42 / 100
42
// PUBLIC GAMING INTERNATIONAL // September/October 2016
attractions like the Verizon Center, the pre-
mier sports and entertainment venue in the
city. The DC Lottery has launched basket-
ball and hockey-themed tickets that have
been hot sellers, as well as Money Machine
nights that have served as gateway games to
those unfamiliar with the lottery and fun
introductions to the DC Lottery for those
used to playing in their home states. Add
to that our partnership with the Washing-
ton Nationals, our professional baseball
home team and the introduction of the $2
Racing Presidents scratcher that has been
a homerun with players and with four
scenes, become a collector’s item among
baseball enthusiasts.
Unlike several other lottery entities, the
DC Lottery does not have a cause-specific
designation. Proceeds from the sale of DC
Lottery games are channeled directly to the
District’s General Fund which supports es-
sential city services like public safety, edu-
cation, and infrastructure.
In terms of reports, we are accountable
to both our city government and the fed-
eral government. My boss is Chief Finan-
cial Officer of the District of Columbia
Jeff DeWitt. It’s a sizeable title for a man
with the responsibility of the city’s finan-
cial health and prosperity in his hands. He
manages every revenue-generating entity of
the District’s government from tax collec-
tion to lottery transfer. He oversees all fi-
nancial functions of the city. He is very en-
gaged, astute, and understands the nuances
of dual accountability—to the District as
well as Congress, as he in turn reports to
the District’s congressional oversight com-
mittee. Like all government lotteries, we
are dedicated to serving the best interests of
our stakeholders.
Sounds like quite a turnaround from some of
the previously reported challenges faced by the
DC Lottery. How did you do it?
T. Cohen:
We are a ‘small but mighty’
agency that likes to say we’re experts at turn-
ing lemons to lemonade. It’s no secret the
challenges the agency faced during the in-
stant ticket shortage that began in mid-2013
when our entire product line of scratcher
tickets ran the risk of near depletion for
almost two years. That absence of product
was a significant hit in sales with resound-
ing impact to our bottom line and trans-
fer. Instant ticket sales plummeted by $27
Million, or 45% from their high in FY12,
resulting in over $3 Million in lost transfer
as of FY15. But, you make the best of what
you have. You get innovative. You dig in. We
became a more efficient organization reduc-
ing operating expenses, streamlining busi-
ness operations, and cross-training staff. We
became very aggressive in introducing new
games and promotions to our other fran-
chise games—particularly the DC Fast Play
family of games. We replaced instant ticket
facings with DC Fast Play selections. Dur-
ing this period, we also introduced newTap-
N-Play games and the multi-state Lucky for
Life. Players transitioned nicely to the new
offerings. When our full line of scratchers
was reintroduced in 2015, we took huge ef-
forts to thank our players for playing and
staying with the DC Lottery with player
reward promotions of never-before propor-
tions and payouts of more than $1,000,000
in total prizes. And, again players have re-
sponded overwhelmingly. Our Second
Chance contests have seen marked increases
in participation, setting new benchmarks
for entries and prize payouts.
Since reinstatement, instant ticket sales
have been robust. FY16 sales are tracking
more than 60% positive over last year’s
sales—a direct result of the return of in-
stant tickets to our game portfolio.
The federal shutdown of October 2013
had a seismic impact throughout the coun-
try. We temporarily suspended winning
ticket redemption. But, again—lemons to
lemonade. Days before the shutdown, we
awarded a $1 Million scratcher winner;
two months later, we had a $2 Million
Powerball winner. The lottery must go on.
The recent Best Practices study—that
named us among the top ten lotteries in
the nation—confirmed that we were doing
some things right. We’re ranked 7th out of
45 lotteries in the most important area of fi-
nancial measure-operating income per cap-
ita. The study involved evaluations of more
than 50 organizational processes, practices,
and systems. The DC Lottery received high
marks. Specifically, ten processes and sys-
tems were noted as best practices while 31
others were highlighted as exemplary.
We learn a lot about ourselves during pe-
It’s no secret the challenges the agency faced
during the instant ticket shortage that began in
mid-2013 when our entire product line
of scratcher tickets ran the risk of near depletion
for almost two years. That absence of product was
a significant hit in sales with resounding impact
to our bottom line and transfer. Instant ticket sales
plummeted by $27 Million, or 45% from their
high in FY12, resulting in over $3 Million in lost
transfer as of FY15. But, you make the best
of what you have. You get innovative. You dig in.
We became a more efficient organization reducing
operating expenses, streamlining business
operations, and cross-training staff. We became
very aggressive in introducing new games and
promotions to our other franchise games.