Massachusetts State Lottery
Commission Meeting
Executive Director’s Report
Delivered by: Michael R. Sweeney
February 27, 2017
Lottery Sales Update – January
•
Overall sales for January of 2017 were down $58 million over January 2016 due largely to last year’s worldrecord setting $1.586 BILLION Powerball jackpot that drove Powerball sales to unprecedented heights.
•
Net profit for January 2017 was $105.6 million compared to $125.3 million in January 2016, a $19.7 million
decrease in net profit from January 2016.
•
Our prize payout for January 2017 was 71.38 percent, as compared to 70.68 percent in January 2016. Due
to lower instant ticket jackpot prizes claimed and the absence of last fiscal year’s accrual related to the $20
million end of game Mega Cash prize, our year-to-date prize payout for the first seven months of FY17 is
71.44 percent, as compared to 73.11 percent for the first seven months of FY16.
•
Our year-to-date net profit for the first seven months of FY17 is $647.1 million compared to $603.1 million
for the first seven months of FY16. After subtracting a 5-day average net profit figure of $14.8 million due
to a shift in the calendar that resulted in 5 more days being included in the net profit figure for the first
seven months of FY17, the adjusted year-over-year change for the first seven months of FY17 vs. the first
seven months of FY16 is a $29.2 million increase in net profit.
•
Instant Ticket sales experienced a $5.2 million increase in January of 2017 over January of last year. KENO,
Mega Millions and Numbers Game also saw sales increases in January of 2017 over January of last year.
KENO sales were up $2.2 million, Mega Millions sales were up $59,789 and Numbers Games sales were up
$23,531
•
Powerball sales were down $65.6 million in January of 2017 compared to January of 2016 due to last year’s
$1.586 BILLION jackpot. Compared to January of 2016, Megabucks Doubler sales for January of 2017 were
down $352,181, Mass Cash sales were down $266,229 and Lucky for Life sales were down $135,668.
•
Sales of the new All or Nothing monitor game, which launched July 18, totaled $1,091,127 for the month.
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All or Nothing
Jackpot Poker
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MSLC Gross Sales Results
JANUARY FY17 vs. FY16 Unadjusted Non Fiscal Year
($ millions)
Through February 4, 2017
FY17
Instant Tickets
Mega Millions
Powerball
KENO
Mass Cash
All or Nothing
Lucky for Life
Numbers Game
Megabucks Doubler
Jackpot Poker
Total
69.9 to 80.4
Instant Tickets
Draw Games + KENO
Total
69.9 to 80.4
Unadjusted
50.0
50.0
70.0
55.0
70.0
60.0
63.0
55.0
50.0 to 70.0
$337.8
$5.5
$8.1
$86.7
$7.5
$1.1
$2.4
$30.8
$2.4
$0.0
$482.1
$337.8
$144.3
$482.1
Month
% of Total
70.1%
1.1%
1.7%
18.0%
1.6%
0.2%
0.5%
6.4%
0.5%
0.0%
100.0%
70.1%
29.9%
100.0%
1/1/17-2/4/17
5 weeks
35 days
FY16
$332.5
$5.4
$73.7
$84.5
$7.8
$0.0
$2.5
$30.8
$2.7
$0.2
$540.1
$332.5
$207.6
$540.1
Month
5 weeks
35 days
% of Total
$ Change
% Change
0.0%
$5.2
$0.1
-$65.6
$2.2
-$0.3
$1.1
-$0.1
$0.0
-$0.4
-$0.2
-100.0%
100.0%
-$58.0
-10.7%
61.6%
1.6%
38.4%
$5.2
-$63.2
-30.5%
100.0%
-$58.0
-10.7%
61.6%
1.0%
13.6%
15.7%
1.4%
0.0%
0.5%
5.7%
0.5%
1.6%
1.1%
-89.0%
2.5%
-3.4%
100.0%
-5.4%
0.1%
-13.0%
1/3/16-2/6/16
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MSLC Gross Sales Results
YEAR-TO-DATE FY17 vs. FY16 Unadjusted Non Fiscal Year
($ millions)
Through February 4, 2017
FY17
Instant Tickets
Mega Millions
Powerball
KENO
Mass Cash
All or Nothing
Lucky for Life
Numbers Game
Megabucks Doubler
Jackpot Poker
Total
69.9 to 80.4
Instant Tickets
Draw Games + KENO
Total
69.9 to 80.4
Unadjusted
50.0
50.0
70.0
55.0
70.0
60.0
63.0
55.0
50.0 to 70.0
$2,138.1
$42.8
$67.0
$543.1
$48.2
$14.3
$15.3
$197.8
$13.7
$0.0
$3,080.3
$2,138.1
$942.3
$3,080.3
Year
% of Total
69.4%
1.4%
2.2%
17.6%
1.6%
0.5%
0.5%
6.4%
0.4%
0.0%
100.0%
69.4%
30.6%
100.0%
6/26/16-2/4/17
32 weeks
224 days
FY16
$2,194.4
$37.0
$124.8
$542.0
$47.8
$0.0
$16.6
$199.7
$14.6
$1.4
$3,178.2
$2,194.4
$983.8
$3,178.2
Year
27 weeks
189 days
% of Total
$ Change
% Change
0.0%
-$56.3
$5.8
-$57.8
$1.1
$0.4
$14.3
-$1.3
-$1.8
-$0.9
-$1.4
100.0%
-$97.9
-3.1%
69.0%
-2.6%
31.0%
-$56.3
-$41.6
100.0%
-$97.9
-3.1%
69.0%
1.2%
3.9%
17.1%
1.5%
0.0%
0.5%
6.3%
0.5%
-2.6%
15.7%
-46.3%
0.2%
0.9%
100.0%
-7.8%
-0.9%
-5.9%
-98.4%
-4.2%
6/28/15-2/6/16
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January Instant Tickets – Sales Update
Hot 5s
Price Point: $1
7 Week Sales: $2,003,791
4 Leaf Clover
Price Point: $2
7 Week Sales: $5,597,680
$1,000,000 Hold ‘Em Poker
Price Point: $5
7 Week Sales: $18,386,895
$200,000 A Year For Life
Price Point: $10
7 Week Sales: $33,707,310
Power 7s
Price Point: $2
7 Week Sales: $5,838,706
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February Instant Tickets Release (Feb. 28)
$10,000 Bonus Cash
Price Point: $1
Top Prize: $10,000
$4,000,000 Bonus Cash
Price Point: $10
Top Prize: $4,000,000
$1,000,000 Bonus Cash
Price Point: $5
Top Prize: $1,000,000
$100,000 Bonus Cash
Price Point: $2
Top Prize: $100,000
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February Instant Tickets POS Advertising
Wobbler
11x17 Poster
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All or Nothing Promotion (February 19 – March 4)
From February 19 through March 4,
the Lottery will add an additional
multiplier of 2X to All or Nothing
Bonus.
Every non-winning All or Nothing
or All or Nothing to-go ticket sold
during this promotion period will
have a bonus chance to win $2,017.
On March 6, twenty (20) winning
promotional ticket serial numbers
will be randomly selected and
posted on masslottery.com.
8.5 x 11 Poster
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Lucky for Life Promotion (March 5-18)
From March 5 through March
18, players who spend $6 or
more on a single Lucky for Life
ticket (single drawing or multiple
advance draws) will receive a
promotional ticket for a chance
to win $2,017.
On March 20, twenty (20)
winning promotional ticket serial
numbers will be randomly
selected and posted on
masslottery.com.
8.5 x 11 Poster
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KENO St. Patrick’s Day Promotion (March 15-19)
From March 15 through March
19, every non-winning KENO,
KENO Bonus and KENO to-go
ticket will have a bonus chance
to win $2,017.
On March 20, twenty (20)
winning promotional ticket serial
numbers will be randomly
selected and posted on
masslottery.com.
8.5 x 11 Poster
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UMass Community Salute
The UMass Community Salute program, presented by the
Massachusetts State Lottery, honors individuals who have made a
significant positive impact in the UMass and greater Western Mass.
communities. Recipients are being recognized at UMass Men's
Basketball home games this season during in-game presentations.
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“Boston Bruins® Tickets” Social Media Promotion
Winner announcement on Twitter
Daily entry post on Facebook
5-day promotion from February 20-24. Two winners each day.
Winners received 2 tickets to Bruins game on 3/28.
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Social Media Messaging
Patriots win!
(Twitter)
New Bedford office signage
(Instagram)
Promoting Patriots
instant ticket
(Facebook)
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Social Media Messaging
Valentine’s Day
(Twitter)
Three $1,000,000 winners
from Berkshire County
(Instagram)
Promoting Wheel Spin event
(Facebook)
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Mass. Council on Compulsive Gambling PSAs
As part of our annual Holiday advertising campaign, we provided
the Mass. Council on Compulsive Gambling with some of our
bonus inventory that they were able to utilize to run PSAs on
radio stations across the state:
QTY.
VALUE
:30 spots
402
$18,956
:15 spots
217
$11,622
TOTAL
619
$30,578
March is Problem Gambling Awareness Month
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DCAMM Procurement
• Lottery headquarters has been at 60 Columbian St. Braintree
location for 22 years (no RFRs have been issued during this time)
• Current Braintree facility
o 99,168 square feet
• Office space
69,168 sq. ft.
• Warehouse/Distribution
30,000 sq. ft.
o Lease runs approximately $2.2 million per year
• Base rate ($15.02/sq. foot)
$1,489,000
• Electricity
$500,000
• Real estate taxes & operating expenses
$200,000
• Current lease ends 1/31/2019
• Seeking a 10-year lease, with 5-year option
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Procurement Team
• Lottery team
o Chief Administrative Officer
o General Counsel
o Assistant Executive Director (AED)/Operations
o Manager of Facilities
• DCAMM, Office of Leasing & State Office Planning Team
o Director
o Deputy Director
o Senior Project Manager
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Procurement Team
• Regular meetings with DCAMM began in September 2016
• Internal meetings have also taken place with all AEDs and
Departmental Managers to address present and anticipated needs
in the following areas:
o Head counts
o Number of offices and corresponding sizes
o Storage space, including secure storage
o Warehouse space
o Electrical and material handling
o IT Data Center
o Technology and innovation
o Talent acquisition
o Security
o Drawing Studio
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DCAMM Procurement Process
• Going through the procurement process will help ensure best
value for the Commonwealth, which is our main goal
• Multiple business models are being pursued, including:
o Maintaining a South Shore Regional Office that is retail
sales oriented
o A headquarters in the Greater Boston area that can
expand the pool for talent acquisition, particularly in the
IT, Technology, Product Development and Marketing areas
o A Data Center/Distribution/Drawing Studio facility
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Thank you for the opportunity to share this
presentation. We look forward to your
feedback and to further discussion on this
information, as well as other Lottery
initiatives.
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