ALC-Lottery Oversight Subcommittee
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Senator Joyce Elliott
Unverified
7:00
Good afternoon everybody. After so much encouragement
from my, so much encouragement from my colleagues who are just ready to do business. Colleagues who are ready to do
business. They're getting that they're getting it together over there um so i'll call this meeting to order and you might
notice that we have a new staff person here uh so i'll ask you just to introduce yourself and just say a little bit
Melody Breeding
Unverified
7:41
about you push that microphone in my name is melody breeding and i started about a month and a half ago with committee services
Speaker 7
7:48
and i'm excited to be here and i've had wonderful uh staff helping to train me so here we
Senator Joyce Elliott
Unverified
7:55
go and by a luck of the draw she ended up on the lottery with the lottery committee so welcome y'all are so don't be slow
this afternoon i'm doing my best i'm tired um so the meeting is called to order and i don't have any comments any further than anything i've already just said and so we will go ahead and get started with Mr. Woosley. You're ready to
Speaker 10
8:30
give us an update. Thank you, Madam Co-Chair. Good afternoon. Melody, welcome. I look forward to working with
Speaker 11
8:38
you. As always, I'm sorry, Bishop Woosley,
Speaker 10
8:40
arkansas lottery director as always we'll just start with our comparative income statements and and if any of you are new please stop me in the middle if you have any questions i welcome those all right we start with our comparative income statements for january of 2020 versus january of 2019 as you can see at the very top from an instant game standpoint we finished about six $600,000 down versus last January, and I would blame that primarily on the fact that it was
just really, really nasty and dreary most of the time during January. Believe it or not, when it's cold and rainy, that has a pretty big impact on our sales. People just want to go home and get under a blanket and get warm, and you see that. So we had about two or three weeks of weather during the week especially that was just not all that good. So that was a hit on our sales for sure. The good thing is is that Powerball grew to over $300 million during that time during the month and so we for the first time really almost all year we had a nice multi-state jackpot which
helped increase our sales and as a result we finished about $830,000 up in draw games for the month and which resulted in total revenues being up $227,254 versus the same January of last year which I believe, I can't remember what I told in Mr. Wickline's article, I think that was our second or third best January that we'd had in the history of the lottery. So a good month. Ultimately, our net proceeds ended up being about $390,000 more than they did the last January,
and as a result, it was mostly from the draw game revenue, which if anyone, those of you who come here often, you understand that we make a little bit more off of the Powerball and Mega Means game, So when we have a big jackpot, we end up having a very good month from a proceed standpoint. January of 2020 versus budget. Again, instant games were down versus where we anticipated being in budget. And again, it's almost identical to what we were down versus the same time last year. So I would still state that the weather was just not our friend during that month.
Again, the good thing is that the Powerball jackpot was higher and it increased our draw game sales for the month. We love it when our draw game sales increase because obviously we make a little bit more off of that. So from a budgetary standpoint, we finished about $150,000 down versus where we anticipated being. $150,000 is a lot of money, but from a lottery perspective for a month, that's really not that much money to differ from your budget. so we consider that to not not be all that much from a net proceed standpoint again we finished
about 1.6 million more than we anticipated versus budget we'll go back to draw games again to be one of the things that contributed to that as well the next slide is our comparative income statements for january 31st 2020 versus where we were the same time last year january of 2019 as you can see our instant games for the year are up a little over two million dollars which anytime we have instant games being
up that's a great thing our past two previous fiscal years have been instant ticket record years so the fact that we're up two million dollars versus two previous record years and instant tickets is a very good thing if you're ever looking at our income statements the thing that we can control to some extent is our instant ticket game sales we put those out they have to go in the bins in the retail we have to market those we have a lot more control over the success of those games so when instant ticket games are up that's really a good indication of the health of
a lottery and so we're very happy that we are where we are in instant ticket games for the year As a matter of fact, this is so far the best instant ticket year we've ever had in the history of the lottery. So very pleased where we are. Then right under that, you see the big red number, which is $21 million down in draw games. For those of you who have come to this committee often, you recognize that when we have a big jackpot, and by big, I mean $500 million or more during a month, that can make a significant impact on sales one month versus another.
so last year in October we had a mega means jackpot of 1.5 billion dollars which is the only the second jackpot in the history of the lottery world that whatever went over a billion dollars at the very same time we had a 700 million dollar powerball jackpot which is probably the second or third highest powerball jackpot that we've ever had we've never had anything like that at the same time so that was great last October when you start comparing this year versus what happened last year you see a 21 million dollar difference in draw games
for the month of october we sold in about a two-week period about 20 to 21 million dollars of powerbond mega millions in about a two to three week period and that is the difference of this year versus last year and every other game almost we're up but when you have a 21 million dollar difference in powerbond mega millions it looks like well it's not a good thing, but it looks like a very bad thing. Hopefully, we'll have some luck for the next five months in this year to where the Power Bar Mega Minions jackpot may get up to a number where
we can make up some ground from that standpoint. Interest rates have been very low over the last year, and interest rates will generally drive the amount of the jackpots, and so when jackpots are low player apathy kicks in and we just haven't had a lot of luck this year uh with our powerball and mega means jackpot so sometimes you win sometimes you lose with those there's not much you can do to control those from from a favorable unfavorable standpoint for net proceeds at the bottom there versus same times last year excuse me we're down about 8.6 million dollars um down
about 8.6 million dollars versus the best year we've ever had the lottery so that gives you any indication of what type of impact those have. That $8.6 million, we generally make about 40 to 41 cents off of each dollar spent on Powerball or MegaMe. And so if you take that $21 million, somebody's good at math, and divide that or take 41% of that, that is literally almost, I think it's $8.6 million of that came from those two jackpots during that time period. So that is the delta in this equation.
So, like I said, hopefully we'll see a change in those jackpots, and maybe one of them will grow to some significance before we get through the end of the fiscal year. Actual versus budget, again, we're up in instant ticket games, about $3.2 million versus where we anticipated being, which is, again, a good thing. We anticipated being kind of flat in instant ticket games, but we've had an excellent year. Draw games were down about $6 million from where we anticipated being. Again, Mega Millions and Powerball have had a very bad year as in comparison to just about every other year.
I'll have a slide here in a minute to show you every other year we've ever had. So, again, we're hoping to see some changes there. The effect of Mega Millions and Powerball performing as they have is that our net proceeds are less than they were or than we anticipated for budget. They're about $3.6 million under where we anticipated for budget for the year. Madam Chair, he had asked for
Senator Jimmy Hickey, Jr
Unverified
16:11
us to stop him in between. Do you want us to do that, or do you want us to wait until the end?
Senator Joyce Elliott
Unverified
16:18
It's fine if you do so on the spot. Do you have a question right now,
Senator Jimmy Hickey, Jr
Unverified
16:22
Senator? Yes, and I don't know if this will be the appropriate time or whenever Camelot comes up,
and I appreciate all these reports. This particular one is the one that I will have the most question on, just the comparative income statement as it is to our budget. So do we want to talk about it now or do you want to wait to talk about it at the end or both? Happy to right now, Senator. Okay, all right. Well, this is the one that was concerning to me back in November whenever
I actually requested Camelot to come. Give them all credit at my request. I did talk to Mr. Scrimshire here a week or two ago.
Time gets away from me. But this is the one that concerns me because
I understand the actual, I understand the power ball. But whenever you're developing the budget, you're taking into account, I assume, those extremes. So if we had had an extreme amount of revenue that come from some Powerball that was bigger than it had ever been, you're not just taking those and saying, well, we're going to put that in as the budget. You're adjusting for that and making a budget that you believe is realistic that we should meet based on trends for years, I would hope, or I would assume?
Absolutely. Okay. And that is where I do have a little bit of confusion right here because, you know, I always want to make sure that we're meeting budget. And it does look like to me that since November, you have narrowed it a little bit, but we're still down. If I remember right, according to this sheet, we were down $4.1 million for five months ending,
and I guess this is going to be seven months ending, maybe, June 30th to then.
But we're still down $3.6 million, and if we don't get back on another trend from a budget standpoint, that's going to be a larger number. Yes, let me skip.
Speaker 31
18:19
I had one slide, and maybe it will help. so we're down
Speaker 10
18:25
about uh three point i'm sorry three point six million versus budget where we anticipated being from a net proceed standpoint and as you can see uh when you add in unclaimed prizes we're down about 1.4 million for the year okay
Senator Jimmy Hickey, Jr
Unverified
18:38
how much how much how much does does our
unclaimed may i continue madam chair i'm sorry i didn't mean but mr woosley
Senator Joyce Elliott
Unverified
18:46
would you uh make sure the committee we can see that number up there just barely what page you're on so the committee can keep up without flipping back
Senator Jimmy Hickey, Jr
Unverified
18:57
and forth. Okay you may go ahead Senator. Unclaimed prizes do we keep a million dollars in that account every
year is that what that was and then we we actually take in whatever's over that as revenue correct? Yes sir we're
Speaker 10
19:08
required by statute to keep a million dollars in that account. And where
Senator Jimmy Hickey, Jr
Unverified
19:12
are we at right now on unclaimed prizes?
We're at about $6.1 million. Okay. Are you already
in the 3.6? You're not taking that into an account? No, sir. Okay. So what does our unclaimed prize amount, what has that averaged over the last three or four years? And I'm not holding you to it. I'm just trying to get an approximation on how much we have actually put into GR, for lack of a better word, are put into our revenue
or our proceeds, excuse me, that we put
into our proceeds at the end of the year? You'd have to say the
Speaker 40
20:00
average is about 1.5% of sales. We're a little
Speaker 10
20:06
high this year. What does that equate to? Last year we were 517 million and I think
Senator Jimmy Hickey, Jr
Unverified
20:11
or unclaimed, we're around six, if I remember correctly. All right, so you're talking, we're talking about $750,000, $800,000 there,
or what are, you said one point what of sales? About one and a half percent of sales. Okay, it's what you think goes into net proceeds? Yes,
Speaker 10
20:29
sir. At the end of the year, we average about one and a half percent of sales that goes into unclaimed prices for net proceeds. Okay. And the reason we show it like this is because we technically cannot deposit unclaimed prizes until june so you you see that 3.66 deficit which doesn't include unclaimed prizes and then the next slide includes them to show you what it will actually look like
at the end of the year if we
Senator Jimmy Hickey, Jr
Unverified
20:55
continue the current trend which would put us which would put us below budget currently as of january 30th at 1.4 yes sir okay all right so it has narrowed quite a bit since the
Speaker 10
21:05
November. We hit a nice lick in January, about $2.1 million to make up, and like I said, that's what a nice jackpot will do
Senator Joyce Elliott
Unverified
21:16
for you. Okay. All right. Thank you, Madam Chair. Mr. Woosley, would you clarify? You said you
cannot count the 1.5 percent. Was that the 1.5
percent you were talking about until June, or is that the
Speaker 49
21:30
amount you were talking about? We account for it every month, and unclaimed prizes
Speaker 10
21:36
are accrued every month because we have gains that end every month. However, and I'll be honest with you, I don't remember why the statute was changed to this, but in the previous years, probably the first five years of the lottery, if we got $200,000 worth of unclaimed prizes in January, that went into that amount that month. And for whatever reason, about four or five years ago,
the statute changed to where we don't deposit it into the account where it's not counted towards our proceeds total until June okay and so I don't you know if if we didn't show you what we have all year long everyone would be very frightened and think oh my gosh right this is really bad and when you look at it you know
Speaker 34
22:18
without it it's 3.6 and then when you add the we just have
Senator Joyce Elliott
Unverified
22:23
to remember to do a self-calculation
Speaker 34
22:25
and that's why that's what this last slide always is is to show
you with with our money this is where we actually
Speaker 10
22:32
stand so i think i budgeted about 89.3 uh and if we continued on this trend we'd finish at about 88 87.9 or something like that okay so that a little bit more accurate depiction i apologize it's just the way the statute reads to where we have to account. And I'm, I don't, I don't, that's one of the things I don't remember. I don't
Speaker 39
22:51
remember why it changed. Oh, I don't know. Maybe
Senator Joyce Elliott
Unverified
22:54
it has something to do with the fiscal year ending then. It could be. Does anybody else have a question about this? Senator Hammer.
Senator Kim Hammer
Unverified
23:01
Thank you. Mr. Woods, let me ask you in another way. Do you, do you rely on the unclaimed prize money in order to make up the shortfall in your budget? We account for about one to one and a Refresh my memory of what the law says about at the end of the year, you sweep that account down to a million? All
Speaker 17
23:25
goes down, yes. All except for a million dollars goes into proceeds. And what happens if when it comes
Senator Kim Hammer
Unverified
23:31
time to sweep, if you're counting on it as part of your budget or to make your budget,
what happens when it comes time to sweep it and you don't have enough to make up the difference in your budget, but you can't go below the million? or is
Speaker 10
23:51
that a possibility it that it would just be less than budget if we didn't have the full 89 it would be 1.4 million less than what we anticipated
Senator Kim Hammer
Unverified
23:59
does that ever happen before i can't remember in history in the past is
Speaker 15
24:04
it have we ever finished below our proceeds budget yeah yes sir yes sir okay all right thank you all
Senator Joyce Elliott
Unverified
24:10
right any other questions anybody if if not mr woosley you
Speaker 34
24:14
may proceed. I'll skip ahead to the slide that Senator Hickey and
Speaker 10
24:22
I were talking about, but this ADHE transfer analysis, which is page six, is the reflection of where we stand with all considering all money that is available to the lottery at this point. So you can see for January 2020, we had budgeted about $7.1 million in the actual transfer, including unclaimed prizes of about a million dollars uh was about 2.13 above budget which narrowed that gap dramatically from
about 2.5 to 1.4 million uh so from that standpoint we had a there was a large month in unclaimed prizes and there was a a good month from a proceed standpoint for scholarship so at the end of the day we're about 1.4 million under budget at this at this point so if we continued this trend and where even the remainder of the year we'd end up somewhere around about 88 to 87.9 or so million dollars for scholarships because we had actually budgeted about 89.3, I believe.
Speaker 31
25:21
The next slide just gives you an indication
Speaker 10
25:24
of how things have progressed over the last year, and it's a lot of information, but this slide, which is page 7, shows you instant ticket sales for the last six fiscal years at the end of January for each fiscal year. So I want to give you an idea of what type of improvement we've seen in sales since FY15. If you look at FY15 down at the very bottom, at January, at the end of January in FY15,
our total instant ticket sales were $185 million. Flip all the way over to FY20, if you go down, our total instant ticket sales so far in FY20 are $234 million. So in a six-year time period, we're $50 million better than we were six years ago. That gives you an indication of the growth of the lottery and how well it's done. If you look at FY20, FY19, and FY18, you'll see FY18 and FY19 were record years for instant tickets
and were, again, about $2 million ahead of those years. So from an instant ticket standpoint, best year the lottery's ever
Speaker 17
26:31
had. Now, I'll show you the other side of the coin. This is, to Senator Hickey's question and Senator Hammer's a little bit, this is a slide which shows
Speaker 10
26:44
you the volatility of draw game sales. So last year we had, I believe, the best draw game sales that we'd ever had in our history.
I think we finished at about $107 million. dollars as you can see look at power bar mega means any of those top rows and you can see that at any given time of the year a single jackpot can boost those sales by millions of dollars and so far this year we're we're over the worst draw game sales that we've had in probably the last six years not probably in the last six years and the majority if not all of that is power bond mega millions so by comparison right now we've sold 9.9 million dollars worth of mega millions
tickets at this same time last year we sold 24 million and that is a result of one jackpot in a two-week period in october of last year that shows you how things can turn on the dime this year in powerball we've sold 13 million same time last year we'd sold 19 million you take that number and you divide it by 41 cents out of every dollar and that gives you an idea of the effect of that on proceeds. So the point of this slide is just to show you how volatile these things can get. And the answer to your question, Senator Hickey, is no. We try and use
a historical average to budget for our draw games, and we certainly throw out high numbers and don't account for that. We try to be very conservative in our budgeting from that standpoint. For this very reason, you just can't count on them. So some years we look like we're geniuses, and some years we don't look all that smart and a lot of it is things out of our control but the muscle group which is the group that handles powerball we're actually meeting at the end of march to talk about potential changes to the game which may improve the game that may be draw frequency that may be
changing the price structure that may be changing the price point and i'll report back once that's done obviously to this committee and hopefully that will help us i
Senator Jimmy Hickey, Jr
Unverified
28:46
have one more yes sir I want to make sure I understand this. Senator, and if anybody
Senator Joyce Elliott
Unverified
28:51
else has a question about this part, would you just get ready so we can move along? But you may go ahead, Senator. Thank
Senator Jimmy Hickey, Jr
Unverified
28:57
you, ma'am. So I want to make sure that myself and everybody, how much did we actually budget for this year for draw, for the draw games?
Because whenever I go back here and look at the comparative income statement, It's year-to-date January 31st, actual versus budget is the sheet I'm looking at. And we've got budget at $51,741,000. I think we budgeted around $89,000, and I'll make sure
Speaker 10
29:26
and get you that and make sure I'm correct. $89,000. $89,000 total, yes, sir. $89,000. $89,000. For the year.
Speaker 38
29:39
Okay. Last year we were about $107,000, I
Senator Jimmy Hickey, Jr
Unverified
29:42
believe. Okay, and for the draw games, which sheet is that? It's
the next to the last. Eight. Okay. So I guess let's just use your $89 million. So can we put that slide up there to make sure that we're all
looking at the right one? So we've got draw sales comparison, fiscal year date as of January 31st. Is that right?
Yes, sir. Okay. but these aren't for the total year. Do we have one that's for the total year on
Speaker 17
30:18
the draw? No, sir. This is where we are at the end of January for each fiscal year for the last six years to kind of give you
Speaker 40
30:27
an apples-to-apples comparison. Okay. To be honest with you, I'd
Senator Jimmy Hickey, Jr
Unverified
30:32
like to see what the actual – since just draw games, I'll be honest, I don't want to convolute it with a bunch of stuff they have to go through.
But what I would like to see is what our total draw sales was so that I can
see how we budgeted it. Because if you've budgeted $89 million, I want to see if that's a midpoint in comparison to the trends over the years or if we've taken the high or what. Because I don't like being behind
budget. I understand all the stuff. And I know you don't either, Mr. Woosley. And I'm not saying you aren't doing a great job. It's just our part.
We're lottery oversight, and we have to always try to knock the top out. But I just want to make
sure that whenever we are not meeting budget and you have narrated, I want to see why that is. And if we've budgeted too high. Our total sales last year for draw were $107 million. We budgeted
Speaker 10
31:34
at 89, I believe, this year. I'll get you. It may not be 89, but I believe from top of my head, that's what we budget.
Speaker 47
31:44
Okay. All right. Thank you. Thank you, Madam
Speaker 10
31:46
Chair. We recognize last year was an anomaly and tried to, but again, we're under. So I certainly get the question. Thank
Senator Joyce Elliott
Unverified
31:56
you, sir. Again, and the last. We have questions. Representative Dotson.
Representative Jim Dotson
Unverified
32:03
Thank you, Madam Chair. Looking back between slide 7 and 8 here, on your instant sales, and then I think I'd heard
you say something on your draw sales, you divide it by, was it 41%?
Speaker 17
32:16
Mega means in Powerball, our profit is about 41% on the dollar. 41%. What is
Speaker 34
32:21
it on the instant sales? It depends on the price point. I think it ends up coming out to maybe about 26%. 26%? is it is
Representative Jim Dotson
Unverified
32:31
it you said depends on the price point is it more or less the like the dollar versus the 10 or 20 dollars yes sir so 20 dollar obviously pays out quite
Speaker 10
32:41
a bit more and and the the sales trends have moved towards our fives tens and twenties in the last five years five tens and
Representative Jim Dotson
Unverified
32:51
twenties what what's what's the average I mean you say it pays out a lot more what's the Average 20 is
Speaker 39
32:58
probably about 79 to 79.5. Average 10 is probably somewhere in the 76 to 77 percent range. A 5 is probably somewhere in the lower 70s, maybe 71. Okay. And I'm ballparking, so
Speaker 34
33:11
I can get you definitive. If you can give me the Zachary gun, that would be great. Thank you. Senator Hammer.
Senator Kim Hammer
Unverified
33:21
Thank you. Bishop, are you accounting in your budget numbers that you're talking about? You talked about whenever there's a big lottery to win that the numbers go up, but are you factoring in with the casinos that are now opening up around the state that you're going to factor any adjustments
Speaker 94
33:41
to your budget for that? We did. You know, we anticipated some drop. We knew that, say, a Saracen
Speaker 17
33:47
and an Oakland wouldn't be full-fledged, like Saracen won't be full-fledged I don't think until June. Obviously, they're selling right
Speaker 70
33:53
now in a room there with about 300 slots in Pine Bluff,
and that Oak Line wouldn't be full-fledged, I think. Mr. Woosley, would you
Speaker 96
34:00
move back to your mic? I'm sorry. Okay, sure. Yes,
Speaker 34
34:04
sir, we did account for it. But, again, it's us guessing because you just don't know what the sales are going to
Senator Kim Hammer
Unverified
34:10
be. It may seem like a silly question, but like the Powerball and the Megas and those that are on the draw sales, Do you see that any other states that are involved in this have ever considered dropping those because they just aren't profitable enough, or is that part of the ongoing discussion about which ones are worth keeping
Speaker 10
34:27
and which ones are getting rid of? I've never heard of a state considering dropping Powerball or Mega Millions. No, sir.
Senator Joyce Elliott
Unverified
34:40
All right. Thanks. Any other questions? Mr. Lusa, would you clarify for me? Maybe I've missed it and you said it, But when you have such an anomalous year, like a huge Powerball, how do you factor, when you build a budget for the following year, not knowing what's going to happen, how do you factor that into the budgetary process?
Speaker 10
34:59
You know, instance are, I'm not going to say easy, but they are consistent and they're a lot more, they're a lot easier to budget. You try and take the anomaly years out, frankly. Okay. But, frankly, the last two years for draw game sales have been crazy, and you don't know whether or not this is an indicator of what's going to continue to happen or this is just anomaly. So the last two years we had great draw game sales, Powerball and Mega Millions.
And the jackpots last year, in one of Mr. Wickline's articles, I laid out the Mega Millions and Powerball jackpots that had happened up until this point of the year versus the Mega Millions and Powerball jackpots that had happened up until this point this year. And they weren't even close to each other. I'm not talking about one was $800 million versus several $300 million. We've had Powerball get hit at $70 million, which $70 million is a lot of money. Don't get me wrong, but when Powerball gets hit at $70 million, that's a catastrophe for us
because then it resets and takes so long to get back. So the answer to your question is we try and take out the high and take out the low. We've got a 10-year average. We've got a pretty good indication of what the average is going to be, but you don't budget too high because, frankly, you may have a year like this where there's just not any jackpots. And then we've got five months left in the fiscal year, four and a half. We may have a Powerball jackpot that gets to $800 million, and suddenly we're all right with the world. You just can't count on them. So we try and do the best with what we can control,
Senator Joyce Elliott
Unverified
36:36
which is basically everything but the multi-state game. So one
of the things I've always had a concern about, you know, the whole lottery process and scholarship allocations and so forth, this just seems to be endemic to what it means that you're trying to govern in some way a lottery. I mean, to me, it's just the definition of the word should tell us some things like you're not going to be able to predict you can have a budget all you want to. and we can pretend that we're controlling things and we know we're not but I think we should all
be prepared for look up the definition of lottery and then not expect things to be constant that's one of the worries I've always had about trying to have a constant amount of money for scholarships because we don't know what we're talking about I may be overstating it to say we don't know what we're talking about but that's something I
Speaker 34
37:32
think we really need to get a grasp I'll say this much. I think that's
Speaker 10
37:38
a good point, and I'll give this committee kind of a perspective. In FY 2014, our proceeds amount was $72.4 million.
That was the low point for the lottery. Last year it was $98 million. That gives you an idea of how big it can ship. Now, we've done better, and we've improved, and it's great, and I think we'll continue on that path. But if you think about it, you know, we're worried about whether or not we're going to make 89. I'm worried about it. But it's $17 million more for scholarships than it was six years ago. So that just gives you an idea of the volatility. And hopefully we're never going to get back in the 70s, and hopefully we're never going to get back in the 80s. But, yes, it is. It's a very difficult process to tell you exactly what I'm going to make every year because you just never know.
Senator Joyce Elliott
Unverified
38:25
But we try our best. Okay. Any further questions? Senator Hickey? I apologize, Madam
Senator Jimmy Hickey, Jr
Unverified
38:30
Chair, but I'm going to have to comment on that. I agree it's a volatile business. There's many volatile businesses across the United States. But here's the thing. Most any time that anybody budgets, and we all know this, budgets are done in
a conservative fashion, and that's what worries me with this a little bit. And they've made up, and I expect hopefully it's going to come around. but we almost have to
anticipate that that budget was done hopefully or I would assume because we
all know how everybody is that that budget is already backside of what they were anticipating making so if we're short that really runs up a red flag a red flag for me on that part so in addition to that we got
some capable people that we're paying down there that run that with Mr. Woosley and then we've also brought in Camelot who is down there which is also rightfully so making money to run this thing and that's why I just want to make sure that we're maximizing that
100% so I want everybody to kind of understand this budget this actual versus budget
why that's why that's a little bit of a red flag to me even though they've narrated here in the seven months ending instead of the five months from where
Speaker 35
39:51
it was, but that's why I've been concerned just a little
Senator Joyce Elliott
Unverified
39:56
bit. Yeah, that makes sense, and you know, you and I have a continuing conversation about this, even if the
rest of the committee does not. We do. Thank you, ma'am. Okay,
Speaker 116
40:07
Representative Love. Thank you, Madam Chair. Mr. Woosley, when you went back to 2014, I started thinking about some things we're
Senator Joyce Elliott
Unverified
40:18
in trouble now we're in trouble now you started thinking
Speaker 30
40:21
about i have long-term memory loss i don't
Representative Fredrick J. Love
Unverified
40:24
remember i'm kidding no but i wanted you know because you said you gave two figures you said we're making about 98 and now we're hoping to get back to 89 but you stated a figure of 72 million back in 2014 how many more scholarships are we giving
Speaker 39
40:38
with that amount of money i'm gonna throw it over the fence to dr markham on that i don't know the answer that we don't do the scholarship so well
Speaker 120
40:50
she may be able to answer that when she
Representative Fredrick J. Love
Unverified
40:53
comes one thing is we're always talking about the funding but i want to know how many more scholarships were given because i know that uh in between that time we put a a you know a qualification that it's not the 2.5 now it's just the 18 or 19 or or whatever but i want to know how many more scholarships were given with the increased funding.
Speaker 39
41:13
Representative Love, we don't have those numbers at the lottery, so I will pass that to
Senator Joyce Elliott
Unverified
41:18
the Department of Higher Ed. Representative Love, would you like to see a trend over a number of years? That's
Senator Jimmy Hickey, Jr
Unverified
41:29
what I'm lying. Okay. Okay. Thank you. Madam Chair, may I jump in one more time? You certainly may. Sure. No, you won't. If we are going to get those numbers, we do need to
remember one thing. It's not just the scholarships that are going for the two to four. We've also put in the workforce scholarships, which we need to take into account.
And this body also had passed, and money that's coming out of that is also paying for those concurrent credits that Senator Sturge had run that bill. So we also, if we're going to get that piece and compare it from something before, what we need to remember is we're not going to be comparing apples to apples. so we need to get that whole picture. I agree with that. Thank you,
ma'am. Sure. Okay. All right. You may finish. I think I was at
Speaker 10
42:17
my last slide, which, again, is just trying to give the committee a comparison
of how the money flows from year to year and where we were six years ago versus where we are today. Again, you can see the disparity in draw game sales and things of that nature. So, again, we'll continue to report back, and hopefully the next time we show up, we'll have had a nice jackpot. But this is kind of where we stand versus where we were in the past year. So I'm happy to answer any questions, if anybody has any.
Senator Joyce Elliott
Unverified
42:50
Any further questions? I've got one. Okay. Senator Stubblefield. Thank you,
Senator Gary Stubblefield
Unverified
42:56
Madam Chair. Bishop, have you considered how the effect, should this proposed amendment pass, allowing
these slot machines, these 15,000 slot machines, to be distributed throughout the state? Have you factored that in? Not into this year's budget, no, sir, because
Speaker 132
43:13
it didn't really exist. Do you know how that would
Speaker 133
43:16
affect the lottery? Do you have any idea at all?
Speaker 34
43:22
Well, yes, I do. How would it affect the lottery? I can go
Speaker 39
43:35
on other states. Senator, I haven't really been given approval to comment on this. I'm going to comment in the morning.
Senator Joyce Elliott
Unverified
43:42
Can I? Wait, wait, wait. Hold on one second. What do you mean by give
Speaker 34
43:45
approval? I don't want to give a position on the proposed amendment until I have approval from my boss. I understand.
Speaker 15
43:53
I think it will impact. Yes, sir. Okay. I'll, if I can say that much, I'll get myself in trouble. May, which
Senator Joyce Elliott
Unverified
43:58
boss are you talking about? Clear this up for now. I have a lot of
Speaker 97
44:02
bosses. I have the governor. That's why I'm asking which boss are we talking about? I have
Speaker 34
44:07
Secretary Walton. I have 135 senators and representatives. So I just want to make sure I have authority to say something for
Senator Joyce Elliott
Unverified
44:13
us. I'm trying to figure out from whom do you have to seek authority? Is it
Speaker 100
44:18
us? No, ma'am, from my boss. The governor. Yes, ma'am. The governor. Okay. I just want to make sure I'm okay.
I just want to get that clear. I do
Speaker 142
44:26
have an opinion on it. You have already taken a stand as being
Speaker 15
44:31
in opposition to it. Arkansas Lottery has not taken a stand? Not
Senator Joyce Elliott
Unverified
44:36
as of yet, no, sir. Okay. Thank you, Madam Chair. And why is it an issue? What's going to determine when you and your boss are going to talk about what the effects may be? I'm not quite understanding this. Other than I understand you have a boss. I get that. I think it's tomorrow morning.
Speaker 9
44:55
Okay. Sorry. I don't want to tough off into anything and say something that's
Senator Joyce Elliott
Unverified
45:02
it. We'll give a position tomorrow. That hole could be real deep by tomorrow, but hey, let's go. I understand. Are you finished, Mr. Woosley? Any other questions,
members? Yes, ma'am. If I don't have any questions, I'm happy to step aside. Okay. Thank you so much. Appreciate your report. Members, the next item on the agenda, if I can get my
agenda back in front of me right now, are the people on the way up here. um we are on uh item item e uh item d yeah i skipped one the disclosure reports okay
are you going to go ahead and see do e while you're up there let's see yeah we'll
Speaker 143
45:42
go ahead and do it all all right if you'll introduce yourselves please for the record thank
Nick Fuller
Unverified
45:49
you madam chair i'm maria markham director the division
Speaker 146
45:52
of higher education i'm nick fuller i'm the deputy director at the Division of Higher Ed. And I'm going to ask Mr. Fuller to present most of what we have, but I did want to address Representative Love's question. It's actually our first handout. We have a history 2013 to 2019 on both the total number of scholarships awarded
and the amount spent. I would point out that we hover between around 32,000 and 34,000 awards annually. But during this time, we have changed the criteria for eligibility. Also during this time, we have not reduced the number of awards based on funding. It's been a product of student eligibility. So all eligible students have been funded.
Senator Joyce Elliott
Unverified
46:40
Does that answer your question, Representative Love? Or you need to ruminate on it? I need to ruminate okay all right uh you may go on yeah I will say the
Nick Fuller
Unverified
46:52
the rest of this report is a follow-up from a report we presented to you in August for the number of students and different breakdowns of the criteria of those students that were awarded in the past year for fiscal year 2019 you can see there were there were a total of 32,486 students awarded
for the year and there are different breakdowns based on race gender for each of those there's the first report includes all students and then there's a second set of information that includes only the first time students which is around 12,000 students total of first time entering students that received the scholarship and it also gives a breakdown of the average ACT average GPA of the students number of hours attempted as you can see what this report does
is follows up to show the amount of students that continue their eligibility we have an October 1st deadline for students that had the scholarship the previous year to be able to submit backup documentation to be able to continue eligibility into the next year and this just this is the the first meeting we've had since that October 1st deadline for the report to be presented. So you can see that the first items are students within the different traditional and non-traditional that completed their eligibility, finished their time in the institutions.
The second line is students that have been dropped from the program at the end of the year, and the third are students that are continuing eligibility into this current year within each program. Available for any questions
Senator Joyce Elliott
Unverified
48:29
you might have on that. Any questions? Representative Fry, you
Representative Johnny Rye
Unverified
48:32
recognize. Thank you, Mr. Chairman. At ASU, I know we're down, you know, as far as enrollment.
Does this affect this at all as far as the scholarships?
Speaker 146
48:46
Anecdotally, yes. So we've had a decline in student enrollment, particularly among the two-year institutions over the last several years. We're actually in our first semester of growth in our two-year colleges in quite some time. We've had small declines at the four-year universities. So, of course, yeah, enrollment declines correlate to uptake on the scholarships as well. But there was also some changes, ACT and GPA requirements changed.
So there's a lot of moving parts to what may
Senator Joyce Elliott
Unverified
49:21
have impacted that, yeah. All right, that's it. Any other questions, anybody? All right, then, if there are no further questions, thank you
very much. All right, next item. I keep losing my stuff. Here we go. We're on item F, last item, unless there's other business.
So, Mrs. Scrimshire and Mr. Woosler is already here. So, if you would just come ahead, please.
Mr. Scrumshire, if you would introduce yourself for the record, please, you're
John Scrumshire
Unverified
50:11
recognized. Thank you, ma'am. My name is John, thank you, Madam Chairman, sorry. I'm still
John Scrimshire
Unverified
50:16
getting slightly used to legislative sessions. My name is John Scrumshire, I'm Vice President of Commercial Operations for Camelot.
Senator Joyce Elliott
Unverified
50:22
For members who maybe were not here the last time we met, there was a request that we get an update from Camelot so that we are comparing what we had in our original contract, see how they're performing and so forth. So that's why we have this report. Mrs. Scrimshaw, would you like to wait till the end to get questions at that moment?
John Scrimshire
Unverified
50:48
Madam Chairman, I'd appreciate taking questions as we go.
I think often they're fresh, and that's a good
Senator Joyce Elliott
Unverified
50:55
time to ask them. I agree. Okay, that's great. So everybody
John Scrimshire
Unverified
50:59
hears that. Okay, you may proceed. Thank you. So good afternoon, everybody. Yes, my name is John Scrimshire. As you can tell
Speaker 166
51:06
from my accent, I'm from Great Britain. If you like, the home of where my company, Camelot, were founded. We now have, as you can see there, very much a North American division called Camelot Global Services North America. We actually trade under the name Camelot Lottery Solutions, but our actual entity is Camelot Global Services North America.
And I'm very pleased to be given the opportunity to present to you today. I will try and go through it at a good pace, as we would say. I also will avoid any repetition because I know with Bishop's presentation there were a lot of very good questions asked that were also kind of covered off within this presentation as well. So I will keep going at a pace. I am conscious that there are some new members of the oversight committee from when I last presented and certainly from when Camelot first came to Arkansas working on this contract in 2016.
So I did just do a brief overview of who we are just to avoid being stopped halfway through when someone asks, sorry, who are you? So here I go. Camelot as a group of companies are a leader in the lottery industry across Europe, and we are growing and growing steadily within North America as well. Our heritage is within the UK National Lottery, where we have operated that lottery for 25 years as the private operator,
which is the way the lottery was set up in the United Kingdom. Our two big contracts within North America are Arkansas, which we're extremely proud of and which is why I've lived here for four years running on behalf of Camelot this contract and obviously working with Director Woosley and his team and the vendors, the key vendors for this contract, Intralot Scientific Games and the advertising agency, CGRW. We also, within North America, operate the Illinois State Lottery as the private managers.
That's a decision that was taken by the state in Illinois around private management. and we are the the operators there we have a head office in chicago illinois which coincides with operating the illinois lottery and then we have what we call centers of excellence in london dublin and ireland and and athens that's particularly our tech center is in is in athens and
John Scrimshire
Unverified
53:24
it wouldn't be a presentation from me as others who've who've had the uh the fortune or
Speaker 166
53:29
misfortune to see me present before that i i don't put a map up i love to put a map up showing uh
showing exactly where Arkansas is for people who I present to outside of the state, and most importantly for Arkansans to show exactly where the UK, Ireland and Switzerland are, which is Lottery Remond, another contract that we have in Europe. So moving forward, just first of all, I just wanted to give a brief overview of the contract that we've had here, particularly for new members of the Oversight Committee. So we've operated here since December 2015
as management consultants or business services consultants. We first of all developed a five-year business plan, and we've then worked alongside the executive team and the team at the lottery to implement many of the key initiatives that were first up developed within that business plan and I have to say have since evolved and there's been many, many other initiatives that have come through, because 2016 is obviously a long time ago now and just to remind everyone because it is still
extremely relevant that one of the first things that we put in place when we when we were writing the business plan was to have a new mission statement for the lottery which is to maximize proceeds to scholarships in a responsible way and everything and all the plans that we have in place and that and that we have since put in place all lead up to that mission statement that we're looking to maximize proceeds to scholarships with with every decision that's made and that we will do things responsibly and then people remember that again we talked on a number of occasions
about strategic pillars which in fairness most businesses have which is which is kind of to have your strategies in place and and every single strategy should fit within one of those driving pillars and those were highlighted as being brand games marketing retail and player relationships and even now four years on all the plans that we have in place will fit in within one of those within one of those pillars whilst obviously leading to the to the mission statement itself and again those who were who were on the oversight committee at the time will remember that back in
2016 I think it was March 2016 when it was it was finally approved the the business plan as well as being a very detailed document, highlighted a large number of key initiatives that we recommended to be delivered to drive sustainable growth for the lottery, not just in the kind of next year, but in the forthcoming years. And then what actually has evolved from this is that at the beginning of every financial year, or just before the beginning of every financial year, I sit down with the executive team, and particularly the director, and we work through
a Camelot implementation plan for the key initiatives we want to deliver in every different financial year. And that's been the same in 16, 17, all the way through to 20, that we put in place an evolving business plan that still has key initiatives that need to be delivered. And I'm really delighted to say, and I think it's not until you have a presentation like this you sometimes feel that you have the opportunity to be able to show you know some of
the um the key initiatives that actually have been delivered since 2016 and i'm very keen to emphasize this isn't just the camelot show um this is a result of work from from all different parties working with within the arkansas scholarship lottery both in terms of the the extremely capable and dynamic team there but also the uh the vendors who who clearly have immense experience um in working with the with the arkansas lottery and they share their experiences from other lotteries as well this is very much a team a team initiative and i think
rather than going through every single initiative here a couple of key areas i would highlight um one is that that we now utilize what we would call insight um a lot more i think it's fair to say than than was being used before so all decisions that are made there's a rationale behind why those decisions are made um we've also where where necessary recruited um we were fortunate enough to be able to recommend and be able to have some input into the recruitment of a key accounts team or a key account manager within the Arkansas lottery. And I have to say
that she is extremely capable and has had some really, really big wins. And the fact that some of the biggest retailers who operate in Arkansas now have a person they can talk to on a regular basis has really reaped extreme benefits for the lottery. And I'll touch on a couple of those wins a little bit later, but it is fair to say that from where we were to where we are, I think we've made extremely good progress, but obviously you can't stand still. Nothing will work if you just
rest on your laurels. You need to move forward with your plans and initiatives and understand that the consumer is changing, as is the retail market. So just to give a commercial update, And as I say, I'm not going to repeat everything that Bishop obviously has already gone through in terms of particularly this year. But I think it is always worth just looking back to remind ourselves that we have just had two consecutive record years, which is obviously an exceptional achievement. We had a record net proceeds year last year with over $98 million transferred to scholarships.
We also had, as Bishop alluded to, record draw sales. And we actually did have a record instant sales last year. it was by about two about two thousand dollars we actually did manage a record instant sales year last year um something i think that also should be highlighted because it's been raised a number of times here at the oversight committee and rightly so is around responsible gaming and i'm also delighted to say that again working with the the leadership of the director the lottery for the first time has been accredited at the planning phase of the
North American Lotteries and National Council of Problem Gambling's Responsible Gaming Programme, so they have three phases to this, planning, implementation, and then ongoing. We entered and have now been approved within the planning phase and we're now working for the next two years on the implementation phase, which ultimately is to put in place what we said we would do, where obviously improvements were highlighted. I should also say, and I'm sure many of you noticed that in September, the North American Association of State and Provincial Lotteries annual conference
was held in Little Rock. I can say that I had very little input into it at all, and rightly so. I can say that the dynamic team from the lottery produced one of the, I think, one of the best lottery conferences I'd certainly ever attended. And I know that there's been nothing but positive feedback from across America on very much putting Little Rock on the map. And it's worth highlighting that because normally a lot of these conferences are in what would be termed as kind of the major cities so atlanta or or cleveland or dallas and it was a bishop and his team who brought
it to little rock and it was a resounding success and it also it also should be highlighted again and i hate using the word smaller states but it's fair to say that within the the awards that are handed out by the north american lotteries the lower population states often don't really get much recognition. Well, last year, the Arkansas Lottery won what's called a La Fleury Award for one of the five best lottery advertisements in the year. Again, for a lottery with the budget,
the size of Arkansas, but also with the population of its size, that's an outstanding
Senator Joyce Elliott
Unverified
1:01:14
achievement. Mrs. Scrimshaw, for that award, if we were to go online and look up La
Fleury award, would they show us the metrics they used to make that determination? Do you know, or does
Speaker 166
1:01:30
there is a panel, but it was also voted on. And to be pretty honest, Madam Chairman, anybody who went onto the website was allowed to vote,
but it was very much a voted-for advertisement. Okay. Or one of five, should I say. But if you go onto the Flurry website, you can definitely see the
Senator Joyce Elliott
Unverified
1:01:49
five winners. Okay. All right. Congratulations, then. All right. Go
Speaker 166
1:01:55
on. and again just to show the uh the certificate um of the uh of the uh responsible gaming verification um i do think this is a really positive move um and i have to say that again um the focus that's that's now been put on responsible gaming um has not only sort of
got us this award but it also improves the image of the of the brand uh of the lottery brand if you like within arkansas so again very very important and a really good success so what also because i know that sitting here and obviously there's already been a lot of discussions today around around budgets has been the impact of the commercial plans that have been put in place and as bishops already discussed today there are obviously factors that fall behind this what this line shows and a moving annual total means at any point on this line
it's it's taking the sales of the previous 52 weeks so this is a line chart that really is the health of a lottery business and and to be fair most commercial businesses use moving annual totals the bottom line is that sales are up 22 percent um to literally to this day from from the low point of uh of kind of mid uh 2014 um you can also see from the chart that that there actually has been obviously a slight drop off within the last couple of months that's because the power powerball and mega millions jackpots that bishop already spoke about have obviously now been been
lapped and therefore that has an impact on the uh on the moving annual total what i would draw your attention to um if i may is around january 2016 there was a 1.6 billion dollar powerball jackpot and clearly again you can see there where the mat chart just dips down um because of the fact that obviously again it was lapped a year later but you can still see that the trajectory of the line is is to continue north um and that's really the health of the business and and i have to say that based on the moving annual total chart, this lottery long-term is in good shape.
And total transfers, which is clearly what the lottery is set up to do, have been outstanding for the last five years, and most importantly, reflective of the efforts that have gone in to maximise proceeds to scholarships. And as has been discussed today, there may be a slight downward turn on what's collected or what's transferred in FY20. But again, compared to FY15 and FY16, which was the year that had the first billion-dollar Powerball jackpot,
and FY17, where there were, again, far greater jackpots, the overall figures for transfers are extremely positive. And I just wanted to share this just to really, I guess, very quickly emphasise what Bishop has already spoken about, is the fact that you can see, particularly in FY18 and FY19, there was some extraordinary jackpot activity, to the point where, with the conversation around budgets, actually the budget was smashed, and obviously people
like the fact that a budget gets smashed forward and have more concerns where a budget is falling behind. But the good news is that the reliance on good fortune within the Arkansas lottery now is distinctly lower than it was back in say 2015 where where no powerball jackpots meant that that uh that scholarships fell to kind of levels of around 72 73 million dollars and something that needs to be addressed and really just for for information here as much as as players as i get asked the question well is this just arkansas is this across america
these are uh powerball and mega million sales across the united states of america all the united state lotteries and one of the big things that's being spoken about at the moment is jackpot fatigue which is where i guess putting it simply your infrequent players who like to come in to play powerball and mega millions when it gets to a certain jackpot level are moving their expectations forward to somewhere closer to 250 to 300 even 500 million dollars before they actually want to start playing whereas previously everyone used to think 100 million dollars was a was a big jackpot
I have to say, with the slight lack of jackpots, if there is a silver lining this year, I think actually Arkansas and America is ready for a big jackpot now. So whilst we love the fact that people are winning, and that's what a lottery is all about, it would be nice to have one big jackpot before the year end, just to make sure that we hopefully achieve our budget. And Bishop obviously put up a slide earlier showing where we are at the half year. He actually showed right up to date, to be fair.
But to the half year, again, just in terms of the health of the lottery, if you look at the half year in FY15, which broadly had exactly the same lack of jackpot activity that we're currently having, sales were 190 million. As of the half year of FY20, they're 240 million. That can be considered a like-for-like comparison because we haven't actually launched any new games since 2015. Dean, one of the briefs that Camelot had when we came here was we don't, you know, this isn't the time to be just launching new games.
Speaker 171
1:07:05
This is the time to consolidate with what you have. And I think the results there
Senator Joyce Elliott
Unverified
1:07:11
have been very positive. We have a question.
Senator Gary Stubblefield
Unverified
1:07:16
Senator Stubblefield. Thank you, Madam Chair. Mr. Shurmshire or Mr. Wolseley.
I know this is a little off topic, but has your group, Camelot, or the Arkansas Lottery, or any of these other partnerships that you deal with, have they ever done a study to see if there's any correlation between the time of the inception of the lottery and the
cost of the rise in tuition costs at these higher ed institutions? Not to my knowledge, sir, no. I mean, we have seen an increasingly rise in the cost of tuition ever since the inception of the lottery. Do you think there's some kind of a
Speaker 34
1:08:04
correlation there? I honestly don't know, Senator. I can tell you in the beginning, I think there was some conversations
Speaker 12
1:08:10
about the fact that there were more students going to college, which required more facilities and more instructors, for lack of a better term. I haven't heard any mention of this conversation probably since 2010 or 11, and I'm not privy necessarily to what it costs in each individual institution to go to college, so that's about the extent of
Senator Gary Stubblefield
Unverified
1:08:30
my knowledge. Would you agree, though, that when these higher ed institutions know that there are more scholarships being handed out, more money available, that would almost seem like an incentive?
Speaker 12
1:08:42
Would you not agree? Senator, I don't have any. I've never sat in one of the meetings where they determine whether there's going to be
Senator Joyce Elliott
Unverified
1:08:52
a tuition increase or not. I don't know what goes into that equation. Well, I would not like you to speculate any further than that because you won't know what you're talking about. I mean that in the kindest way. My wife tells me that a lot. In the kindest way, because I think that's a worthy question, but it certainly requires a whole lot more, I think, in-depth discussion and research because one of the things that's also happened is that over these years we are funding our higher
ed institutions less and less as a state so um and and so just anecdotally i guess you might think about i don't mean you senator stubblefield i just mean in general um if we are if everybody is doing, if the state is doing less, then paying for higher ed comes from somewhere. And I don't know that it's the lottery that would cause anybody in that case to
raise tuition because you are losing money from the state. So it would probably not be logical for you to raise tuition because you are going to bet on the lottery to make up for it. So, but I think that's something we can discuss down the road, Senator, and explore. You have a further question or further
comment? No, I'm not sure. It's fine. Okay. Thank you. All right. Thank you. Anybody else have a question? Senator Wright.
Well, go ahead. Why don't you go ahead and do it now? He might be on a roll
Senator Jimmy Hickey, Jr
Unverified
1:10:29
and ready to end. Well, and first of all, I'll say, let me say
it this way. and bishop also but i'm talking about camelot i am proud that we have you all i have been very pleased with you being there helping
manage this company and i heard you say that you can't sit there on your laurels and that's a good thing to say because i'll rephrase it if we get behind
in a different manner but what i want to know is what we're doing and i think senator Stubblefield had kind of touched on it a minute ago we've got we know we've got these casinos coming in we know that we've got ballot initiatives that people are looking to put what are we doing and I'm glad you're here now and you understand the Arkansas lottery I think that is a very positive thing for us what are you all doing to be proactive to that whereas in the past we may
been reactive but we have the opportunity here to be proactive and to get ahead of the curve are there certain things that you all are doing because if some of this stuff does come through and transpire so that we can keep funding the scholarships that we've been doing can you can you kind of expand on that for us a little
John Scrumshire
Unverified
1:11:48
bit i certainly can senator and uh first of all thank you for your for your comments um if i may actually
Speaker 166
1:11:53
i think the very next section i'm going to go through now in this presentation talks about um the future opportunities um what i'd say is not
sometimes even even even even for a for a um a business that wants to always be proactive sometimes actually there's there's an opportunity to look and see what other lotteries particularly in north america but also around the world are doing and trying to see how that can translate into into something we could do in arkansas there's there's always certain restrictions There are sometimes some very positive attributes to being a small estate in terms of we can be very nimble, we can be quite quick off the draw with our strategic planning.
Other times things like our population size slightly stands against us when it comes to looking at different types of drawings, for example, because you obviously have to have a jackpot of a reasonable size. But if I may, I think the next two or three slides probably cover this off quite well. Yes, sir. Thank you. Thank you. So when we're talking about future growth opportunities, I think to the point that was just made by Senator Hickey, the competition within Arkansas is of a completely higher level
than it was back in, say, 2016 when Camelot first came here and the lottery had been running for seven years. It's now obviously 10 years old. we now have obviously some new casinos being built and an increased offer within the existing casinos we've got the launch of the mississippi lottery and they they launched about two three months ago now and they've just started selling powerball and mega millions so so the revenue let's say we used to receive from powerball and mega millions where people would come over the
border from mississippi that's obviously going to primarily remain in mississippi now and clearly areas like sports betting add further competition to that and all the time you're also competing against you know other retail challenge say challenges other retail companies who are clearly fighting for uh everybody's disposable income so you know there's still going to be big promotions from the from the from the soda companies or from the chip companies um you know we've always said the lottery business should be considered on the one hand it is a gaming product but it's also a consumer product so in light of the fact that we know that things are should we say tough at the
moment although we're fighting hard we've gone through a complete kind of commercial review almost halfway through this fiscal year whereas normally we might we might carry on through to the and wait till the end really to see where where is it we can incrementally increase sales and net proceeds but at the same time ensure the future of the lottery there are some things you some levers you could pull now for short-term gain that without it sounding too much of a cliche would create long-term pain you can you could pull a lever tomorrow that would gain you x million extra dollars in sales but you will regret it in the next year two years time you have to have a
sustained business model and and that's what this lottery now has in place hence why there hasn't been a game change in in in five years now um and i think bishop and i were talking about the fact the price point on instant tickets now hasn't changed for 5-6 years and we've worked with what we actually have we need to try and expand the player base, there needs to be the fact that you want to have a lot of Arkansans playing a little you don't want a few Arkansans playing a lot that is not what a lottery was set up to
do, there's other companies that focus on a far smaller percentage of people playing and playing a lot, lotteries were always set up to have a wide field with a very small amount being played. And we continue to want to exercise our responsible gaming controls that are now in place. We also think that there's a far greater opportunity, and this is where I think we can be significantly ahead of the curve of other lotteries within the US and the world in terms of having a more data and insight-driven approach
rather than just purely reacting to what other lotteries are doing. and first of all when i talk about our commercial opportunities the first thing we have to do is make sure as always that our business as usual processes are rock solid and that we are maximizing the impact of those maximizing what the marketing plans are maximizing what the retail team are doing in stores maximizing what we're talking to our chain retailers like the the walmarts the come and goes the the easy marts are doing we need to make sure we have high quality games we need to
make sure they're executed well and we need to continue to to to grow the brand of the arkansas lottery with our beneficiary beneficiaries program driving win belief and and obviously all coupled with it being done in a responsible way so and i'll go into this in a second we are at the moment and have just completed a very detailed review of the existing games portfolio particularly draw games portfolio and to see whether there are opportunities for enhancements and and new game opportunities and at the same time we're also looking at new ways of working in retail to see
if there are if there's if there's a way of improving the buying experience for the consumer because the consumer is changing and we all know that the likes of of amazon for example are meaning that you can you can buy a lot of products without even having to go into a store from a lottery perspective where 70 of our sales are sold in gas stations a lot of customers don't even go into the gas station because they pay at the pump so that there's all sorts of competitive factors here that you want to work with your retailers on um to come up with better solutions so taking first up the draw game opportunities and
John Scrimshire
Unverified
1:17:34
i and i go here towards the business plan
Speaker 166
1:17:37
back in 2016 we we put in there that that um we believed it wouldn't be until 2020 that you would necessarily review some games that other lotteries uh have and and have sold for for many years now but most importantly we also put in place the fact that there always has to be a consumer need behind all games and it's no surprise that mega millions and powerball are about low draw frequency with high odds but extremely high jackpot amounts they're the ultimate dreaming games they're the ones where if i win this i'm going to buy a yacht and i'm going to go and you know sail around the
world that's what you can do if you win mega millions and powerball and then all the way across as you'll see um under natural state jackpot you've got a slightly lower jackpot amount because it's an in-state game it's a daily draw frequency but it meets a need because of the fact that it gives Arkansans the chance to play a game that can only be won in Arkansas and that's a big driving factor for this state. There's also some other games, Lucky for Life which is another multi-state game that again is drawn twice a week and there's some plans afoot there to increase the frequency there. And then the Cash 3 and Cash 4 games which again I would
say with Bishop and I've talked about this before, I would say is a very reflective of your base business because those are games that again are played within the state of Arkansas. They're played in other states as well but the the jackpot in arkansas is is the jackpot that could be won here um and i think sales are something like half a million dollars up on cash three this year which is a really good indication of of the base business but there is an opportunity there's a gap at the kind of top right of the uh of the matrix um where there's an opportunity potentially for for a high jackpot amount um but maybe with a with a higher draw frequency so with that in mind we then
plotted if you like where we are in arkansas versus other states that we would consider to be peer states across the united states so by that i mean we don't compare arkansas to california or we wouldn't compare arkansas to new york because that's a very different model with 20 million people in new york and nearly 40 million people in california but we can look at some other states that whilst there are obviously differences we would consider them to be to be peers and you can see there that there's some very consistent games that are played across all states in
America. Bishop already alluded to the fact that Powerball and Mega Millions are played in every US lottery. Instant tickets are on sale in every US lottery. And in many ways, the three-digit game, which is cash three here and four-digit, are quite popular. So then to overlay across kind of looking at what other states are doing, because I think this is an opportunity to have a look and see what else is out there um clearly what we then do is is heat map these um these games against um all the different states to show where are there any gaps and i guess you would say
that the gaps come through as as where you see the red because it's clearly a potentially an opportunity because there are zero sales showing so and this isn't by the way a uh a pitch for any any any of these particular ends but but games that we should consider because of the fact that other lotteries do sell them and it is a different channel would be possibly Kino but also there's potentially some work that we can do to improve our sales on the numbers games we certainly believe there's an opportunity to enhance
the daily jackpot game, natural state jackpot and make it even better and through all this we would hope that whilst we obviously still sell a lot of Powerball and Mega Millions that our reliance on those games gets lower and lower because the less reliant we can be on big jackpot games, the better because, as Bishop alluded to earlier, if we get a jackpot drought, which at the moment is as tough as it's been for the last five years, we need our base business to be really solid and the base business is what we can control in market.
And then within retail, I think we've made some huge developments in the last few years and this year is no exception. And actually, as I speak now, there's new jackpot signs about to be delivered to or about to be sold in, should we say, to 500 retailers, 600 new retailers. So the sales team within Arkansas are busy or about to be very busy working with their retail partners to improve the look of lottery within those stores and to better communicate the jackpots.
In particular, worth noting that natural state jackpot will now become part of that jackpot sign, whereas previously it was just Powerball and Mega Millions. It sounds like a small change, but it should reap extremely positive benefits. We've also introduced, as you'll see on the left, in line with when the Razorback ticket was launched, the first ever Razorback ticket that's been launched in Arkansas, we launched what we call power towers, which are towers that go next to separate till points within retail stores.
You're probably all aware that often you go into retail stores and there's quite big displays of instant tickets. Well, this is an opportunity for retailers to have a smaller display at a secondary location on their counter. And that's proved to be very popular with our retailers. And last but by no means least, arguably the most exciting project within retail in the last few years is the introduction of Lottery into Walmart super centres. and I know that there's an enormous amount of negotiation
that's gone on by Bishop with Walmart and also working with his key account manager and his key account team to first of all get them to agree to use Arkansas as one of their pilot states but then working with their partner with the lottery's partner Intralot to design a fantastic new machine called the DreamTouch and I strongly advise anyone if you go into a Walmart store is to go and look for the DreamTouch machine It's just by the self-service checkouts, but an enormous amount of work has gone on by the lottery team to make that live.
And I know so far that Walmart seem to be pleased with the technical, every element of the technical experience. I think there's just, as there always should be now, an opportunity to improve consumers' awareness that the machine is now there, and Walmart are now selling lottery in their super
Senator Joyce Elliott
Unverified
1:23:58
centres. Mr. Scrimshaw, just a quick start. I'm not familiar with the vernacular here, I guess. So what's the importance of low height? I know there must be some... I mean, I know people need to reach it, but surely it's something other than that.
Speaker 166
1:24:14
What does that mean? So the crucial thing here was Walmart, like a lot of retailers, want things to be within eyeline. And in summary, they felt that the existing vending machines that are available within Arkansas weren't as they would like, is the easiest way of putting it. So they wanted it to be a lower height. They wanted it to be very intuitive and touchscreen, et cetera. So that was really the critical piece. They didn't want a great big tall machine.
Senator Joyce Elliott
Unverified
1:24:45
They wanted it to be at a low height. Is there anything to
Speaker 12
1:24:52
add to that? Accessibility is just kind of what it sounds like there, huh? Our current vending machines, our previous vending machines, look more like a Coke machine. the height of probably six and a half feet seven feet and to get into these big box stores they want a line of sight and so basically to them the line of sight is 42 inches I assume because it meets up with whatever their customer self-service lanes are and so we had to go back to our vendor and ask them to create a machine and they did so willingly it's a great machine so that we could
get into these big box retailers so now you know to Senator Hickey's point the next generation of stores that we're going into are not probably going to be traditional they're going to ask for different type of delivery than what we typically give in a c store and that is kind of where we've been going over the last year is trying to get into these stores that haven't done lottery in the past and so you know walmart tells you what to do as opposed to a lottery tells walmart what to do and so you have to you have to adjust to whatever they want you to do and that goes for
any box store that we may be dealing
Speaker 190
1:25:54
with. Okay. All right. Thank you. Oh, um, Senator, you
Senator Gary Stubblefield
Unverified
1:25:59
may go ahead. Thank you, Madam Chair. Mr. Woosley, uh, Mr. Sharmshaw, how would you know if you
Senator Joyce Elliott
Unverified
1:26:07
expanded your player base? And would you just tell us which page you're referring back to
Senator Gary Stubblefield
Unverified
1:26:11
there? You still, you have that pulled up, Senator. That's on 21, page 21. One of your goals was to expand the player base through enhanced communications that meets the consumer's
changing needs. How would you categorically know if you expanded
Speaker 166
1:26:26
your player base? So, sir, thank you for the question. We actually instigated a consumer tracking program, and we actually have a quarterly consumer tracker that is done through research. It interviews five, I think, 600 Arkansans, randomly selected by an insight company. Oh, you do a poll? So basically a poll, but it turns into a very big kind of presentation. And that we've just completed, actually, the one for the last quarter,
so to the end of December. And that will tell us one of the questions within there is, when was the last time you played lottery? And obviously some people who answer that poll have never played, and other people have played weekly. But most importantly, it gives you a trend of whether people are playing more or less. And it's that kind of insight that we continually use to measure
Senator Gary Stubblefield
Unverified
1:27:14
ourselves against. You know, I'm an older guy, pretty simple. But it seems
to me like if the lottery's been in place for five or ten years, you've pretty much established your base.
There's not a lot of new people that's going to start playing if they haven't
Speaker 166
1:27:33
played before. Would you agree with that? I have to say that we know that 70% of Arkansans have played the lottery. The critical piece is that when we first wrote the business plan, We talked about protecting your frequent players, nurturing your infrequent players, and recruiting new players. The big area of opportunity remains. You clearly make sure you protect your frequent players. But the big area of opportunity is the infrequent players.
And if I went back to that chart on Powerball and Mega Millions, you saw where people used to come into the game at 200 and 250 million jackpots. They've now started. There's a trend that they're pushing out to not playing until 250, 300. the opportunity to make to give those those
Speaker 186
1:28:13
customers a reason to come back and play at 100 150 is is kind of the excuse
Speaker 172
1:28:18
me so these are these are frequent play i mean these are not frequent players exactly right sir so you're looking to move your infrequent players
Speaker 166
1:28:27
to playing more frequently and and often then if you make it more accessible you'd be surprised
actually particularly at the kind of um uh millennial level is and i know it's an overused word there's a lot of millennials who find the lottery and the way that you can purchase lottery not really to the way they like to do things now um so so we're continually working on developments like in walmart with that touchscreen um vending machine um working with the vendors who obviously are at the force up the forefront of kind of retail technology to to make it the experience better so i have to say that you are right there's a lot of people who who uh there's only a certain player base you have because there's only so many arkansans you can target and a lot of them may
have played, but you can encourage them to play a little bit more frequently. Well, it
Senator Gary Stubblefield
Unverified
1:29:10
just seems like it would be a huge challenge to increase that base. I mean, it would be very difficult. I'm not saying it's impossible. I'm just saying it
Speaker 186
1:29:17
would be very difficult. It's definitely a challenge, sir. You're absolutely right. It is
Representative Johnny Rye
Unverified
1:29:23
a challenge. Thank you, Mr. Chair. You're welcome. Representative Rye. Yes, ma'am. Thank you, Mr. Chairman. Sir, question for you. You know,
when you go into like a service station where you're selling gas, candy bars, and all that kind of stuff, this machine over here on the left,
do you load this with money or do you buy that at
Speaker 164
1:29:45
the counter? Is that the vending machine or the... The get in the game. The red box, sir. The
Speaker 166
1:29:51
get in the game, yes. So that's a dispenser that holds instant tickets, sir. So either the... Normally the retailer would put the instant tickets into the dispenser and then they're sold to the customer. So you can't just load money into that? No, no, no, no.
It's sold by... The way it's positioned is that instead of it being where the main dispenser is, where a lot of customers go, actually there's also a lot of customers to the point it was just raised by the senator there who may not have thought about playing because they're at the wrong checkout point. He's an infrequent player. That's exactly right. And that's the idea behind that game is to encourage people to see our product wherever
Representative Johnny Rye
Unverified
1:30:32
they are. Yes, sir. The reason I ask you this question is when you go into a lot of service stations, especially one that sell gasoline that's real tight, you know,
you have got a load of folks in line, you know, and they're selling gasoline and they're selling tickets. But if you had some mechanism in place that where they could bypass the cash register and they could go into this machine, It looks like to me you would sell more tickets, and at the same time you'd pull your crowd away from where folks are trying to buy gas, and it might help sell tickets.
I think it's a very good point, sir.
Speaker 166
1:31:11
I mean, there are vending machines already, particularly in stores like Love's, for example, whereby there are vending machines actually within those travel stores. And as you rightly say, it takes you away from the counter. What I would say is that actually the counter where people pay for their gas is actually a really important sales area. And often you find that people purchase particularly instant tickets on impulse. And actually just having them at the counter often just stimulates someone to purchase. But I do absolutely agree that you can also have a vending solution as well.
And just coming to the last couple of slides here, And I think one of the questions that was asked, particularly I think it was Senator Hickey, asked around what can we be, where can we be really proactive? And I've already talked quite a lot about using Insight to form our strategies. We're in some discussions at the moment, and it's an early stage around utilising a data platform as a means of further improving our kind of real-time information that we're getting from our players
and from our retailers and basically taking the enormous amount of data that is available through people purchasing lottery because obviously you purchase it through a machine and you can see from that machine what time the ticket was purchased, where it was purchased, how many lines were purchased. A lot of that data ends up becoming quite fragmented and it's available but you have to go and search for it if that makes sense. And basically, through pulling together your data into a kind of central place, it makes your reporting and the availability of insight to form your plans to be a lot easier to do.
And it's probably better summed up by just sort of the benefit summary here, which is that if you are able to utilise data and utilise a data platform to improve your reporting, One, clearly, you're able to grow sales and net proceeds by having a better idea of who your players are and being able to much more tailor-make your offer for them. So instead of someone just receiving a general message that says, play lottery, you actually start to understand that this person, who may be in Little Rock,
actually doesn't just want to be told, play lottery. She or he wants to be told, it's a powerful jackpot tonight and the jackpot is this size, or don't forget your Mega Millions ticket tomorrow. so there's an opportunity to really start to use data and digital to become a far uh far more dynamic and intelligent lottery and and it's quite difficult to explain and i needed to have a few people explain it to me a few times um but overall the bottom line is the better that you talk with your customers the more successful you'll be and obviously the masters of it are the likes of of
the big grocery chains uh and and the likes of amazon who obviously talk to their players know who their players are and tailor make their messages for them and that's what we'd like to get to with the lottery i should also add that under responsible gaming that actually improves that again because with the with better access to data you can much faster identify where there are potential responsible gaming issues happening so finally in summary and i really do appreciate your time today and i hope that it's given you some insight into how the lottery has has come
so far forward over the last five years and the fact that it's been working with a dynamic team at the lottery that has been able to achieve that. Total transfers are up 35% which is a fantastic achievement. Our half year FY20 sales whilst trading is tough are in a far better place than they were five years ago. We continue to drive sales with our interstate and instant games However, it's fair to say that we're having a tougher time of it,
and I know budgeting was talked about earlier, but we really are in a place where you wouldn't be able to predict the lack of jackpots that there's been this year. Statistically, it would be like a 25-to-1 shot winning at Oaklawn. It really has been one of those tough years to predict. But on saying that, looking forward, again, the use of greater data, the use of enhanced insight will further improve the budgeting process. But I would have to say that we think,
and I know Director Woosley is the most important person here, but the lottery is in very good shape, and it's in a good position to continue to deliver strong transfers. So thank you
Speaker 186
1:35:51
very much indeed for your time, and if there are
Senator Joyce Elliott
Unverified
1:35:55
any other questions. Yes, we do have at least one. I know, Mrs. Scrimshire, and thank
you, Chief, for your presentation. Representative, you recognise? thank
Representative Mark Lowery
Unverified
1:36:04
you senator i appreciate you allow i'm not on this committee i came in from the higher ed
subcommittee so there seemed to be some overlapping interest but one of the uh questions and i may have asked this when you first came on and now that you've had time to evaluate it one of the concerns that i have had and i would like for you to try and give us some um solid information other than while everybody else is doing it. This issue of allowing losing tickets to be entered into a database to earn merchandise credit, I have a real concern about that because it seems to me to
incentivize compulsive gambling and that is that's just not really what we want to be about and what we've been told consistently is that the goal is to spread the breadth of participants rather than the depth, and it just seems to me that having this ability, I have no problem with the second chance opportunity, but the part of it where they have a database, I mean, this was brought to my
attention by a constituent who was telling me that he had earned enough points for two flat screen TVs and
Speaker 203
1:37:21
a computer, and I'm like, my gosh, I mean, how much have you spent on
Representative Mark Lowery
Unverified
1:37:28
lottery tickets? Well, about $300,000. You'd mentioned the word responsible gaming. That seems to be counterintuitive to our goal for responsible gaming. So could you please tell us how much we need that system, that program,
other than, well, everyone else is doing it?
Speaker 166
1:37:50
So I think, first of all, there are, and I can't speak about this individual, obviously, There are safeguards in place on the players' club, so it should be spotted and flagged if there's an excessive number of tickets that are being redeemed. There's also only a certain number of points you can earn in a one-month period, is it, Bishop? In a one-week period.
Representative Mark Lowery
Unverified
1:38:13
Right, and the way he was getting around that, he was actually hiring someone to enter that in for him,
and he had so much volume, And so their direction was to spread it out so that, you know, they're not violating or being flagged. I
Speaker 166
1:38:30
mean, certainly what I would say, and without knowing, again, the individual case and the facts is, yes, you are absolutely right. You don't want one, any one player playing excessively. But at the same time, there are, as I say, I know within the Players' Club, there are some particularly good safeguards in place
that would flag this. If somebody's getting round that through, I don't know, getting friends to play as well, what I would say is that makes it even more difficult to be able to find that, to get that person. I mean, the Players' Club overall is there as a rewards programme, but it's certainly not there to just create excessive play. But obviously, if there's a particular incident, I think it should be, maybe it should be
Representative Mark Lowery
Unverified
1:39:18
discussed. Well, and my last, my follow-up would be,
is it, based on your analysis and looking at it, is this a, the players' club, is it something that is critical to being able to keep play up? I mean, is it something that we have to
Speaker 204
1:39:37
maintain? I think there's always opportunities and in fairness to the players
Speaker 166
1:39:42
club and the executive, it's reviewed on a regular basis to make sure that it's doing what it's supposed to be doing and you're absolutely right, if it's going to mean that you get
a huge loss in revenue as a result of it not being there then that would be something that you would obviously take into account, what I do know is that it's very popular with players and certainly the feedback seems to say that it doesn't drive excessive play but it more is seen as a nice reward for a losing ticket. Okay. At this moment in time, I certainly think it's still a very
Speaker 204
1:40:16
viable club within our kind of commercial processes. Thank you very much. Thank you, Madam Chair.
Senator Jimmy Hickey, Jr
Unverified
1:40:22
You're welcome. Senator Hickey. Thank you, Madam Chair. Mr. Scrimshire, I want to be, and I've already said it, but I want to say it again. And Mr. Weasley, you're included, but I'm going to direct something towards Camelot. we appreciate what you've done for the last five years and from my
standpoint us hiring you has definitely been an asset however we for our scholarships
have become addicted to where we're at with these proceeds so the challenge I want to put towards you as Camelot
and it's me personally and some of the other ones could weigh in is I want you all because of the challenges that we know that are coming or that definitely with the casinos and possibly some other stuff is that you look at this like this is day one that we hired you with the state of Arkansas and that you come down here and that we hired you from the standpoint that we want you to look at everything to be able to maximize the things there's going to be challenges there's people there's people here of course that don't believe that the lottery should be around as you've as I've told you before I didn't vote for it but I'm on the lottery oversight committee
because the people put it in and that's what they wanted so i think it's our responsibility to try to make sure that that that's maintained and meeting meeting what their expectations were but again thank you for everything and i hope that you all and your company can look like again that this is day one because what i don't want to happen is uh a few months from now we're back in here and we're saying well you know boy we had a good spike we had a good spike and uh this was to be expected you have peaks and valleys which you do but i want to try everything we can
Senator Joyce Elliott
Unverified
1:42:05
to keep those from happening thank you sir thank you senator and mr scrimshire um and i guess for you too mr
woosley uh so we've got this report that we um wanted to see um is there a document or is this it something that will tell us here we are five years on that um what an update actually looks like i know we've got the original contract uh is there anything we need to know beyond this about if i were to request a document that's describing how we're moving forward is it this
is there something else that's more complete that the committee could have access to i
Speaker 164
1:42:48
have to say as things stand it's kind of that it
John Scrimshire
Unverified
1:42:52
is kind of that i would happily put something together if uh in terms of of uh going back through the four or
Senator Joyce Elliott
Unverified
1:42:59
five years i actually would and kind of following up on on senator hickey's question as well um because
we are five years on things are looking you know things have turned out great uh but with all of the other um influences that are that are going to come into play here pretty soon if we are starting from that day one
What does that look like? Just give us a sense of what's the game plan starting from day one. And I'm not looking for anything that's going to look like some kind of proposal that you were submitting for a contract. But I would like to have a sense of what does that actually mean and look like on paper. Is that making sense to you? It
John Scrimshire
Unverified
1:43:37
does. And the one thing just to clarify is, and this is with a view to the future. So this is the day one. What does it look now for the next two years, three years? Yeah. Yeah. I would happily
I won't quite go into the business plan that we did originally but I can work with the director and we can pull something together. That would be good as
Senator Joyce Elliott
Unverified
1:43:58
opposed to all of us having our ideas about what it means that these other influences are coming into play. It'd be good if we're all on the same page and so that's just what I'm trying to get at. That's a major thing. And the second thing about the responsible what was it called? Responsible gaming. responsible gaming clearly I need to get to some machines and stuff more because
I tell you there's a language here that is escaping me because I need to do better I guess but responsible gaming is sometimes people will hear we have two different connotations about what that means responsible gaming according to what from your side that's making sure more people play engage and people out there here when we talk when I hear responsible gaming if I were not in this setting I'd be thinking more about how do we help people gamble more
responsibly like you know drink responsibly and that kind of thing don't dry don't drink and drive well don't over gamble I guess would be the the way we think about it so just I know that's not your responsibility but I'm just calling the attention to it because I think it is legislators responsibility for us to think more carefully about what we have in place for people who may be over gambling, if that's such a term. Because I just think we have not done a very good job of thinking about this as a mental health issue
in the way we need to, as legislators, the way we have allocated funding to help folks who, I think it's inevitable somebody's going to have a problem, like the person Representative Lowry described. Where does that person go to get some help? I think that's a responsible gambling on our side of things. And we've charged you with just getting people to play. And there's a tension there that we need to give some thought to. Just for the wording so that you'll know some people are looking at it one way
and some are looking at the connotation leads you to something else. And I also say that, too, for our members to just give some thought to. How do we deal with that? Are there any further questions or comments from anybody? Okay. I promise you I will be
Speaker 212
1:46:12
quiet after this. I want you to stop making promises because that's not
Senator Jimmy Hickey, Jr
Unverified
1:46:15
necessary. Well, you know I'll break them to you sooner. You know I'm joking. One other thing, and it's kind of based on what you said, it kind of made something. If there's something that the legislature needs to look at,
then if we could get something like that
in this committee ahead of time, that may possibly help. and the first thing that comes to my mind and it may not make any impact on sales I know the press association will not be no not before this but
me being from Texarkana right on the line I know for a fact that there's people down there that would rather play on the Texas side instead of the Arkansas side just because if they were to win that they will be anonymous now I don't know what
that equates to sales or whatever but if we do get in there and see that possibly things like that could help if we could have it before this committee beforehand and it come out with a recommendation of this committee prior to the session that might be beneficial to us and help us some thank you and that's a
Senator Joyce Elliott
Unverified
1:47:21
huge i hear a lot about that because frankly i know if i won
I wouldn't want to advertise it to my entire family would y'all and anybody
else just start with family and imagine the rest of the people okay is there anything else if not a meeting will stand adjourned and we will let you know when the next meeting is set thank you so much for your presentations today we adjourned You
Agenda
A. Call to Order
B. Comments by Co-Chairs
C. Update on the Department of Finance and Administration (DF&A) Office of the Arkansas Lottery (OAL) Activities and Operations [Exhibit C]
D. Discussion of December 2019 and January 2020 DF&A OAL Disclosure Reports [Exhibit D.1-D.2]
E. Review of Arkansas Department of Higher Education (ADHE) Academic Challenge Scholarship Award Data & Student Status Report (A.C.A. § 6-85-219(c)) [Exhibit E]
F. Update on Camelot Global and DF&A OAL Business Plan [Exhibit F]
G. Other Business
H. Adjournment
Documents
Speakers
Senator Joyce Elliott
Unverified
Melody Breeding
Unverified
Speaker 7
Speaker 10
Speaker 11
Senator Jimmy Hickey, Jr
Unverified
Speaker 31
Speaker 40
Speaker 49
Speaker 34
Speaker 39
Senator Kim Hammer
Unverified
Speaker 17
Speaker 15
Speaker 38
Speaker 47
Representative Jim Dotson
Unverified
Speaker 94
Speaker 70
Speaker 96
Speaker 35
Speaker 116
Speaker 30
Representative Fredrick J. Love
Unverified
Speaker 120
Senator Gary Stubblefield
Unverified
Speaker 132
Speaker 133
Speaker 97
Speaker 100
Speaker 142
Speaker 9
Speaker 143
Nick Fuller
Unverified
Speaker 146
Representative Johnny Rye
Unverified
John Scrumshire
Unverified
John Scrimshire
Unverified
Speaker 166
Speaker 164
Speaker 171
Speaker 12
Speaker 190
Speaker 186
Speaker 172
Representative Mark Lowery
Unverified
Speaker 203
Speaker 204
Speaker 212