Public Gaming March/April 2015 - page 46

46
// Public Gaming International // March/April 2015
In the fall of 2012, the Maryland
General Assembly passed legislation
authorizing the Maryland Lottery
and Gaming Control Agency
(MLGCA) to establish and regu-
late a new Instant Ticket Lottery
Machine (ITLM) program for
veterans’ organizations. These
regulations, which operate un-
der Lottery law and not gaming law, outline
specific details about sales and cashing commissions, game and prize
structure, daily operation of the equipment, installation costs and
responsibilities for maintenance of the machines. In addition, the
regulations allow for the application and licensing of veterans’ service
organizations to have the ITLMs on site.
In 2014, with the approved regulations in place, the MLGCA de-
buted its ITLM program and encouraged a targeted group of 154
Maryland organizations to join. Of those prospective veterans’ orga-
nizations, 60 percent were American Legions and the remaining orga-
nizations were Veterans of Foreign Wars and other qualifying groups.
The MLGCA was simultaneously soliciting bids from gaming
vendors and in February 2014, received state approval to award the
contract to Diamond Game.
While the MLGCA’s core mission is to generate revenue for the
state of Maryland, the ITLM program was created specifically to
generate revenue that supports the veterans’ organizations. In fact,
these groups receive 50 percent of the proceeds after vendor costs are
paid. The agency, in turn, receives 8.26 percent of the net proceeds,
of which 10 percent goes to the Maryland Veterans’ Trust Fund.
With their spinning video reel animation and touch-screen
monitors, these electronic devices are creating a growing fan base
among Maryland’s veterans. The payout rate of 90.5 percent and
the revenue generated on the equipment is also a key motivator for
players. The ITLMs, which dispense preprinted instant tickets, are
estimated to generate net proceeds of $100 per machine per day for
each veterans’ organization.
Tom Slevin hit the ground running in 2014 when he was promot-
ed to corporate accounts manager for the ITLM program, where he
quickly prepared his presentations and took the show on the road.
Traveling was routine for this longtime agency employee. He got
his start in 2005 as a sales district manager, where he worked with
hundreds of Lottery retailers from the Eastern Shore of Maryland
to Southern Maryland and in several central Maryland counties.
The 1999 graduate of the University of Maryland College Park has
a Bachelor’s Degree in Marketing, which he put to use immediately
as he presented the program to interested veterans’ groups.
Paul Jason PGRI:
With all of the challenges lotteries are facing to
achieve their revenue numbers, new products and marketing strategies
that expand on current technologies are becoming increasingly impor-
tant. How has the Maryland Lottery utilized the ITLM program and
technology to help veterans raise funds for their programs?
Tom Slevin, Corporate Accounts Manager, MLGCA:
From
September 2014 to March 2, 2015, the ITLM Program generated
more than $960,000 in revenues to benefit the 42 participating veter-
ans’ service organizations. The Lottery negotiated into the Diamond
Game contract that the vendor will supply new game themes and
updated technology to benefit the program participants and keep
player interest strong. This program is clearly meeting its intended
purposes: upholding the state’s responsibility to regulate gaming at
Maryland veterans’ service organizations west of the Chesapeake Bay
and creating a new source of revenue for the organizations.
How many veterans’ posts currently have ITLM kiosks and how many
kiosks are currently deployed in the program? What are the sales the
program has generated since inception?
T. Slevin:
The agency and Diamond Game have installed 160
ITLMs in 42 veterans’ service organizations through March 2,
2015. Both numbers will increase this spring as the program adds
more locations. Since its inception, the program has generated
more than $20 million in sales.
How has the equipment vendor Diamond Game aided you in making
the program a success?
T. Slevin:
Diamond Game has proven to be a valuable partner
throughout all stages of the program’s implementation, from plan-
Veterans Find Success
with Maryland’s
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