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Brief History of Washington's Lottery — WSL, Presentation, FY18, March 2017

Issuer
Congressional materials
Date
2025-01-22

Summary

A presentation slide deck from Washington's Lottery giving an overview of the agency. It covers the lottery's history since HB 1251 in 1982, its commissioners, mission and beneficiaries, including the Washington Opportunity Pathways Account. A chart reports an FY24 total distribution of $1.03 billion, with prizes of $636.28M and a general fund share of $58.19M. Other slides describe draw and scratch games, FY24 scratch sales of $664,329,886, a retailer count of 3,658, required audits, player profiles and responsible gambling activities, including a Sustaining Level verification granted on 12/23/2024. The deck closes with future challenges and agency contact slides.

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Cite this document

“Brief History of Washington's Lottery — WSL, Presentation, FY18, March 2017.” Original at app.leg.wa.gov, dated 2025-01-22. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-01-22-2025-01-22-a32364-d275626-washington-s-lottery-lottery-overview-ppt/, SHA-256 89a6df7023179bc5d6865202f14ac8af0bc2bc5dfb9fcf4d6d0bfaa3bd68588e.

Full text

         WSL
 Washington’s
PRESENTATION
       Lottery
        FY18
          MARCH 2017
Brief History of Washington’s Lottery


 • 1982 - HB 1251 creating Washington’s Lottery signed by Governor Spellman on July 16
 • 2000 - Voters approved an initiative redirecting Lottery revenue contributions from the
   general fund to the Student Achievement Council and the Education Construction
   Fund
 • 2002 - Joined multi-state Mega Millions
 • 2009/11 - Some Lottery funds redirected to the general fund and the Education Legacy
   Trust Fund
 • 2009 - Joined multi-state Powerball
 • 2010 - SB 6409 redirected Lottery revenue into newly created Washington Opportunity
   Pathways Account (WOPA), stadium debt reduction, problem gambling prevention,
   general fund, and economic development
 • Statutory mandate to “produce the maximum amount of net revenues for the state
   consonant with the dignity of the state and the general welfare of the people.” RCW
   67.70.040(1).

                                                                                             2
Washington’s Lottery Commissioners




 Judy Giniger   Schuyler Hoss   Rudy Mendoza   Eileen Sullivan     Vacant
     Chair      Commissioner    Commissioner   Commissioner      Commissioner
    Seattle      Vancouver        Kennewick        Tacoma
  Term ends       Term ends       Term ends       Term ends
    8/2026          8/2029          8/2027          8/2028




                                                                                3
Vision, Mission, and Values


                                           Vision

                To be as innovative leader, creating fun gaming experiences
                            that benefit the people of Washington.


                                          Mission

            To offer games of chance with integrity and imagination to maximize
                                 contributions to our state.


                                          Values

        Integrity * Responsibility * Collaboration * Customer-focus * Creativity * DEIB



                                                                                          4
Where Does the Money
Go?

                       5
Lottery Beneficiaries



 • WASHINGTON OPPORTUNITY PATHWAYS ACCOUNT (WOPA)
   Washington Grant, college scholarships, state financial aid programs, early childhood
   education and assistance program (ECEAP), charter schools
 • ECONOMIC DEVELOPMENT RESERVE ACCOUNT
   1/3 of unclaimed prizes
 • PROBLEM GAMBLING ACCOUNT
   0.26% of net receipts (sales less prizes)
 • GENERAL FUND
   Amount of Powerball profits that exceed $102m when combined with profit from in-
   state games
 • LUMEN FIELD (THRU DEC 2020)
   $14.2M in FY21 (all payments are completed)

                                                                                           6
Where the Money Went Fiscal Year 24

                                        FY24 TOTAL DISTRIBUTION : $ 1.03 BILLION



                                1                                  1    PRIZES: $ 636.28M (61.74% )


                                                                   2
                                                                   3    COST OF SALES : $ 70.30M (6.82% )


                                                                        RETAILER COMMISSIONS : $ 51.50M (5.00% )
                                                                   4
                                                                   5    GENERAL FUND : $ 58.19M (5.65% )




       6                                     2                     6    ADMINISTR ATION : $ 16.88M (1.64% )


                        4 3                                        7*   ECONOMIC DEVE LOPMEN T: $ 6.70M (0.65% )


             5                                                     8*   PROBLEM GAMBLING : $ 0.79M (0.08% )


          COST OF DOING BUSINESS                    PROFIT              *Amounts not displ    a yed in g raph

      The Legislatu re decides the beneficiaries and h        ow
      m uc h the Lot tery can spend on administ      ration .
                                                                                                                   7
Draw Games


             8
Draw Games – Jackpot/Cashpot


                  • Powerball
                     •   National game; $2 purchase; starting jackpot $40 million; draws Mondays,
                         Wednesdays & Saturdays; odds 1 in 292 million; largest jackpot $2.04
                         billion


                  • Mega Millions
                     •   National game; $2 purchase; starting jackpot $40 million; draws Tuesdays
                         & Fridays; odds 1 in 303 million; largest jackpot $1.602 billion


                  • Lotto
                     •   WA State game; $1 purchase (2 plays); starting jackpot $1 million; draws
                         Mondays, Wednesdays, & Saturdays; odds 1 in 6.99 million


                  • Hit 5
                     •   WA State game; $1 purchase; starting cashpot $100,000; draws daily; odds
                         1 in 851,000


                                                                                                    9
Draw Games – Daily


                     • CashPOP
                       •   WA State game; $5 purchase; top prize $500; odds 1 in 7.50


                     • Match 4
                       •   WA State game; $2 purchase; top prize $10,000; odds 1 in 10,600



                     • Daily Keno
                       •   WA State game; $1 purchase; top prize $500,000 (10 of 10); odds 1 in 8.91
                           million


                     • Pick 3
                       •   WA State game; $0.50 purchase; top prize $500; odds 1 in 1,000




                                                                                                  10
Scratch Products


                   11
Scratch Games


  • Price points
    • $1, $2, $3, $5, $10, $20, $30

  • How do we develop our game
    ideas?
    • Scratch Ticket Partners
        • International Game Technology (IGT)
        • Scientific Games (SG)
        • Pollard Banknote
    • Lottery Staff
    • Instant Product Manager


  • FY24 Sales: $664,329,886
    • Over 64.6% of our total sales

                                                12
Sales: FY2015 – FY2024

           $800


           $700


           $600


           $500


Millions   $400


           $300


           $200


           $100


             $-
                  FY2015   FY2016   FY2017   FY2018      FY2019      FY2020    FY2021    FY2022    FY2023       FY2024
                                                                              Pandemic            Record JPs   Record JPs
                                                      Scratch     Draw


                                                                                                                            13
Operations

             14
Washington’s Lottery Region Map




               *Regional office locations: Vancouver, Federal Way, Everett, Tri-Cities, and Spokane
                                                                                                      15
Spokane DOI Store
Lottery Kiosks


 • Tacoma Mall              • Alderwood Mall          • SeaTac Airport
    • FY24 Sales $884,852     • FY24 Sales $173,024     • FY24 Sales $4,003,342
    • Installed December      • Installed July 2024     • Installed April
      2012/rebuilt 2023                                   2016/moved 2022




                                                                                  17
Retailer Network FY24


     • Current retailer count: 3,658
     • Current vending machines installed: 2,216
        • FY24 vending sales $565,926,191
     • Corporate accounts
        • 1,464 accounts
        • Sales FY24: $595,857,546
     • Independent stores
        • 2,224 stores
        • Sales FY24: $404,225,925
     • Tribal locations
        • 54 locations
        • Sales FY24: $20,355,876
     • Lottery Owned Locations
        • Sales FY24: $7,586,352.50

                                                   18
Lottery Audits


      • Required
         • Annual Prize Payment Audit
         • State Auditor Accountability Audit
         • Management Review by OFM
         • Internal Control Officer
         • FY25 Audit Plan
         • Enterprise Risk Management Plan
         • Quarterly audit on gaming system access controls
         • MUSL audit
      • Enhanced Scrutiny
         • Annual Certified Financial Review
         • Independent auditors at all drawings
         • Monthly ticket reconstruction audit
         • Strict draw procedure including multiple officials witnessing the drawing
                                                                                       19
Player Profile

                 20
 THE DISCOVERY SQUAD
  “We’re passionate about seeking out new things to try”
                                                         CONFIDENT - ADVENTUROUS - FUN-LOVING
Who they are                                                                                                  How they play
• Core Ages: 25-44                                                                                            • More likely to play regularly
  28-35, for creative imagery                                                                                   for all games - and have the highest play of Hit 5,
   (aspirational to over 35s, without appealing to under-20s)                                                   Match 4 and Pick 3
• No gender bias - 51% male, 49% female                                                                       • Love to try new games
• Married with kids - probably under 11                                                                         using the site and app to learn about new games,
                                                                                                                and new chances to win prizes
• Live in and around cities
  and bigger suburbs                                                                                          • Started playing in the last 6 - 10 years:

• Educated, with a good job                                                                                   • More likely to think playing is fun
                                                                                                                as well as a chance to win
   More likely to have Bachelors’ or more
                                                                                                              • 95% have a positive opinion of Washington’s Lottery
   Above average Household Income ($100k+)
   in Customer Service, Sales & Office Roles

                                                                                                              How see themselves
Key Personality Traits + Characteristics
• Experience Seekers:
  Challenge themselves to do new things
                                                                              FPO                             • A Friend & an Individual
                                                                                                              • Friends are important to the Discovery Squad
• Empathetic Observers:                                                                                       • Among their social circles, they’re usually the first
  Take in the world around them;                                                                                of the bunch to try a new product
  Think about how they can help the environment; More likely to support brands with a cause                   • They value confidence, speaking up, wittiness
• Optimistic Aspirers:                                                                                        • It’s notable that they are still “comfortable eating
  Life should be as fun as possible; Good at fixing things; Would like to set up their own business one day     in a restaurant alone” - leaving them at the
• Gregarious Connectors:                                                                                        intersection of a gregarious friend and an
  Friends are important; Appreciate & pursue learning about other cultures                                      individualistic experience seeker
WA Lottery Players: a Snapshot

                       WA Lottery has more under 44s than the US Lottery Average                          WA Players   US Players
                                             WA Players   US Players
                                                                                                 51.19%


                                                                         22%               22%
                                                                               22%
                                                                                                           50.59%
                                                                                     20%


                                           18%
                                                 17%      17%   17%



                      14%
                            13%                                                                                                  49.41%




  9%    9%                                                                                                              48.81%




   18-24                25-34                35-44          45-54         55-64        65+           Male                  Female


  Source: Simmons Local (WA), 18+ Adults, Spring 2024                                                                                     22
Economically, Lottery players in Washington are very similar to
the average

                                         Household Income of Players Compared to the WA Adult Population
                                                          WA Lottery Players   All WA Adults



                                                                 29%
                                                        28%

                                                                                 25%                       25%
                                                                                          25%                      24%
                                  22%
                        21%




                         Under $50k                      $50k - $99k             $100k - $149k               $150k +


  Source: Simmons Local (WA), 18+ Adults, Spring 2024                                                                    23
Responsible Gambling

                       24
Responsible Gambling Verification


     • Offered by the North American Association of State and Provincial
       Lotteries/National Council on Problem Gambling
     • Five-year process working through three progressive levels – Planning,
       Implementation, and Sustaining
     • Each level involves in-depth evaluation of:
         • Employee training
         • Retailer training
         • Public education and awareness
         • Product oversight
         • Advertising
     • Granted Sustaining Level on 12/23/2024

                                                                                25
Other RG Activities


 • Participating in the Disordered Gambling Advisory Workgroup
 • Annual “Gift Responsibility” campaign
 • Promoting Problem Gambling Awareness Month each March
 • Promoting responsible play in large and small ways
 • Ongoing partnership with ECPG
 • Member of NCPG




                                                                 26
Future Challenges

                    27
It’s Not 1982 Anymore


  • Increasing competition for entertainment dollars
  • Ongoing changes to
       technology
  • Evolving player
       expectations
  • Scams that threaten
       the public’s trust




                                                       28
THANK YOU
Contact Information


     Joshua Johnston, Director
     joshua.johnston@walottery.com
     360-810-2878

     Cassi Villegas, Deputy Director
     cassi.villegas@walottery.com
     360-918-3103

     Kristi Weeks, Director of Legal Services and External Affairs
     kweeks@walottery.com
     360-810-2881




                                                                     30


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