February 2016 Volume 27 Issue 2 Retailers sell six months’ worth of tickets in one week On Jan. 13, the Powerball® jackpot reached a new record of $1.5 billion. Tickets sold in California, Florida and Tennessee each won one-third of the jackpot. The big jackpots got many players into the game. At least 2 million adult Minnesotans purchased at least one Powerball ticket in the four weeks leading up to the record jackpot, according to a survey. Ticket sales shattered records and Minnesota’s lottery retailers handled the huge spike in sales incredibly well. Minnesota’s lottery retailers helped generate more than $20.7 million for Minnesota from Powerball sales during the run to benefit the environment and to support state programs including education, public safety, roads and health & human services. Thank you, lottery retailers. Historic Powerball jackpot run facts The gigantic jackpots attracted attention from around the world. Two retailers located near the Canadian border and the airport were the top three Minnesota Powerball sellers for the record jackpot drawing. Sales for the Jan. 9 drawing topped $13 million, which was a new record. That new record didn’t last long because sales for the Jan. 13 drawing surpassed $19 million. Ticket sales for the jackpot run, which began on Nov. 7, were up 391 percent compared to the same time period last year. In the week leading up to the $1.5 billion jackpot drawing, Minnesota retailers sold 55 percent of what was sold in all of fiscal year 2015 for Powerball. 1 Raffle pays off big for retailers On Jan. 1, more than 4,000 winning Minnesota Millionaire Raffle numbers were announced, including two worth $1 million. The businesses that sell the $1 million winning Raffle tickets also win big because they earn a $5,000 winning ticket bonus and sometimes receive media attention. Since the Raffle began, retailers have earned a whopping $100,000 in winning ticket bonuses. River Country Co-op in Miesville earned a $5,000 bonus for selling a $1 million winning Raffle ticket. Manager Dave Rahmen commented that it was especially great because the winner was from nearby Welch. He said they had another fun surprise when KARE 11 showed up during the big Powerball jackpot run to ask some fun questions about selling all those Powerball tickets and to interview staff about the excitement of selling the $1 million winning ticket. Dave also noted that the $5,000 winning ticket bonus will certainly help to make their bottom line look great! According to a National Association of Convenience Stores study, 95 percent of lottery customers buy at least one additional item inside the store. Do not cash photocopies of lottery tickets Do not pay prizes on photocopies of tickets or photos on mobile devices. Do not scan, manually enter or cash anything other than an actual Minnesota Lottery ticket. Retailers that pay prizes on anything other than an official Minnesota Lottery ticket may be financially responsible when the real ticket is presented for payment. New ticket length The Lottery’s lotto games vendor recently extended the length of tickets and reports because some were not long enough to pull away from the printer easily. Prizes up to and including $100 must be paid The Lottery retailer contract states that retailers must pay all prizes up to $599 or as agreed to with the Lottery. Under current contracts, all retailers have agreed to pay prizes up to and including $100. Paying prizes is not only required, it’s good for business: Retailers receive a 1 percent cashing bonus for prizes up to $599 redeemed at their stores. Paying prizes means that customers have cash to spend in your business. Stores that have a reputation for paying prizes earn customer loyalty. We have heard some concerns about this change and will continue to work with the vendor on a better solution. The Powerball frenzy may be over (for now!) but the latest frenzy is just beginning. T he Frenzy family of games that launched Feb. 2 includes four games with different price points and top prizes so there’s a little something for all of your customers: $1,000 Frenzy is a $1 game with a $1,000 top prize $10,000 Frenzy is a $2 game with a $10,000 top prize $25,000 Frenzy is a $3 game with a $25,000 top prize Retailer t Spotligh The Lottery’s Top Sellers recognizes retailers for exceptional sales performance. Each of the businesses that made this month’s Top Sellers will receive $50 in free scratch tickets. Second quarter sales results for fiscal year 2016 compared to fiscal year 2015 (among retailers selling in both quarters): 2 There’s a new frenzy in town Scratch dollar increase: Lotto dollar increase: M & H Gas in Moorhead Micky’s Liquor Store in Minneapolis Dannecker’s Grocery & Liquor in St. Paul Clark on Rice in St. Paul Jeff’s Little Store Inc. in Rochester Shabelle Grocery in Minneapolis Holiday Stationstores Inc. in Rochester Little Burma in St. Paul MSP Airport Foundation in St. Paul Poppers Bar in Virginia Holiday Stationstores Inc. in Moorhead Kaposia Convenience Center in South St. Paul Kwik Trip #218 in Duluth Cub Foods in Brooklyn Park Bill’s Superette #7 in Andover Robbinsdale BP/Amoco in Robbinsdale Cub Foods in St. Louis Park Cub Foods (Phalen) in St. Paul Family Fare #107 in Moorhead Bill’s Superette #7 in Andover Scratch percentage increase: Lotto percentage increase: Dai Loi Oriental Grocery Inc. in Minneapolis Neisen’s Sports Bar Inc. in Savage Zup’s Food Market in Babbitt Poppers Bar in Virginia Wings Tavern & Grille in Owatonna Hatchery Bar and Grill in Lowry Teal’s Market in Albany The Filling Station Bar in Clarkfield 19 & 75 Filling Station LLC in Ivanhoe Elmer Goche VFW Post #3922 in Wadena Kwik Trip #218 in Duluth American Legion Post #259 in Shorewood Bronson Market in Lake Bronson Raceway Square in Brainerd Lakes 1 Stop in Lino Lakes Blue Line Sports B & G in Sartell Saigon Asian Food Market in Eagan Cedar Diffley BP in Eagan Union Hill Bar Inc. in New Prague Carlton Self Serve in Carlton Upcoming Top Sellers (schedule is tentative): March – Top two regional Raffle sellers Oct. 27, 2015 – Dec. 19, 2015 April – Top 10 sellers of Minnesota Platinum games #564 – #567 (combined) $50,000 Frenzy is a $5 game with a $50,000 top prize Make sure to display the point-ofpurchase materials, including the two-sided window sticker, counter stickers and ticket checker card, so your players will want to get in on the frenzy and play these new games. Capitalize on the sales potential of the Frenzy family of games by offering an in-store promotion. Contact your lottery sales rep for some fun and easy ways to boost sales and commissions for your business. Jimmy’s Food & Drink in Vadnais Heights Serving food, fun and drinks is what Jimmy’s Food & Drink in Vadnais Heights is all about. Jimmy’s offers an all-American menu and drinks and is known for their popular happy hour and daily dinner specials. So when owner Jim Proulx saw a Gemini, a stand-alone machine that sells both lotto tickets and scratch tickets, he knew it would be the perfect addition to his business. “It was an automatic sell for me,” he explained. “It’s marketed so well that I think being a merchant you have all the support behind it, which is really beneficial to any business.” The main driver behind offering Lottery was to stay competitive and give customers another reason to visit Jimmy’s. “There are a lot of options out there for people so anytime I can take advantage of offering a new service, I’ll take it.” Charitable gambling has been a huge draw for their customers and Proulx was confident that the Lottery would be the same. “It seemed like a natural fit for us,” he explained. “They really feed off one another.” It’s only been five months since Jimmy’s has sold Lottery but already has seen the benefits. Sales keep increasing as more and more players are discovering it. With the Gemini placed front and center as customers walk through the door, it’s always top-of-mind. “Our customers love that they can purchase lottery tickets in this type of environment,” explained Proulx. “They can sit and have a meal or a beverage and casually buy their lottery tickets without having to wait in line.” Proulx says Lottery tends to be popular with a variety of customers, including large groups. “You’ll have 10 to 12 people who will pool their money and buy scratch tickets. They love the instant winning without the wait.” In addition to the Gemini, Jimmy’s also has a terminal where players can purchase lotto tickets, which helped during Raffle season. “People came to the counter to purchase gift certificates during the holidays and they would see the Raffle sign and decide to add a ticket,” said Proulx. “That was cool to see. People really enjoyed that!” Lottery has not only been popular with their customers but for their staff as well. “It’s been fun to see people win,” said Proulx. “My staff were on board from the get-go because when our customers win they tend to tip more. Of course, the more they win, the more they spend on food or drinks so it has been a real positive so far.” their part. “It’s so trouble free for us,” Proulx explained. “That’s the beauty of it. Electronically, it all happens. “Sales keep getting better as time goes on,” he continued. “Every day, more and more customers are discovering that we have the Lottery. They love it—and we love it.” To help keep that momentum going, Proulx is looking forward to incorporating Lottery with their events and promotions, saying, “A place like this will work well for second-chance drawings and it’s a great way to drive sales and to get our customers coming back!” Adding Lottery has been a great business decision for them, in large part because it requires very little time and effort on Owner Jim Proulx is pictured next to the Gemini. Proulx brings 40 years of restaurant experience to the business—and has owned Jimmy’s for the last 15 years. Jimmy’s, located off 35E and County Road E in Vadnais Heights, also includes an event center that accommodates up to 500 people and is adjacent to a hotel, which turns this local hot spot into a popular destination for travelers as well. 3 Top prize winning ticket bonus Dragon Star Supermarket in Brooklyn Park, $500 Freedom Valu Center in St. Anthony, $5,000 Expressway in Lakefield, $1,000 Royalton EZ Stop #38 in Royalton, $5,000 Holiday Stationstores Inc. in White Bear Lake, $5,000 Byron Market Place Foods in Byron, $270 Holiday Stationstores Inc. in Champlin, $500 Gramsie Corner Market in Shoreview, $466 Kwik Trip #415 in Stillwater, $5,000 Sunshine Oil Co. in Blaine, $300 PRESORTED STANDARD U.S. POSTAGE PAID DETROIT LAKES, MN PERMIT NO. 14 Minnesota State Lottery 2645 Long Lake Road Roseville, Minnesota 55113 mnlottery.com Debbie Hoffmann, executive editor Marie Hinton, managing editor Emily Frost, editor Megan Kleinschmidt, graphic designer This publication is available in alternative formats to individuals with disabilities by calling (651) 635-8273, (888) 568-8379. 4 New Games February 23, 2016: March 15, 2016:
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