Distribution Calendar Year 2006Calendar Year 200645%40%35%44.00%IndustryCalifornia30%25%20%15%13.80%19.80%25.20%20.60%24.00%15.60%19.70%10%8.60%8.00%5%0%0.00%$1 $2 $3 $5 $10 $20+0.00%Source: La Fleur’s 2007 World Lottery Almanac– 54 –California Lottery 2007–2010 Business Plan