Public Gaming International May/June 2020

56 PUBLIC GAMING INTERNATIONAL • MAY/JUNE 2020 I n early March, members of the Multi-State Lottery Association convened at PGRI Miami to lay the groundwork for Powerball® and other organization initiatives in the upcoming fiscal year. While the spread of COVID-19 was starting to gain more attention in the United States, it was not on MUSL’s list of agenda items to address. But in a matter of weeks, the public health crisis would compel the Association to make a series of immediate changes to sustain America’s favorite jackpot game during the pandemic. By late March, decreasing Powerball sales combined with plummeting interest rates took direct aim at Powerball’s jackpot prize. To address the unprecedented circumstances, the Powerball Product Group voted to eliminate guaranteed starting jackpot amounts and minimum jackpot increases. The Group gave authority to the Group Chair and Vice-Chair to determine the beginning jackpot and subsequent jackpot amounts. As has always been the case, once the jackpot is funded, any successive jackpot is based on current game sales and interest rates. “This was a tough decision for the Powerball Product Group to make, but it was the right one,” said Gregg Mineo, Powerball Product Group Chairman and Maine Lottery Director. “Every lottery relies heavily on Powerball sales, and we could not jeopardize the financial future of the game, especially when lottery proceeds are going to be increasingly vital to our legislatures and beneficiaries in the year ahead.” “Powerball is synonymous with big jackpots, including the world record $1.586 billion jackpot,” MUSL Executive Director J. Bret Toyne said. “The moment the game is not performing at that level, players and the media want to know when it will rebound.” “Unfortunately, like many other industries, we can’t predict when normal consumer behaviors will resume or when interest rates will reverse their downward course. For that reason, MUSL has focused its efforts on what it can control and that is providing essential services to its member lotteries during this challenging time,” Toyne added. In recent weeks, MUSL has performed 140 emergency drawings of jurisdictional lottery games under its Board-approved Draw Services Agreement. Following two incidents of reported COVID-19 cases within the building that houses the DC Lottery, Executive Director Beth Bresnahan took the precautionary measure of closing employee access to lottery office spaces for two weeks in mid-April. While the DC Lottery was largely setup for remote operations, draw operations required staff to be on-site. To continue draw operations, the DC Lottery reached out to MUSL for assistance with the twice-daily DC2, 3, 4, and 5 games. “These four games represent 53 percent of our revenue and are critical in supporting the DC Lottery’s mission of generating revenue for the District’s General Fund,” Bresnahan said. “Without the MUSL draw and audit team’s assistance during these two weeks, we would have not been able to carry out this core component of our operations.” In addition, the Association has organized weekly conference calls of lottery general counsel to discuss industry issues and changes prompted by the public health crisis. Discussion topics have included state lottery refund programs for multi-draw tickets purchased before the Powerball rule change, revisions to starting jackpots amounts of jurisdictional lottery games, and safety precautions for prize claim centers and lottery sales representatives. “Attorneys who work in the lottery arena are experiencing issues that perhaps they have never addressed on a widespread basis,” MUSL General Counsel Patricia Lantz said. “Our weekly calls have demonstrated the expertise that each has, and the willingness to share knowledge and possible solutions is a great testament to the camaraderie and professionalism that they display day in, and day out, no matter the circumstances.” The Association is also moving forward on several Powerball projects that were in the works prior to the virus outbreak, including enhancing the Powerball draw show with a new look and drawing equipment as well as a second installment of the First Powerball Millionaire of the Year promotion. This year’s FPMOY promotion will not feature player trips to New York City to celebrate New Year’s Eve. In the coming months, MUSL will work closely with dick clark productions to produce a compelling broadcast segment that promotes the Powerball brand and awards $1 million to a lottery player. “We’re going to have to get creative in how we randomly select and feature the finalists of the $1 million drawing,” said Rebecca Hargrove, Chair of the MUSL Marketing and Promotions Committee and Tennessee Education Lottery President and CEO. “In spite of the pandemic, dick clark productions has already produced a successful program for the Academy of Country Music on CBS. The NFL DRAFT 2020 also moved to a new format this year, and according to the league, pulled in record viewership for Round 1. So, I have full confidence that a Powerball segment can be successfully executed with an alternative format.” Later this year, the MUSL Board of Directors will meet, either in-person or via teleconference, to discuss the Association’s Strategic Plan. The effects of the public health crisis will likely shape discussions surrounding MUSL’s immediate and long-term goals. Toyne predicts that there will be an increased interest among members of how to offer online Powerball sales. Several member lotteries have already implemented iLottery sales, including the Pennsylvania Lottery, which launched its iLottery platform in May 2018, adding Powerball and Mega Millions purchases in January of this year. “What we’ve learned in Pennsylvania, prior to this pandemic, is that our online Lottery sales have actually increased business at our brick-and-mortar retailers,” said Pennsylvania Lottery Executive Director Drew Svitko. “Since the pandemic hit, our online play has increased an estimated 30 percent when compared to previous weeks, as record numbers of players play our online games, including purchasing Powerball and Mega Millions tickets. As consumers change their buying habits, we must change with them and be ready to support their needs.” MUSL NEWS MULTI -STATE LOTTERY ASSOCIATION NAVIGATING THE PANDEMIC: MUSL POSITIONS ITSELF FOR YEAR AHEAD