Charitable Bingo Operations Business Plan - Texas Lottery

performance with other jackpot games in Texas. The Texas Lottery is currently exploring add-on game
features for the Lotto Texas game. These concepts will be researched and evaluated for revenue potential and
the Texas Lottery will determine whether to proceed in launching one of these add-ons.
On-line Game Cross Promotion
The Texas Lottery has been very successful in designing instant games that feature or highlight games from
its on-line portfolio. A prize in these instant games is a free play in the associated on-line game. These
games have performed well from a sales perspective and introduced instant game players to the Texas
Lottery’s on-line product offerings. The agency will continue to introduce these games.
Distribution Channels
Background
Entertaining and relevant products are critical to the Texas Lottery’s success in achieving its revenue
generation mission for the state of Texas. Equally important is execution related to product placement. It is
critical that products are conveniently and widely available at a variety of locations frequented by
consumers.
The Texas Lottery retailer base is made up of approximately 16,800 licensees. Although the base contains a
variety of trade styles, convenience and grocery stores are the dominant trade-style segments. Together,
these two trade styles comprise approximately 90 percent of retailers and more than 95 percent of Texas
Lottery sales. Convenience and grocery stores are considered to be traditional lottery trade styles. Other
common retail trade styles – such as general merchandise, pharmacy and ‘”big box” – are typically
categorized as non-traditional lottery trade styles, as they have not broadly adopted the lottery category as a
standard product offering.
Challenges and Opportunities
The Texas Lottery must continue to work to maintain its presence and relationship with traditional lottery
trade styles, while actively pursuing opportunities to expand into non-traditional lottery trade styles.
There are several challenges to expanding lottery distribution channels. Independently owned retailer
establishments are often focused on offering higher profit-margin products that can be more easily
correlated to bottom-line revenue. As lottery products produce lower profit margins than many other retail
products, prospective retailers’ interest in adding the lottery category can be limited. Also, the instant
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