Commission Meeting for 9/21/2017
 


Time, Date and Place:

The 210th meeting of the Idaho Lottery Commission took place on Thursday, September 21, 2017 at 10:00 AM at 1199 Shoreline Lane, Boise, Idaho 83702.

Attendees:

Commissioners Present:

Chairman, Mel Fisher

Commissioner, Gary Michael

Commissioner, Susan Kerrick

Commissioner, Craig Corbett

Commissioner, Grant Brackebusch

Lottery Staff Present:

Executive Director, Jeffrey Anderson

Deputy Director of Marketing, Sherie MoodySt. Clair

Deputy Director of Sales, Larry Polowski

Deputy Director of Security, Amber French

Management Assistant, Jennifer QuinnoMiller

Public Information Specialist, David Workman

Chief Financial Officer, Jay Prickett

Others Present: Zeke Chemodurow, Intralot

Billy Mitchell, Mitchell Palmer

Tom Donahue, Mitchell Palmer

Ryan Belveal, Gamco International

Jeremy Pisca, Risch Pisca

1. Meeting Called to Order

Chairman Fisher called the meeting to order at 10:00 AM.

2. Approval of the Minutes

Commissioner Michael moved to approve the minutes from July 6, 2017. Commissioner Brackebusch seconded the motion. The vote was unanimous for approval.

Commissioner Kerrick moved to approve the minutes from July 20, 2017. Commissioner Michael seconded the motion. The vote was unanimous for approval.

3. Director Update

CLM Media Contract

Director Anderson reported to the Commission that we are recommending a oneyear extension with CLM for the Media Services Contract for the calendar year 2018 under the same terms we have in the current contract. They have done a great job for us with these services.

Commissioner Michael moved to approve a oneyear extension with CLM under the current terms for calendar year 2018. The motion was seconded by Commissioner Brackebusch. The vote was unanimous for approval.

Lotto America Approval

Director Anderson requested formal approval from the Commission to join the Lotto America game group. The Hot Lotto game is being retired because its performance over the last couple of years has not lived up to expectations. Hot Lotto is currently a cashonly, taxes paid jackpot. The Game Group decided changing to an annuity was not feasible, so it was decided we should retire the game and launch a new game, Lotto America instead. If approved we will begin sales on November 12.

Commissioner Kerrick moved to approve joining the Lotto America game group. Commissioner Corbett seconded the motion. The vote was unanimous for approval.

Intralot Contract Amendment Update

Director Anderson reminded the Commission of the previously approved amendment to the Intralot contract from July 20 and he reported that Intralot is fulfilling the new requirements. As a reminder, the original contract with Intralot included 325 DreamTouch machines and an additional 325 refurbished Winstation vending machines for use in the field. Once we got under contract and into development Intralot offered to eliminate the offer of 325 Winstation vending machines which would require two software platforms, two hardware platforms, and other things to manage. Instead of having DreamTouches and Winstations, the amendment negotiated removed the Winstations and allowed for the addition of more DreamTouches. Both parties were in favor of this amendment and it is going as planned.

Tribal Gaming

Director Anderson was contacted by representatives of the ShoshonePaiute tribe who are interested in acquiring land in Elmore County for the purposes of establishing tribal gaming operations. Before continuing down the long and complicated process, the Tribe was interested in knowing if the Governor might support or be in approval of this plan. Director Anderson explained the Tribes plan to the Governor’s Office and he awaits their response on what the Governor’s opinion might be before they plan to move forward.

4. Quarterly Current Sales Report

The Quarterly Current Sales Report is entered into the minutes as an attachment.

5. Security Division Update

Deputy Director French reported that she recently had a meeting with UPS who is seeking more of our shipping business at our Warehouse. We do use UPS for much of our shipping but in the past they have been unable to do nextday shipments to Northern Idaho. However, they have recently added a daysort and can now do overnight deliveries to the north. Given this, they now feel like they can compete better financially and have asked us to look at it. In the past they have been unable to compete with Hot Shots but now they might be able to do it.

We have seen a recent increase in burglaries with our retailers. Just in the last week, the Lottery has helped solve two of those burglaries which we love to do.

6. Marketing Division Update

Deputy Director MoodySt. Clair reported that PacMan is now on sale which was our big Fair Season Scratch Game promotion and has been doing really well. We are getting ready to kick off our $1 Million Raffle, building upon the success of last years’ Raffle which sold out before Christmas and we are hoping for that again. We have lots of promotions to help it along the way.

She detailed a new large initiative to upgrade our digital experience to our customers. With that we have issued a request for bid to redo our main website which includes Idaholottery.com, our game center and our mobile site. We hope to have a proposal ready for Commission approval in November.

Last, she reported that she has just returned from a Vision Critical conference showcasing a new research platform in the market that we are getting with the Epic Upgrade. We are very close to getting our platform up and running and a few weeks out from opening our recruitment for the research communities. We will have a couple communities with different player types and one with retailers. We think this will be a great resource for us and look forward to updating the Commission on the results going forward.

7. Sales Division Update

Deputy Director Polowski reported that the Epic Upgrade is approaching the end and should be wrapping up soon. The machines look great in the field and we have great reception from the retailers.

Walmart stores will be coming online in midOctober. We are putting Lottery into 11 locations throughout the State, three neighborhood markets in the Treasure Valley and eight fuel centers around the State.

Unfortunately, one of our long term employees, Kim Hill (formerly Mathison) our Corporate Accounts Manager will be retiring midDecember. We are currently recruiting to fill that position and will begin doing interviews in the near future.

8. Set Future Commission Meeting Date

Commissioner Michael moved to set the next Commission Meeting for Thursday, November 16, 2017. Commissioner Brackebusch seconded the motion. The vote was unanimous for approval.

9. Adjournment

Commissioner Michael moved to adjourn. Commissioner Kerrick seconded the motion. The vote was unanimous and the meeting was adjourned.

Certification:

I hereby certify that the foregoing minutes are a true and correct record of the actions and decisions made by the Lottery Commission.

Jeffrey R. Anderson, Executive Director

Lottery Commission Secretary