Colorado Lottery New Game Research Collaborative Review June 15, 2012
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Transcript of Colorado Lottery New Game Research Collaborative Review June 15, 2012
Colorado Lottery New Game ResearchCollaborative Review
June 15, 2012
Prepared by:
10532 NE 68th Street – Suite D200, Kirkland, WA 98033(425) 827-6111 [email protected]
Colorado Lottery New Game Research 2
Contents
Subject Page
Research Objectives, Methodology, etc. 2
Executive Summary 7
Detailed Findings 28
5 Card Cash Game Review 29
Lucky in Life Game Review 43
Colorado 3 Game Review 60
Lotto Plus Game Review 77
New Game Preference 93
Forecast Dynamics 98
Demographics & Respondent Profile 104
Appendix 108
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Colorado Lottery New Game Research 3
Research ObjectivesOverall New Game Research Project Objectives:• Provide insights into trial likelihood and long-term game revenue potential for the new games, specifically
to replace Match Play.• Determine opportunities to optimize the current Lotto game.• Estimate the business impact on the current Colorado Lottery portfolio; recommend specific games for
pursuit, if any.• Identify issues and opportunities for enhancement for each of the prospective games in terms of their:
– Game design,– Positioning/Messaging, and– Marketing requirements.
Quantitative Research:• Determine if any of the games could achieve a $0.08 per cap• Isolate the Lotto Plus upside• Recommend games for development• Provide guideposts to increase success
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Colorado Lottery New Game Research 4
Research Methodology
• 1,003 online interviews were conducted among Colorado adults by Crestwood Associates between May 7, 2012 and May 15, 2012; average interview length was 22 minutes.
• Respondent criteria was as follows:– 18 years of age or older– Colorado residents– No members of the household working in market research, for a gaming company, or for a retailer
engaged in the selling of Lottery tickets– All were past 6 month Lottery players
• Quotas were identified and maintained for the key Colorado Lottery segments:– C-Store Dreamers (n=229)– Jackpot Hounds (n=220)– Young, Entitled, Spontaneous Men (n=67)– Female Fun Squad (n=242)– Traditional, Older, Small Splurgers (n=245)
• To ensure that collected data was representative of the true demographic makeup of Colorado, data was weighted according to the state’s 2010 US Census data for age, sex, ethnicity, and race.
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Colorado Lottery New Game Research 5
Overall Research Plan
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New Lottery Game Success Components
New Game
Success
Initial Game Development
Focus Groups:Boulder – Denver
Seven Games
Quantitative Research:n=1000
Four Games
Analysis and Recommendations
Go To Market
Colorado Lottery New Game Research 6
Games Evaluated in Quantitative ResearchPlayers were exposed to a game concept, which was then removed prior to their being asked for top-of-mind reactions. The concepts were then shown again for the player to refer to in answering several more, in-depth questions. Full size slide concepts can be found in the Appendix to this report.
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Colorado Lottery New Game Research 7
Evaluation Process and Survey Flow
Game descriptions were presented using a variant of the Crestwood PreVuTM process designed to best capture top-of-mind reactions. Overall benefits of the PreVuTM process include:
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Screener
• Gender/Age/Residency• Industry Exclusion• Ethnicity• Current Play and Spending Behaviors• Segment Batteries
• Initial Tournament for Cannibalization Estimates
• Expected purchase likelihood• Expected purchase frequency• Expected games purchased per play• Ease of understanding
• In Depth Game Review• Amount required for Satisfactory
Win• Loss Tolerance• Unique game attribute ratings
• Game Preference• Second Tournament for
Cannibalization Estimates
• Demographic Profiling
1 Timed viewing of concept(s):Respondents are exposed to a single concept or image for a limited period to replicate the brief, initial experience the consumer uses to make an initial evaluation.
2 Top-of-mind exploration:Once the concept disappears, respondents are asked a series of questions aimed specifically at gathering initial communications and top–of-mind reactions. The back button is disabled to insure all responses are unaided.
3 In-depth investigation with concept(s) present:Respondents answer additional probes with the concept present. Exposure time and responses are not controlled.
4 Side-by-side comparison of all the concepts: Concepts are viewed together and preferences are obtained. This comparison provides additional insights and exacerbates differences between concepts.
Colorado Lottery New Game Research 8
Executive Summary
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Colorado Lottery New Game Research 9
Overall Observations• Overall, one game, 5 Card Cash appears to have the potential to meet the minimum per cap target:
– 5 Card Cash was perceived as both easy to understand and unique.– Key defining characteristics are the 2 games in 1, cards theme, prize structure and instant win
component.– While player expectations are similar to other games, the daily play and higher churn odds provide a
higher sales expectation.• The Lotto Plus game appeals to current Lotto Players and should generate incremental 10-15% Lotto sales:
– Lotto Plus has a targeted appeal among current players.– The game is not expected to significantly change overall Lotto play patterns.
• Neither Colorado 3 nor Lucky in Life appear to have the opportunity to break through.– The simplified Colorado 3 game was still too difficult to understand:
• The core of prior Pick 3 players was both small and not particularly inspired.• Key appeal of the game was three numbers, choosing how the numbers come up, and $0.50
wagers.• Projected play patterns were consistent with other Western jurisdictions, and thus was
primarily limited to a small core of players.– Lucky in Life suffered from lower uniqueness and the odds hurt the game.
• Players like the top prize and the lower level win chances.• Little enthusiasm was generated, and only a few would be loyal to the game.
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Colorado Lottery New Game Research 10
Stated and Estimated Purchase Intent
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• While stated purchase intent for 5 Card Cash, Lucky in Life, and Lotto Plus was fairly high, actual trial is anticipated to be much lower.
• Assuming 100% awareness, Crestwood estimates that 21% would try 5 Card Cash, 17% would try Lucky in Life, 15% would try Lotto Plus, and 13% would try Colorado 3.
• Only 5 Card Cash had strong Very Likely to purchase intent.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?
Stated and Estimated Purchase IntentBase = All Respondents (n=1,003)
A. 5 Card Cash B. Lucky in Life C. Colorado 3 D. Lotto Plus
33%Cd
34%Cd
24%
30%c
17%BCD 12%
10%
11%
50%
46%
34%
40%
21%17%
13%15%
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 11
Lotto Plus Top of Mind Segmented Purchase Intent
Total Lotto Players Non Lotto Players
23%
7%
35%
13%
13%
13%24%
25%
24%
30%
37%
23%
11%17%
5%
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• Overall, Lotto Plus is more appealing to current Lotto Players.• 55% of Lotto Players and 28% of Non Lotto Players indicated they were somewhat or very likely to
purchase Lotto Plus.• Lotto play appears to be more discriminating than Player Segmentation for Lotto Plus as an “add-on.”
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Lotto Plus Top of Mind Purchase Intent – Lotto Players vs. Non Lotto PlayersBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 12
Colorado 3 Top of Mind Purchase Intent by Pick 3 Awareness
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• Those who have heard of or played Pick 3 from another Lottery are more interested in playing Colorado 3 than those previously unaware of the game.
• 24% of those aware of Pick 3 consider themselves very likely to purchase Colorado 3, whereas 10% of those unaware would be very likely to purchase the game.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games? Q20. Have you ever heard of or played the game Pick 3 from another Lottery?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado 3 Top of Mind Purchase Intent by Pick 3 AwarenessBase = All Respondents
Aware of or Played Pick 3 (n=173), Unaware of Pick 3 (n=534)
Aware of or Played Pick 3 Unaware of Pick 32% 7%
18%18%
23%
30%
33%
35%
24%
10%
Colorado Lottery New Game Research 13
Most Preferred New Game Concept
• 5 Card Cash was most appealing overall and particularly favored by the C-Store Dreamers, Female Fun Squad, and Jackpot Hound segments.
• Interestingly, 5 Card Cash was preferred over Lucky in Life by nearly 2:1 among 18 to 34 year old players while among those 35 and older were evenly split with 35% preferring 5 Card Cash and 32% preferring Lucky in Life.
• Lucky in Life preference was stronger among those who play traditional jackpot games, such as the C-store Dreamers, Jackpot Hounds, and those age 35+.
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[A] Total
[B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad
[E] C-Store Dreamers
[F] Jackpot Hounds
O. Ages 18 to 34
P. Ages 35+
37%
30%
32%
38%
44% abC
37%
43% p
35%
29%
26%
27%
29%
30%
31%
22%
32% O
18%
24% d
20% d
14%
15%
19%
19%
17%
16% e
21%
21% aEf
19% ef
11%
13%
16%
16%
5 Card Cash Lucky in Life Colorado 3 Lotto Plus
Most Preferred New Game ConceptBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245), Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot
Hounds (n=220)
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Q12. Please rank each of the concepts you have just evaluated in order of overall preference with 1 being the game you most prefer and 3 being the game you least prefer.
Colorado Lottery New Game Research 14
Favorite Games – Select Open Ends
Colorado 3Perceived winnability and costs were considered strengths. There was also some recognition of Numbers play from other jurisdictions.
“Best chance to win.”“Because it has good odds and a good price.”
“Less risky.”“Quick & easy.”
“I like the $.50 bets.”“ONLY COST $1.00 TO PLAY.”“Kind of like horse betting.”
“Because we had a game similar to this in Michigan.”“It was fun, appeared to be a better deal.”
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Lotto PlusAs an add-on to the current Lotto game, Lotto Plus’ strengths were it’s ease of application, it’s cost and the 4X multiplier factor.
“Easy to understand.”“Easy to understand - bigger payoff.”
“I like lotto already so $1 more doesn't seem horrible. Also like the winnings times 4.”“Quadruple the winnings.”
“4 times win.”“Best result possibilities for the money.”
5 Card CashEase of play, the Poker style theme, and odds were considered strengths.
“Easiest to play and understand.”“Simple, buy it! Check it! Celebrate!”
“It seemed the most fun.”“I like that you don’t have to select numbers”
“I like the Poker element and fact that you can spot a winner without having to wait for a drawing.”
“I like that the concept is different than a typical drawing and I prefer cards to other forms of gambling.”
“Seemed mostly likely to win.”“Better odds”
Lucky in LifeStrengths included the games top prize and the name. The game was also perceived to be different from existing games.“The whole appeal to me with a lottery is that it is possible to
win a jackpot that will change your life...the others games don't offer a real jackpot.”
“Like the concept of $1000 per day for life.”“1000 a day for 30 years top prize.”
“I LIKE THE NAME.”“I like the name and the fact that I can win $1000/day.”
“It has the best overall winnings and is the most different from games I already play. It is a good value for my money as well.”
Q14. Why did you select [Insert game most preferred from Q12 (Q12=1)] as the game you liked least?
Colorado Lottery New Game Research 15
Ease of Understanding & Differentiation
A. 5 Card Cash B. Lucky in Life C. Colorado 3 D. Lotto Plus
63%C
65%C
41%
68%aC65%
BCD
48%d
60%BD
43%
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• Overall, all games with the exception of Colorado 3 were perceived as easy to understand by 60% or more of those surveyed.
• 5 Card Cash and Colorado 3 were perceived as the most new and different.
Q6/Q7. Using the scale provided, how strongly do you disagree or agree with the following?
Ease of Understanding & Differentiation – Top-2 Box Summary (Agree)Base = All Respondents (n=1,003)
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 16
General Game Perceptions
This g
ame a
ppears
fun to play
In addition to
the t
op prize, I
like t
he other
prizes
availa
ble
I like t
he top priz
e
There
are l
ots of w
ays to
win th
is gam
e
I like t
he nam
e of th
is gam
e
This g
ame p
rovides
good va
lue for m
y money
I think t
his gam
e has
good odds
I think I
would play th
is gam
e reg
ularly
62%BCD
65%BCD
71%Cd 61%
BCD 54%CD
36%cD
36%CD 31%
CD
52%CD
57%CD
73%CD
50%D
55%CD
33%d
37%CD 30%
Cd42% 44% 47%
49%D
39%31%
31%d
21%
42%
49%c
66%C
36%
43%c
29% 26%26%
c
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• Overall, 5 Card Cash and Lucky in Life received the highest perception ratings.• Key differentiation was found in fun to play, prize structures and winnability.• Few agree however, that these games provide good value, have good odds, or believe they would play
these games regularly.
Q6/Q7. Using the scale provided, how strongly do you disagree or agree with the following?
General Game Perceptions – Top-2 Box Summary (Agree)Base = All Respondents (n=1,003)
Colorado Lottery New Game Research 17
Leverage Grid Analysis
The attributes reviewed were statistically linked to purchase intent to arrive at a derived motivation score. The motivational impact was plotted in relation to the perceived delivery of each of the attributes to highlight the most leveragable attributes to generate trial. A summary of the resulting plots, seen on the following page may be interpreted as follows:
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Opportunities Hot Buttons
Irrelevant Cost of EntryOr Baseline
Hot Buttons: Key Drivers. These are essential attributes that are perceived highly. Points of leverage – Promote.
Opportunities: Highly motivating but not universally perceived as well delivered. Potential paradigm shifters – Invest.
Cost of Entry: Although considered well delivered, will not create incremental business. Represent norms or standards – Maintain.
Irrelevant: Not seen as important. Insufficient motivation to build value; Efforts may have no effect - Ignore.
Perceived Delivery
Deriv
ed M
otiva
tion
Colorado Lottery New Game Research 18
Like that I don't have to pick any numbers
Like knowing if i've won instantly
Like the card theme
I can win with 2 JacksLike the nightly draw
This game is 2 games in 1
I'd play regularly
Has good odds
Good value for my money
I like the name
Lots of ways to win
I like the top prize
I like the other prizes available
Game appears fun to play
5 Card Cash Attribute Leverage• Strengths include the 2 games in 1 aspect as well as the game appears fun to play, promoting these will
have positive effect as they are moderately motivating.• Improving perceptions of I think I would play this game regularly and this game provides good value for my
money are opportunities as they are considered motivating but prospective players are not yet sold on them.
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Perceived Delivery
Deriv
ed M
otiva
tion
Opportunities Hot Buttons
Irrelevant Cost of Entry
Colorado Lottery New Game Research 19
Can win by just matching the Lucky Ball
Like that I can choose numbers or Quickpick
Would rather be paid over time
Like having 2 draws per week
I like that it's played only in CO, AZ and OK
I'd play regularly
Has good odds
Good value for my money I like the name
Lots of ways to win
I like the top prizeI like the other prizes available
Game appears fun to play
Lucky in Life Attribute Leverage• Strengths include appears fun to play, can win by just matching the Lucky Ball, I can choose my own
numbers or use Quick Pick, and I like the name. Note the prizes were not motivating.• Improving perceptions of I think I would play this game regularly and this game provides good value for my
money are opportunities as they are considered motivating but prospective players are not yet sold on them.
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Perceived Delivery
Deriv
ed M
otiva
tion
Opportunities Hot Buttons
Irrelevant Cost of Entry
Colorado Lottery New Game Research 20
Wagers start at just $0.50 per play
I only have to pick 3 numbers
I can play twice a day
I can choose how my numbers come up
Like that I can choose my own numbers
I'd play regularly
Has good odds
Good value for my money
I like the name
Lots of ways to winI like the top prize
I like the other prizes available
Game appears fun to play
Colorado 3 Attribute Leverage• Strengths include the game appears fun to play and I like that I can choose how my numbers come up,
promoting these will have positive effect as they are moderately motivating.• Improving perceptions of I think I would play this game regularly and this game provides good value for my
money are opportunities as they are motivating, but only among a small group.
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Perceived Delivery
Deriv
ed M
otiva
tion
Opportunities Hot Buttons
Irrelevant Cost of Entry
Colorado Lottery New Game Research 21
Makes me want to play Lotto more often
Like multiplying my winnings
I'd play regularly
Has good odds
Good value for my money
I like the nameLots of ways to win
I like the top prize
I like the other prizes available
Game appears fun to play
Lotto Plus Attribute Leverage• The only strength identified for Lotto Plus is that the game appears fun to play, promoting this will have
positive effect as they are moderately motivating.• Improving perceptions of I think I would play this game regularly and this game makes me want o play
Lotto more often are opportunities as they are considered motivating but prospective players are not yet sold on them.
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Perceived Delivery
Deriv
ed M
otiva
tion
Opportunities Hot Buttons
Irrelevant Cost of Entry
Colorado Lottery New Game Research 22
Lotto Plus Estimated % of Time Purchasing Game
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
50%C
48%
41%
49%c
52%C
55%abCd
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Those who would buy Lotto Plus would purchase the add-on about half the time.
Lotto Plus Estimated % of Time Purchasing GameBase = Would Buy Game
Total (n=783), Young, Entitled, Spontaneous Men (n=56), Traditional, Older, Small Splurgers (n=134),Female Fun Squad (n=194), C-Store Dreamers (n=200), Jackpot Hounds (n=199)
Q5a. What percent of the time do you think you might spend the extra $1 to add the Lotto Plus option?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 23
Key Business Dynamics
5 Card Cash Lucky in Life Colorado 3 Lotto Plus
Estimated Trial 21% 17% 13% 15%
Price per Ticket $2 $2 $0.50 ($1 increments)
$1 (incremental)
Estimated Annual Purchase Frequency Among Triers
39.3 19.4 37.4 18.8
Estimated Average Spend Per Year Among Triers
$288 $127 $302 $100
Satisfactory Win Requirements $10 $10 $5 $10
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• 5 Card Cash has the highest anticipated trial among the games evaluated followed by Lucky in Life.• Anticipated purchase frequency is highest for both the daily games.• Lucky in Life, while only trailing somewhat in trial, is hampered by lower purchase frequency and spend
per play.• Colorado 3 appears to have high spending, but is limited to a concentrated audience; sales are low due to
low trial and poor stickiness with 1:167 odds, thus will have a small sustaining base.• Lotto Plus has the lowest annual spend, even amongst those who say they will try the game.
Colorado Lottery New Game Research 24
Sustaining Sales Forecast
5 Card Cash Lucky in Life Colorado 3
Estimated Unaided Awareness
High 25% 25% 25%
Low 12% 12% 12%
Sustaining Gross Sales @ Awareness Levels
High $34.4M $11.5M $4.3M
Low $16.5M $5.5M $2.1M
Sustaining Per Cap @ Awareness Levels
High $0.13 $0.04 $0.02
Low $0.08 $0.02 $0.01
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• Game sales on all games will be dependent on awareness generated.• 5 Card Cash generates the highest sales potential, followed by Lucky in Life and Colorado 3 (Lotto Plus is
shown following)• Sales forecast is for sustaining levels, post introductory efforts.
Notes: 1. Awareness levels based upon SWAG and 2010 Image Study reported 46% Match Play “aided” awareness.2. Balance of forecast based upon key business metrics and Crestwood formula
Colorado Lottery New Game Research 25
Lotto Plus Sales Forecast
Current Players Non Players
% of Lottery Players 46% 54%
Current Sales $39.3M
Assumed Lotto Plus Awareness 100% 10%
Estimated Trial 22% 10%
Purchases per PlayLotto $1
Lotto Plus $1 $1
Gross Sales
Lotto $39.3M $0.4M
Lotto Plus $4.5M $0.4M
Total $43.8M $0.9M
Estimated Sales Increase
Within Segment 11% 100%
Total 14%
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• Lotto Plus is expected to increase Lotto sales by up to 14%; almost all gains will come from Players.• Minimal cannibalization of current sales is expected as the majority of transactions appear to be single
ticket.
Colorado Lottery New Game Research 26
Sources of Growth – Cannibalization of Existing Games
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• Much of the spending would result from cannibalization of existing products with 2-3% incremental sales.• More than half of the spending is predicted to be cannibalized from Scratch (24% - 27%) and Powerball
(27%) while 22% to 26% of the spending would come from the existing Lotto game.• Cash 5 would see few adverse effects.• Retained Match Play sales will probably merge into other games in general.
Sources of Growth and CannibalizationBase = All Respondents (n=1,003)
A. 5 Card Cash B. Lucky in Life C. Colorado 3 D. Lotto Plus
27% 25% 24% 22%
4% 3% 5%5%
3%3% 4%
3%
22%23%
26%24%
14% 16%12%
14%
27% 27% 27% 30%
3% 3% 2% 2%
Colorado Lottery New Game Research 27
Conclusions & Recommendations• All of the games tested were basically considered “Lottery” games and thus would only incrementalize the
business; there are no game changers.– None of the games showed truly broad based trial intent.– Play patterns were similar to existing games.– Games tested primarily cannibalized current sales.– Beyond trial interest, the main differences accrued to game construction.
• The 5 Card Cash game shows the greatest potential:– Has the highest sales potential.– Is perceived to be the most unique.– The game structure supports stronger “stickiness.”
• Instant win portion is a key differentiator.• Instant win odds support continued churn.• The daily frequency supports both planned and spontaneous play.
• The Lotto Plus game appears to have low risk and should be pursued as a niche opportunity:– Sales expectations appear to mirror post introductory jackpot game add-ons.– However, half of those who like the game will make it a regular play.– Unfortunately, it does not appear to add to the appeal of the base game, thus may not change long
term trends.
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Colorado Lottery New Game Research 28
Conclusions and Recommendations (con’t)• Key success factors for 5 Card Cash will be:
– Targeting at the current Lotto type players, such as C-store Dreamers and Jackopot Hounds; YES Men are a developmental opportunity
– Maintaining awareness at retail– Establishing the perception of fun and 2 games in 1, particularly leveraging the key differences of
instant win and the card theme– The 5 Card Cash name should be retained.– Leveraging the churn prize potential
• We have fears about continuing Lucky in Life:– The top prize appeal is well understood and strong– The game was not seen as unique, resulting in relatively low trial– Even though odds and stickiness appear in line, purchasing characteristics are low– We recommend closely monitoring the New England success to measure sustainability after the
abnormal awareness from the initial hit• Unfortunately, even after the simplification of the game, Colorado 3 could not break out:
– While there is higher interest among those aware of the game, those players only represent one quarter of the population
– Without a stronger tradition, stickiness at current odds is bothersome– Results are similar to other Western states.
June 15, 2012
Colorado Lottery New Game Research 29
Detailed Findings
June 15, 2012
Game Reviews
5 Card CashLucky in LifeColorado 3Lotto Plus
June 15, 2012Colorado Lottery New Game Research 30
5 Card Cash
5 Card Cash is a game where you get 2 ways to play your hand—an instant win game and an evening draw game with one ticket.
You can win up to $100,000 in the nightly drawings and $5,000 instantly.
When you play 5 Card Cash, your ticket will print with 5 quick picked playing cards.
You win instantly if your 5 Card Cash hand is a pair of Jacks or better, and the words "Instant Winner" will print right on your ticket. You can also win again in the nightly drawings by matching 2 or more cards in any order.
Cost per play: $2.
A fun new way to play Poker where your hand has 2 ways to win!
Sample ticket
Instant Win PrizesPoker Hand Prize Odds
Royal Flush $5,000 649,740 Straight Flush $1,000 72,193 4 of a Kind $100 4,165 Full House $40 694 Flush $25 509 Straight $15 255 3 of a Kind $7 47 2 Pair $4 21 Pair of J, Q, K, A $2 10
Overall Instant Win Odds: 6
Draw Game PrizesMatches Prize Odds
5 $100,000 2,598,9604 $1,000 11,0593 $25 2402 $2 16
Overall Draw Game Odds: 15
Check your instant win
hand to see if you won instantly!
Check your draw wins
that evening for the same
cards
Colorado Lottery New Game Research 32
5 Card Cash Top of Mind Purchase Intent
June 15, 2012
• Overall, half of all players surveyed indicated they would be somewhat or very likely to purchase 5 Card Cash.
• Jackpot Hounds are the most likely to purchase the game (75%) followed by C-Store Dreamers (60%), YES Men (54%) and members of the Female Fun Squad (48%).
• Traditional, Older, Small Splurgers found the game less attractive, only 19% indicated they were somewhat or very likely to purchase the game.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
5 Card Cash Top of Mind Purchase IntentBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
20%bdEF 11%
45%ABDEF
14% F 12% F5%
11% bF
5%
17% aBeF
20%ABEF
11% bf
5%
19%
29%adef
20%
17%
18%
15%
33%C 29%
C
15%
39%abC
34%C 53%
ABCDE
17% CD 25%CD
4% 9% C26%ACD
22%aCD
Colorado Lottery New Game Research 33
5 Card Cash Stated and Estimated Purchase Intent
June 15, 2012
• 5 Card Cash was most appealing to YES Men, C-Store Dreamers and Jackpot Hounds; at 100% awareness Crestwood expects a little over a quarter would try the game.
• Traditional, Older, Small Splurgers show very little interest in purchasing the game.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
33%29%
15%
39%
34%53%
17% 25%
4%
9% 26%
22%
50%55%
18%
49%
60%
75%
21%26%
6%
17%
28% 30%
5 Card Cash Stated and Estimated Purchase IntentBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 34
5 Card Cash Top of Mind Purchase Intent by Age & Ethnicity
June 15, 2012
5 Card Cash is more appealing to younger players and Hispanic or Latino players.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
5 Card Cash Top of Mind Purchase Intent by Age & EthnicityBase = All Respondents
Total (n=1,003), Age 18-34 (n=141), Age 35+ (n=862), Hispanic or Latino (n=86), Not Hispanic or Latino (n=917)
[A] Total [O] Age 18-34 [P] Age 35+ [Q] Hispanic / Latino [R] Not Hispanic / Latino
20% o0.132108035536138
23%aO 0.166740057881836 0.204381209788871
11% q0.110075579465335
0.116400420308576
0.0441444322426241
13% Q
0.188184381372309
0.191368853591495
0.186691542091302
0.20208102351414
0.186037345758726
0.331629639041987
0.311268976042013
0.341174453824977
0.288820879646499
0.338243605931063
17% P 26%P
0.12487037496506930%AR
0.146104405860846
Colorado Lottery New Game Research 35
5 Card Cash Ease of Understanding & Differentiation
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
63%C
59%
50%
61%c
66%C
77%ABCDe
65%C
57%c
45%
66%C
76%ABCd
80%ABCD
June 15, 2012
• Overall, approximately two thirds of the players surveyed perceived 5 Card Cash to be easy to understand and perceived the game to be new and different.
• Jackpot Hounds and C-Store Dreamers were most favorable toward the game.• While YES Men and Traditional, Older, Small Splurgers tended to be less favorable toward the game overall,
50% or more perceived the game to be easy to understand, though only 45% of the Traditional, Older, Small Splurgers perceived the game to be new and different.
Q6/Q7. Using the scale provided, how strongly do you disagree or agree with the following?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
5 Card Cash Ease of Understanding & Differentiation – Top-2 Box Summary (Agree)Base = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 36
5 Card Cash Perceptions
June 15, 2012
• Overall, 5 Card Cash generated strong, positive perceptions.• Only one third agreed however that this game provides good value for my money, this game has good
odds, or that they would play this game regularly – these scores were pulled down by lower scores among the Traditional, Older, Small Splurgers and Female Fun Squad segments.
TotalYoung,
Entitled, Spontaneous
Men
Traditional, Older, Small
SplurgersFemale Fun
SquadC-Store
DreamersJackpot Hounds
n= 1003 67 245 242 229 220[A] [B] [C] [D] [E] [F]
This game appears fun to play 62% C 57% C 34% 62% C 77% ABCD 80% ABCDIn addition to the top prize, I like the other prizes available 65% C 67% C 42% 64% C 78% AbCD 77% ACDI like the top prize 71% C 69% C 49% 69% C 82% AbCD 86% ABCDThere are lots of ways to win this game 61% C 67% C 39% 64% C 71% AC 72% ACdI like the name of this game 54% Cd 54% C 35% 46% C 68% AbCD 65% ACDThis game provides good value for my money 36% CD 56% ACD 11% 25% C 47% ACD 50% ACDI think this game has good odds 36% C 47% aCd 14% 32% C 46% ACD 50% ACDI think I would play this game regularly 31% CD 52% ACD 4% 23% C 44% ACD 47% ACDI like that this game is 2 games in 1 70% C 65% C 46% 67% C 85% ABCD 85% ABCDI like having the nightly drawing 55% C 59% C 33% 53% C 70% AbCD 66% ACDI like that I can win with as little as two “Jacks” 69% C 71% C 46% 68% C 83% AbCD 82% AbCDI like the card theme 66% C 66% C 44% 67% C 77% AbCd 78% AbCDI like knowing if I have won “instantly” 80% C 76% c 64% 82% C 90% AbCD 88% AbCdI like that I don’t have to pick any numbers to play this game 53% C 51% c 36% 59% C 57% C 68% ABCde
Q8 Based on this description, please tell us the extent to which you disagree or agree with each of the following statements.
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
5 Card Cash Perceptions – Top-2 Box SummaryBase = All Respondents
Colorado Lottery New Game Research 37
5 Card Cash Average Estimated Annual Purchases
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds 0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
39.3CD
76.4ACDE
11.5
22.7C
40.2CD
53.3ACDE
11%
21%
3%6%
11%15%
June 15, 2012
• Overall, respondents who would play 5 Card Cash indicate they would buy it approximately 39 times per year or 3 times per month.
• YES Men (76 times per year/6 times per month) and Jackpot Hounds (51 times per year/4 times per month) believe they would play the game most often while C-Store Dreamers, members of the Female Fun Squad, and Traditional, Older, Small Splurgers anticipate playing less often.
Q3. Based on this description, if this game were available, how often do you think you would you buy it?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
5 Card Cash Average (Mean) Estimated Annual PurchasesBase = Would Purchase 5 Card Cash
Total (n=801), Young, Entitled, Spontaneous Men (n=53), Traditional, Older, Small Splurgers (n=136),Female Fun Squad (n=210), C-Store Dreamers (n=205), Jackpot Hounds (n=208)
Colorado Lottery New Game Research 38
5 Card Cash Average Estimated Plays per Purchase
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
2.8CD
3.2aCD
2.3 2.3
3.1aCDf
2.8cD
June 15, 2012
Those who would purchase 5 Card Cash would probably purchase 2-3 tickets at a time.
5 Card Cash Average (Mean) Estimated Plays per PurchaseBase = Would Purchase Game
Total (n=801), Young, Entitled, Spontaneous Men (n=56), Traditional, Older, Small Splurgers (n=136),Female Fun Squad (n=210), C-Store Dreamers (n=205), Jackpot Hounds (n=208)
Q4. You indicated you would buy this game [INSERT Q3 RESPONSE]. If this game was available, how many plays do you think you might purchase at one time?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 39
5 Card Cash Average Satisfactory Win Amount
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
$10 $10 $10 $10
$5
$10
June 15, 2012
• A win of $10 would be viewed as satisfactory by 50% of the 5 Card Cash players• C-Store Dreamers have a lower satisfactory win amount of $5.
5 Card Cash Average (Median) Satisfactory Win AmountBase = Would Buy Game
Total (n=810), Young, Entitled, Spontaneous Men (n=54), Traditional, Older, Small Splurgers (n=138),Female Fun Squad (n=203), C-Store Dreamers (n=209), Jackpot Hounds (n=206)
Q9. As you know, not all lottery purchases result in someone winning a top prize. With this in mind and assuming you spent ___to play this game, what amount of money would you need to win from this game to be satisfied enough to play again?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 40
5 Card Cash Average Loss Tolerance
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
5.4bC
4.3
3.4
5.9BC
6.0aBC
6.3ABC
4.0
3.0 3.0
4.0
5.0 5.0
June 15, 2012
• Most indicate they would play 4 or 5 times without a win before giving up on 5 Card Cash.• The Female Fun Squad, C-Store Dreamers, and Jackpot Hounds segments have the highest loss tolerance.
5 Card Cash Average Loss ToleranceBase = Would Buy Game
Total (n=806), Young, Entitled, Spontaneous Men (n=54), Traditional, Older, Small Splurgers (n=138),Female Fun Squad (n=202), C-Store Dreamers (n=207), Jackpot Hounds (n=205)
Q10. Earlier, you mentioned that you might purchase ___plays when buying this game. Approximately how many times do you think you would be willing to play this game without having a satisfactory instant win?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 41
Like that I don't have to pick any numbers
Like knowing if i've won instantly
Like the card theme
I can win with 2 JacksLike the nightly draw
This game is 2 games in 1
I'd play regularly
Has good odds
Good value for my money
I like the name
Lots of ways to win
I like the top prize
I like the other prizes available
Game appears fun to play
Leveraging 5 Card Cash for Maximum Trial• Strengths include the 2 games in 1 aspect as well as the game appears fun to play, promoting these will
have positive effect as they are moderately motivating.• Improving perceptions of I think I would play this game regularly and this game provides good value for my
money are opportunities as they are considered motivating but prospective players are not yet sold on them.
June 15, 2012
Perceived Delivery
Deriv
ed M
otiva
tion
Opportunities Hot Buttons
Irrelevant Cost of Entry
Colorado Lottery New Game Research 42
Leveraging 5 Card Cash
Total Young, Entitled, Spontaneous Men
Traditional, Older, Small Splurgers Female Fun Squad C-Store Dreamers Jackpot Hounds
Game appears fun to play Hot Button Irrelevant Hot Button Hot Button Hot Button Hot Button
I like the other prizes available Cost of Entry Irrelevant Cost of Entry Hot Button Cost of Entry Cost of Entry
I like the top prize Cost of Entry Hot Button Cost of Entry Cost of Entry Cost of Entry Cost of Entry
Lots of ways to win Irrelevant Cost of Entry Cost of Entry Hot Button Irrelevant Irrelevant
I like the name Irrelevant Irrelevant Cost of Entry Irrelevant Irrelevant Opportunity
Good value for my money Opportunity Irrelevant Irrelevant Irrelevant Opportunity Irrelevant
Has good odds Irrelevant Irrelevant Irrelevant Irrelevant Irrelevant Irrelevant
I'd play regularly Opportunity Opportunity Opportunity Opportunity Opportunity Opportunity
This game is 2 games in 1 Hot Button Hot Button Hot Button Hot Button Cost of Entry Cost of Entry
Like the nightly draw Irrelevant Opportunity Cost of Entry Hot Button Irrelevant Opportunity
I can win with 2 Jacks Cost of Entry Cost of Entry Hot Button Cost of Entry Hot Button Cost of Entry
Like the card theme Cost of Entry Cost of Entry Cost of Entry Hot Button Hot Button Hot Button
Like knowing if i've won instantly Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry
Like that I don't have to pick any numbers Irrelevant Opportunity Cost of Entry Cost of Entry Irrelevant Irrelevant
June 15, 2012
Colorado Lottery New Game Research 43
5 Card Cash Favorite Alternate Names
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
29%42%
35%28% 29%
23%
34%
27%
25% 40% 38%
35%
37%31%
41%32% 33%
42%
June 15, 2012
• 5 Card Cash tested best overall, however, this was possibly biased by the fact that it was the name the game was evaluated under.
• Overall, respondents were open to the other names: – 5 Card Draw had fairly high preference overall and was favored by the Female Fun Squad and the C-
Store Dreamers.– Poker Pick was the least favored, though it was preferred by the YES Men.
Q15. The Colorado Lottery is considering other names for this game; from this list, please rank these 3 choices in priority of names.
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
5 Card Cash Favorite Alternate NamesBase = Would Buy Game
Total (n=810), Young, Entitled, Spontaneous Men (n=54), Traditional, Older, Small Splurgers (n=138),Female Fun Squad (n=203), C-Store Dreamers (n=209), Jackpot Hounds (n=206)
Game Reviews
5 Card CashLucky in LifeColorado 3Lotto Plus
June 15, 2012Colorado Lottery New Game Research 44
Lucky in LifeLucky in Life gives you the chance to win $1,000 per day!
Playing Lucky in Life is easy: just pick five (5) numbers from 1 to 40 and a “Lucky Ball” number from 1 to 21 on the play slip, or choose Quick Pick.
You win if you match the Lucky Ball or at least two (2) numbers drawn by the lottery. If you match all 5 numbers and the Lucky Ball, you win $1,000 per day.
The $1,000 per day is for 30 years. Lucky in Life is played in Colorado, Oklahoma, and Arizona. Drawings are held twice a week.
Price per play is $2.
Win $1,000 every day!
Sample ticket
Numbers Matched
Lucky Ball Match Prize Odds
5 1 $1,000 per day 13,818,168 5 0 $25,000 690,908 4 1 $2,000 78,961 4 0 $100 3,948 3 1 $50 2,322 3 0 $10 116 2 1 $15 211 2 0 $2 11 1 1 $5 53 0 1 $4 43
Overall Odds of Winning a Prize: 7
Choose 5 numbers and 1 Lucky Ball number or use Quick
Pick
Check your numbers in the drawing to see
if you won.
Colorado Lottery New Game Research 46
Lucky in Life Top of Mind Purchase Intent
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
20%EF 16% f
42%ABDEF
19% EF11% 7%
14% bF
7%
20%aBeF
19% aBF
14% bf
7%
20%
20%
20%
25%
21%
19%
34%C
28%c
17%
33%C
37%C 53%
ABCDE
12% CD29%
ACDef
1% 4% c
18% aCD 15% CD
June 15, 2012
• Overall, 46% of the players surveyed indicated they would be somewhat or very likely to purchase Lucky in Life. YES Men are especially likely to purchase Lucky in Life.
• Jackpot Hounds are the most likely to purchase the game (68%) followed by YES Men (57%), C-Store Dreamers (55%), and members of the Female Fun Squad (37%).
• Traditional, Older, Small Splurgers found the game less attractive, only 18% indicated they were somewhat or very likely to purchase the game.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Lucky in Life Top of Mind Purchase IntentBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 47
Lucky in Life Stated and Estimated Purchase Intent
June 15, 2012
• Lucky in Life was most appealing to YES Men, C-Store Dreamers and Jackpot Hounds; at 100% awareness Crestwood expects about a quarter would try the game.
• Traditional, Older, Small Splurgers show very little interest in purchasing the game.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
34%
28%17%
33%
37%
53%12% 29%
1%
4%
18%
15%
46%
57%
19%
37%
55%
68%
17%
28%
5%11%
23% 24%
Lucky in Life Stated and Estimated Purchase IntentBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 48
Lucky in Life Top of Mind Purchase Intent by Age & Ethnicity
June 15, 2012
Lucky in Life is more appealing to younger players and Hispanic or Latino players.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Lucky in Life Top of Mind Purchase Intent by Age & EthnicityBase = All Respondents
Total (n=1,003), Age 18-34 (n=141), Age 35+ (n=862), Hispanic or Latino (n=86), Not Hispanic or Latino (n=917)
[A] Total [O] Age 18-34 [P] Age 35+ [Q] Hispanic / Latino [R] Not Hispanic / Latino
0.203281293996761 0.158398681349322%
o 0.211155533246891 0.202064721537936
14% Q0.149728055188985
0.129608195865810.056663501405101
715% Q
0.2037092820428950.168243610210885
0.220335129088804
0.158200988879387
0.210740327754384
0.339186897448143 40%p
0.312735319768703
0.388568153409826
0.331557477757321
0.117792753566328 0.128017181164152 0.11299967449599219% r
0.10734558590698
Colorado Lottery New Game Research 49
Lucky in Life Ease of Understanding & Differentiation
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
65%C
65%c
52%
64%C
72%aCd
72%aCd
48%C
51%C
31%
47%C
56%aCd
57%ACd
June 15, 2012
• Overall, approximately two thirds found Lucky in Life easy to understand, however, 48% agreed that it was new and different.
• The game appeared to resonate more strongly with the Jackpot Hounds and C-Store Dreamers than other segments who were less likely to perceive the game as differentiated.
Q6/Q7. Using the scale provided, how strongly do you disagree or agree with the following?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Lucky in Life Ease of Understanding & Differentiation – Top-2 Box Summary (Agree)Base = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 50
Lucky in Life Perceptions
June 15, 2012
• Overall, players like the top prize, like choosing their own numbers or using Quick Pick, and like that they can win by just matching the Lucky Ball.
• Lucky in Life was not perceived positively for its odds, value, or as a game to play regularly.
TotalYoung,
Entitled, Spontaneous
Men
Traditional, Older, Small
Splurgers
Female Fun
SquadC-Store
DreamersJackpot Hounds
n= 1003 67 245 242 229 220[A] [B] [C] [D] [E] [F]
This game appears fun to play 52% CD 62% aCD 24% 37% C 64% ACD 74% AbCDeIn addition to the top prize, I like the other prizes available 57% C 56% C 35% 58% C 70% AbCD 69% AbCDI like the top prize 73% C 68% 58% 76% C 80% abC 82% AbCThere are lots of ways to win this game 50% C 57% C 37% 46% c 56% Cd 59% aCDI like the name of this game 55% C 50% C 30% 51% C 68% ABCD 72% ABCDThis game provides good value for my money 33% CD 48% ACD 11% 24% C 44% ACD 46% ACDI think this game has good odds 37% CD 58% ACD 16% 21% 49% ACD 47% ACDI think I would play this game regularly 30% CD 46% ACD 8% 18% C 40% ACD 44% ACDI like that this game is only played in Colorado, Oklahoma, and Arizona 48% C 54% C 26% 50% C 59% ACd 60% ACdI like having 2 drawings per week 54% Cd 69% ACD 29% 46% C 68% ACD 67% ACDI would rather be paid over time 40% f 41% 36% 43% cf 51% ACdF 33%I like that I can choose my own numbers or use Quick Pick 72% C 70% C 48% 73% C 85% AbCD 85% AbCDI like that I can win by just matching the Lucky Ball 68% C 68% C 45% 73% C 79% AbCd 79% AbCd
Q8 Based on this description, please tell us the extent to which you disagree or agree with each of the following statements.
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Lucky in Life – Top-2 Box SummaryBase = All Respondents
Colorado Lottery New Game Research 51
Lucky in Life Average Estimated Annual Purchases
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds 0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
19.4
30.2
7.2
12.0
22.824.5
19%
29%
7%11%
22% 24%
June 15, 2012
• Overall, respondents who would play Lucky in Life indicate they would buy it approximately 19 times per year or once or twice per month.
• YES Men (30 times per year/2 to 3 times per month) and Jackpot Hounds (25 times per year/twice per month) believe they would play the game most often while C-Store Dreamers, members of the Female Fun Squad, and Traditional, Older, Small Splurgers anticipate playing less often.
Q3. Based on this description, if this game were available, how often do you think you would you buy it?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Lucky in Life Average (Mean) Estimated Annual PurchasesBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 52
Lucky in Life Estimated Plays per Purchase
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
2.6Cd
3.3ACDF
2.1
2.4c
3.0aCDf
2.6C
June 15, 2012
• On average, those who would play indicate they would purchase 2 to 3 plays per occasion.• YES Men and C-Store Dreamers would purchase more plays, on average, than the other segments.
Lucky in Life Average (Mean) Estimated Plays per PurchaseBase = Would Purchase Game
Total (n=795), Young, Entitled, Spontaneous Men (n=56), Traditional, Older, Small Splurgers (n=146),Female Fun Squad (n=187), C-Store Dreamers (n=198), Jackpot Hounds (n=207)
Q4. You indicated you would buy this game [INSERT Q3 RESPONSE]. If this game was available, how many plays do you think you might purchase at one time?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 53
Lucky in Life Average Satisfactory Win Amount
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
$10
$6
$10 $10 $10
$6
June 15, 2012
Overall, a satisfactory win for Lucky in Life $10 would be satisfying for half of those Lucky in Life players surveyed.
Lucky in Life Average (Median) Satisfactory Win AmountBase = Would Buy Game
Total (n=796), Young, Entitled, Spontaneous Men (n=53), Traditional, Older, Small Splurgers (n=145),Female Fun Squad (n=189), C-Store Dreamers (n=204), Jackpot Hounds (n=205)
Q9. As you know, not all lottery purchases result in someone winning a top prize. With this in mind and assuming you spent ___to play this game, what amount of money would you need to win from this game to be satisfied enough to play again?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 54
Lucky in Life Average Loss Tolerance
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
5.4C
4.5
3.8
6.2aBC
5.5bC
6.5ABCe
4.0
3.0 3.0
5.0
4.0
5.0
June 15, 2012
• Loss tolerance for Lucky in Life is fairly high (4-5 draws).• The Female Fun Squad, C-Store Dreamers, and Jackpot Hounds segments would be willing to play through
5-7 draws without a satisfactory win.
Lucky in Life Average Loss ToleranceBase = Would Buy Game
Total (n=790), Young, Entitled, Spontaneous Men (n=53), Traditional, Older, Small Splurgers (n=144),Female Fun Squad (n=187), C-Store Dreamers (n=202), Jackpot Hounds (n=204)
Q11. Earlier, you mentioned that you might purchase ___plays when buying this game. How many drawings would you be willing to go through before having a satisfactory win?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 55
Leverage Grid Analysis
The attributes reviewed were statistically linked to purchase intent to arrive at a derived motivation score. The motivational impact was plotted in relation to the perceived delivery of each of the attributes to highlight the most leveragable attributes to generate trial. A summary of the resulting plots, seen on the following page may be interpreted as follows:
June 15, 2012
Opportunities Hot Buttons
Irrelevant Cost of EntryOr Baseline
Hot Buttons: Key Drivers. These are essential attributes that are perceived highly. Points of leverage – Promote.
Opportunities: Highly motivating but not universally perceived as well delivered. Potential paradigm shifters – Invest.
Cost of Entry: Although considered well delivered, will not create incremental business. Represent norms or standards – Maintain.
Irrelevant: Not seen as important. Insufficient motivation to build value; Efforts may have no effect - Ignore.
Perceived Delivery
Deriv
ed M
otiva
tion
Colorado Lottery New Game Research 56
Can win by just matching the Lucky Ball
Like that I can choose numbers or Quickpick
Would rather be paid over time
Like having 2 draws per week
I like that it's played only in CO, AZ and OK
I'd play regularly
Has good odds
Good value for my money I like the name
Lots of ways to win
I like the top prizeI like the other prizes available
Game appears fun to play
Leveraging Lucky in Life for Maximum Trial• Strengths include appears fun to play, can win by just matching the Lucky Ball, I can choose my own
numbers or use Quick Pick, and I like the name.• Improving perceptions of I think I would play this game regularly and this game provides good value for my
money are opportunities as they are considered motivating but prospective players are not yet sold on them.
June 15, 2012
Perceived Delivery
Deriv
ed M
otiva
tion
Opportunities Hot Buttons
Irrelevant Cost of Entry
Colorado Lottery New Game Research 57
Leveraging Lucky in Life
Total Young, Entitled, Spontaneous Men
Traditional, Older, Small Splurgers Female Fun Squad C-Store Dreamers Jackpot Hounds
Game appears fun to play Hot Button Cost of Entry Opportunity Opportunity Hot Button Hot Button
I like the other prizes available Cost of Entry Cost of Entry Hot Button Cost of Entry Cost of Entry Cost of Entry
I like the top prize Cost of Entry Hot Button Hot Button Cost of Entry Cost of Entry Cost of Entry
Lots of ways to win Irrelevant Opportunity Hot Button Cost of Entry Irrelevant Irrelevant
I like the name Hot Button Cost of Entry Cost of Entry Hot Button Cost of Entry Hot Button
Good value for my money Irrelevant Irrelevant Irrelevant Opportunity Irrelevant Opportunity
Has good odds Irrelevant Opportunity Irrelevant Irrelevant Irrelevant Irrelevant
I'd play regularly Opportunity Opportunity Opportunity Opportunity Opportunity Opportunity
I like that it's played only in CO, AZ and OK Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry
Like having 2 draws per week Cost of Entry Hot Button Cost of Entry Cost of Entry Cost of Entry Cost of Entry
Would rather be paid over time Irrelevant Irrelevant Irrelevant Irrelevant Irrelevant Irrelevant
Like that I can choose numbers or Quickpick Hot Button Hot Button Hot Button Cost of Entry Cost of Entry Hot Button
Can win by just matching the Lucky Ball Hot Button Hot Button Hot Button Hot Button Hot Button Hot Button
June 15, 2012
Colorado Lottery New Game Research 58
Lucky in Life Favorite Alternate Names
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
39%48%
e37% 40% 36%
42%
15%
19%
15% 12%13%
15%
46%b
33%48%
b48%
b 51%Bf
43%
June 15, 2012
• Overall, respondents are open to both names Lucky in Life and Daily Grand.• It should be noted that Lucky in Life results could be biased by the fact that it was the name the game was
evaluated under.• Lucky Life was the least favorite name.
Q16. The Colorado Lottery is considering other names for this game; from this list, please rank these 3 choices in priority of names.
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Lucky in Life Favorite Alternate NamesBase = All Respondents
Total (n=796), Young, Entitled, Spontaneous Men (n=53), Traditional, Older, Small Splurgers (n=145),Female Fun Squad (n=189), C-Store Dreamers (n=204), Jackpot Hounds (n=205)
Colorado Lottery New Game Research 59
Lucky in Life Prize Alternate Structuring
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
5% d 2%8% abDe 3% 4% 5%
9% 9%11%
8% 8% 8%
50%B
29%
52%B 65%
ABceF 55%Bf 45%
b
21%d
22%
21% 16%
20%24%
d
15% CD
38%ACDEF
8% 8% 14% c 18% CD
June 15, 2012
• Most (86%) of the players surveyed were neutral or welcoming to the proposed restructuring of the payouts to one lump sum or to annual payments .
• More than one third (36%) of potential game buyers would be more likely to play if the game’s payout was restructured (50% were neutral).
• Only 15% of potential game buyers would be less likely to play if the payout was not daily.
Q17. Imagine you won the grand prize for the new game Lucky in Life of $1,000 per day for 30 years. If the Lottery were only able to deliver your winnings in one lump sum or 30 annual payments—instead of paying you every day, would you be…?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Lucky in Life Prize Alternate StructuringBase = Would Buy Game
Total (n=796), Young, Entitled, Spontaneous Men (n=53), Traditional, Older, Small Splurgers (n=145),Female Fun Squad (n=189), C-Store Dreamers (n=204), Jackpot Hounds (n=205)
Colorado Lottery New Game Research 60
Lucky in Life Preferred New Payment Schedule
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
45%
59%acdF
42% 44%49%
f 39%
55%b
41%58%
b56%
b51% 61%
Be
June 15, 2012
Overall, players indicate they would prefer a lump sum payout over annual payments.
Q18. Which payment schedule would you prefer for Lucky in Life? Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Lucky in Life Preferred New Payment ScheduleBase = Would Buy Game if the Payment were Restructured
Total (n=723), Young, Entitled, Spontaneous Men (n=48), Traditional, Older, Small Splurgers (n=125),Female Fun Squad (n=175), C-Store Dreamers (n=187), Jackpot Hounds (n=188)
Game Reviews
5 Card CashLucky in LifeColorado 3Lotto Plus
June 15, 2012Colorado Lottery New Game Research 61
Colorado 3
Colorado 3 gives you lots of ways to win with just three (3) numbers.
Colorado 3 lets you pick your numbers and the different ways they come up, and you can win up to $500! Set your own strategy and you can win with more than one wager type.
To play Colorado 3:• Pick your three (3) numbers on the play slip, or choose Quick Pick.• Select the bet type you’d like to play:
o Straight – match your numbers in exact ordero Box – match your numbers in any ordero Straight & Box – both bet types in one wager
• Choose the draw you wish to play: midday, evening, or both.
You win if your numbers match the Lottery numbers according to your bet type.
Colorado 3 costs as little as $0.50 per bet; all wagers must be in increments of $1. Drawings are twice per day.
Sample ticket
Pick 3 numbers or select Quick Pick
Choose your bet type
Select the draw time
The fun new way to play with only 3 numbers and lots of way to win!
Colorado 3 Prizes
Bet Type Bet Amount Match
ExamplePrize Odds Your
Numbers Lottery Draws
Straight $0.50 Your numbers in exact order 125 125 $250 1,000Box $0.50 Your numbers in any order 125 125, 152, 215, 251, 512, 521 $50 167
Straight & Box $1.00
One Straight bet (exact order)125
125 $250 1,000One Box bet (any order) 125, 152, 215, 251, 512, 521 $50 167
Colorado Lottery New Game Research 63
Pick 3 Awareness & Penetration
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
76%b
60%
84%ABF
82%aBF 78%
Bf 70%
8% e
13%
5% 5%4%
12% aCDE
17% c28%
aCdef
11% 13% 17% c 18% c
June 15, 2012
• Most players had neither heard of nor played the game Pick 3 from another Lottery.• YES Men and Jackpot Hounds were most likely to be aware of Pick 3, though only 13% of the YES Men andf
12% of the Jackpot Hounds had ever played.
Q20. Have you ever heard of or played the game Pick 3 from another Lottery? Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Pick 3 Awareness & PenetrationBase = Would Buy Game
Total (n=730), Young, Entitled, Spontaneous Men (n=52), Traditional, Older, Small Splurgers (n=116),Female Fun Squad (n=183), C-Store Dreamers (n=186), Jackpot Hounds (n=193)
Colorado Lottery New Game Research 64
Colorado 3 Top of Mind Purchase Intent
June 15, 2012
• Approximately one-third of the players surveyed indicated they would be somewhat or very likely to purchase Colorado 3.
• Yes Men are the most likely to purchase the game (51%); C-Store Dreamers (45%), Jackpot Hounds (47%), and members of the Female Fun Squad (30%) also showed some interest.
• Traditional, Older, Small Splurgers found the game less attractive, only 9% indicated they were somewhat or very likely to purchase the game.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado 3 Top of Mind Purchase IntentBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
28%bdeF 18%
53%ABDEF
23%F
21%F
10%
17% B
4%
17% B
26%ABCE
13% b21%Be
22%
26%
20%
22%
22% 21%
24%C
21%C
8%
26%C
33%abCd 35%
AbCd
10% CD
30%ACDEF
1% 4% c12% CD 12% CD
Colorado Lottery New Game Research 65
Colorado 3 Stated and Estimated Purchase Intent
June 15, 2012
• Colorado 3 was most appealing to YES Men, C-Store Dreamers and Jackpot Hounds; at 100% awareness Crestwood expects a quarter or less would try the game.
• Traditional, Older, Small Splurgers show very little interest in purchasing the game.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
24% 21%
8%
26%
33% 35%10%
30%
1%
4%
12% 12%34%
52%
10%
30%
45% 47%
13%
28%
3%9%
17% 18%
Colorado 3 Stated and Estimated Purchase IntentBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 66
Colorado 3 Top of Mind Purchase Intent by Age & Ethnicity
June 15, 2012
Colorado 3 is more appealing to younger players and Hispanic or Latino players.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado 3 Top of Mind Purchase Intent by Age & EthnicityBase = All Respondents
Total (n=1,003), Age 18-34 (n=141), Age 35+ (n=862), Hispanic or Latino (n=86), Not Hispanic or Latino (n=917)
[A] Total [O] Age 18-34 [P] Age 35+ [Q] Hispanic / Latino [R] Not Hispanic / Latino
0.276579125262113 0.27987538238083 0.275033882669802 0.273667795227022 0.27702892667489
0.168205126656953 0.17104591225802 0.166873403205687 0.151271929881418 0.17082131092347
0.215211435857503 0.203846081410189 0.220539366639658 0.22550049478538 0.213621772993413
0.24410637573136 0.222730047266464 0.254127321313440.180928834927907
0.25386732580111
0.0958979364920746 0.1225025766845
0.0834260261714167 17%
ar
0.0846606636071205
Colorado Lottery New Game Research 67
Colorado 3 Top of Mind Purchase Intent by Pick 3 Awareness
June 15, 2012
• Those who have heard of or played pick 3 from another Lottery we more interested in playing Colorado 3.• 24% of those aware of Pick 3 consider themselves very likely to purchase Colorado 3, whereas 10% of
those unaware would purchase the game.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games? Q20. Have you ever heard of or played the game Pick 3 from another Lottery?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado 3 Top of Mind Purchase Intent by Pick 3 AwarenessBase = All Respondents
Total (n=1,003), Aware of or Played Pick 3 (n=173), Unaware of Pick 3 (n=534)
Aware of or Played Pick 3 Unaware of Pick 32% 7%
18%18%
23%
30%
33%
35%
24%
10%
Colorado Lottery New Game Research 68
Colorado 3 Ease of Understanding & Differentiation
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
41%C
63%ACDEf
28%
41%C
41%C
48%aC
60%C
60%C
40%
60%C
72%AbCD 69%
ACd
June 15, 2012
• Colorado 3 was perceived easy to understand by less than half of the respondents surveyed, but it was considered differentiated by most players.
• Traditional, Older, Small Splurgers rated the game lower for both being easy to understand and for being differentiated than any other segment.
Q6/Q7. Using the scale provided, how strongly do you disagree or agree with the following?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado 3 Ease of Understanding & Differentiation – Top-2 Box Summary (Agree)Base = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 69
Colorado 3 Perceptions
June 15, 2012
• Overall, perceptions of Colorado 3 were not very positive.• Highest ratings were for I like that I can choose my own numbers to play, and I like that wagers start at just
$0.50 per play.• Only 21% of respondents indicated they would play the game regularly.
TotalYoung,
Entitled, Spontaneous
Men
Traditional, Older, Small
SplurgersFemale Fun
SquadC-Store
DreamersJackpot Hounds
n= 1003 67 245 242 229 220[A] [B] [C] [D] [E] [F]
This game appears fun to play 42% C 49% C 16% 43% C 53% ACd 59% ACDIn addition to the top prize, I like the other prizes available 44% C 56% aCD 25% 40% C 56% ACD 51% aCDI like the top prize 47% C 50% C 28% 48% C 55% aC 60% ACDThere are lots of ways to win this game 49% C 59% C 35% 50% C 59% ACdf 51% CI like the name of this game 39% Cd 52% aCD 21% 32% C 48% ACD 47% aCDThis game provides good value for my money 31% Cd 43% aCD 11% 25% C 41% ACD 43% ACDI think this game has good odds 31% C 44% aCD 12% 28% C 40% ACD 41% ACDI think I would play this game regularly 21% CD 43% ACDEf 5% 12% C 26% CD 32% ACDI like that I can choose my own numbers to play 62% C 59% C 43% 61% C 77% ABCD 71% AbCDI like that I can choose how my numbers come up 57% C 56% C 36% 56% C 74% ABCDf 65% aCdI like that I can play twice a day 31% Cd 48% ACD 11% 24% C 42% ACD 41% ACDI like that I only have to pick 3 numbers to play 59% C 63% C 37% 58% C 74% AbCD 70% ACDI like that wagers start at just $0.50 per play 62% C 59% c 45% 64% C 73% AbCd 72% AbCd
Q8 Based on this description, please tell us the extent to which you disagree or agree with each of the following statements.
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado 3 Perceptions – Top-2 Box Summary (Agree)Base = All Respondents
Colorado Lottery New Game Research 70
Colorado 3 Average Estimated Annual Purchases
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds 0.0
20.0
40.0
60.0
80.0
100.0
120.0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
37.5Cd
97.7ACDEF
14.4
20.0c
29.0C
47.1ACDE
5%
13%
2% 3% 4% 6%
June 15, 2012
• Overall, respondents who would play Colorado 3 indicate they would buy it approximately 37 times per year or 3 times per month.
• YES Men (98 times per year/8 times per month) indicate they would play weekly while Jackpot Hounds, C-Store Dreamers, members of the Female Fun Squad, and Traditional, Older, Small Splurgers anticipate playing less often.
Q3. Based on this description, if this game were available, how often do you think you would you buy it?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado 3 Average (Mean) Estimated Annual PurchasesBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 71
Colorado 3 Average Estimated Plays per Purchase
June 15, 2012
On average, those who would purchase Colorado 3 indicate they would probably purchase 2-3 tickets at a time.
Colorado 3 Average Estimated Plays per PurchaseBase = Would Purchase Game
Total (n=727), Young, Entitled, Spontaneous Men (n=51), Traditional, Older, Small Splurgers (n=116),Female Fun Squad (n=183), C-Store Dreamers (n=185), Jackpot Hounds (n=192)
Q4. You indicated you would buy this game [INSERT Q3 RESPONSE]. If this game was available, how many plays do you think you might purchase at one time?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
2.6d 2.5
2.3 2.3
3.0ACDF
2.4
Colorado Lottery New Game Research 72
Colorado 3 Average Estimated Spending per Purchase
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
$3 D
$4 cD
$3
$2
$3 cD $3
D
June 15, 2012
• Colorado 3 players anticipate spending $2 to $3 per play.• YES Men anticipate spending more per play versus the other players.
Colorado 3 Average Estimated Spending per PurchaseBase = Would Purchase Game
Total (n=727), Young, Entitled, Spontaneous Men (n=51), Traditional, Older, Small Splurgers (n=116),Female Fun Squad (n=183), C-Store Dreamers (n=185), Jackpot Hounds (n=192)
Q5. Colorado 3 wagers begin at $0.50 for a ‘Straight’ or ‘Box’ bet and are $1.00 for a ‘Straight Box’ bet. All wagers must be in increments of $1. With this in mind, how much do you think you would spend on Colorado 3 per play?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 73
Colorado 3 Average Satisfactory Win Amount
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
$5
$10 $10
$6
$5 $5
June 15, 2012
• On average, a satisfactory win for Colorado 3 is $5.• Young, Entitled, Spontaneous Men and Traditional, Older, Small Splurgers have a much higher satisfactory
win requirement of $10.
Colorado 3 Average (Median) Satisfactory Win AmountBase = Would Buy Game
Total (n=730), Young, Entitled, Spontaneous Men (n=52), Traditional, Older, Small Splurgers (n=116),Female Fun Squad (n=183), C-Store Dreamers (n=186), Jackpot Hounds (n=193)
Q9. As you know, not all lottery purchases result in someone winning a top prize. With this in mind and assuming you spent ___to play this game, what amount of money would you need to win from this game to be satisfied enough to play again?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 74
Colorado 3 Average Loss Tolerance
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
5C
4
4
6bC
6bC
6abC
4
3 3
4
5
4
June 15, 2012
• On average, respondents would be willing to play through 4 or 5 Colorado 3 draws without having a satisfactory win.
• The Female Fun Squad, C-Store Dreamers, and Jackpot Hounds segments have higher loss tolerance for Colorado 3, playing up to 6 draws.
Colorado 3 Average Loss ToleranceBase = Would Buy Game
Total (n=727), Young, Entitled, Spontaneous Men (n=52), Traditional, Older, Small Splurgers (n=116),Female Fun Squad (n=183), C-Store Dreamers (n=185), Jackpot Hounds (n=191)
Q11. Earlier, you mentioned that you might purchase ___plays when buying this game. How many drawings would you be willing to go through before having a satisfactory win?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 75
Wagers start at just $0.50 per play
I only have to pick 3 numbers
I can play twice a day
I can choose how my numbers come up
Like that I can choose my own numbers
I'd play regularly
Has good odds
Good value for my money
I like the name
Lots of ways to winI like the top prize
I like the other prizes available
Game appears fun to play
Leveraging Colorado 3 for Maximum Trial• Strengths include the game appears fun to play and I like that I can choose how my numbers come up,
promoting these will have positive effect as they are moderately motivating.• Improving perceptions of I think I would play this game regularly and this game provides good value for my
money are opportunities as they are considered motivating but prospective players are not yet sold on them.
June 15, 2012
Perceived Delivery
Deriv
ed M
otiva
tion
Opportunities Hot Buttons
Irrelevant Cost of Entry
Colorado Lottery New Game Research 76
Leveraging Colorado 3
Total Young, Entitled, Spontaneous Men
Traditional, Older, Small Splurgers Female Fun Squad C-Store Dreamers Jackpot Hounds
Game appears fun to play Hot Button Hot Button Opportunity Hot Button Opportunity Hot Button
I like the other prizes available Cost of Entry Hot Button Hot Button Cost of Entry Cost of Entry Irrelevant
I like the top prize Cost of Entry Irrelevant Cost of Entry Cost of Entry Hot Button Cost of Entry
Lots of ways to win Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry
I like the name Cost of Entry Irrelevant Hot Button Irrelevant Irrelevant Cost of Entry
Good value for my money Opportunity Irrelevant Opportunity Irrelevant Irrelevant Opportunity
Has good odds Irrelevant Irrelevant Opportunity Irrelevant Irrelevant Irrelevant
I'd play regularly Opportunity Opportunity Opportunity Opportunity Opportunity Opportunity
Like that I can choose my own numbers Cost of Entry Cost of Entry Cost of Entry Hot Button Cost of Entry Cost of Entry
I can choose how my numbers come up Hot Button Cost of Entry Cost of Entry Hot Button Hot Button Hot Button
I can play twice a day Irrelevant Irrelevant Opportunity Irrelevant Irrelevant Opportunity
I only have to pick 3 numbers Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry
Wagers start at just $0.50 per play Cost of Entry Hot Button Cost of Entry Cost of Entry Cost of Entry Cost of Entry
June 15, 2012
Colorado Lottery New Game Research 77
Colorado 3 Favorite Alternate Names
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
24%d 24%
27%d
17% 21%27%
d
26%33% 29%
37%AEF 22%
24%
50%42% 44% 46%
57%abcd
50%
June 15, 2012
Colorado 3 was the preferred name evaluated though some of this may be due to the bias of Colorado 3 being the name used during the concept evaluation.
Q19. The Colorado Lottery is considering other names for this game; from this list, please rank these 3 choices in priority of names.
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado 3 Favorite Alternate NamesBase = Would Buy Game
Total (n=730), Young, Entitled, Spontaneous Men (n=52), Traditional, Older, Small Splurgers (n=116),Female Fun Squad (n=183), C-Store Dreamers (n=186), Jackpot Hounds (n=193)
Game Reviews
5 Card CashLucky in LifeColorado 3Lotto Plus
June 15, 2012Colorado Lottery New Game Research 78
Lotto Plus
The new Lotto Plus wager on Colorado Lotto lets you multiply your Lotto winnings by 4 times!
You still play Lotto like normal, but with Lotto Plus, any winnings you might receive for Lotto will be multiplied by 4 (except the jackpot).
Adding Lotto Plus is easy:• Pick your six (6) Lotto numbers, or choose Quick Pick.• Select Lotto Plus on the play slip.
Adding Lotto Plus costs an additional $1 for a total of a $2 Lotto wager.
Increase your Lotto winnings with Lotto Plus!
Sample ticket
Play Lotto as you normally
would
Add Lotto Plus
Lotto Prizes
MatchesWithout
MultiplierWith Lotto
Plus Odds 6 Jackpot Jackpot 5,245,7865 $1,000 $4,000 24,2864 $50 $200 5553 $3 $12 37
Lotto Penetration
June 15, 2012Colorado Lottery New Game Research 80
• About 80% of respondents have played Lotto in the past.• 93% of Jackpot hounds have purchased Lotto Plus.
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
80%C
81%c
70%
85%aCe 78%
c
93%ABCDE
Lotto PenetrationBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
S6. When did you last play each of the following Colorado Lottery games? Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 81
Lotto Plus Top of Mind Purchase Intent
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
23%bEF
12%
48%ABDEF
23%bEF 14% F
6%
13%
8%
12%
16% b
15% b
12%
24%
27%
25%
28%e
21%
25%
30%C
32%C
15%
31%C
34%C 40%
ACd
11% CD21%aCD
1% 3%
17% aCD 16% aCD
June 15, 2012
• Less than half (41%) of the players surveyed indicated they would be somewhat or very likely to purchase the Lotto Plus.
• Jackpot Hounds are the most likely to purchase the game (56%) followed by YES Men (53%), C-Store Dreamers (51%), and members of the Female Fun Squad (34%).
• Traditional, Older, Small Splurgers found the game less attractive, only 16% indicated they were somewhat or very likely to purchase Lotto Plus.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Lotto Plus Top of Mind Purchase IntentBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 82
Lotto Plus Stated and Estimated Purchase Intent
June 15, 2012
• Lotto Plus was most appealing to YES Men, C-Store Dreamers and Jackpot Hounds; at 100% awareness Crestwood expects a little less than a quarter would try the game.
• Traditional, Older, Small Splurgers show very little interest in purchasing the game.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
30%
32%15%
31%
34% 40%
11%
21%
1%
3%
17%16%
40%
53%
15%
33%
51%56%
15%
24%
4%10%
21% 22%
Lotto Plus Stated and Estimated Purchase IntentBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 83
Lotto Plus Top of Mind Purchase Intent – Lotto Players vs. Non Lotto Players
Total Lotto Players Non Lotto Players
23%
7%
35%
13%
13%
13%24%
25%
24%
30%
37%
23%
11%17%
5%
June 15, 2012
• Overall, Lotto Plus is more appealing to current Lotto Players though Non Lotto Players also found the concept moderately attractive.
• 55% of Lotto Players and 28% of Non Lotto Players indicated they were somewhat or very likely to purchase Lotto Plus.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Lotto Plus Top of Mind Purchase Intent – Lotto Players vs. Non Lotto PlayersBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 84
Lotto Plus Top of Mind Purchase Intent by Age & Ethnicity
June 15, 2012
Lotto Plus is more appealing to Hispanic or Latino players.
Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Lotto Plus Top of Mind Purchase Intent by Age & EthnicityBase = All Respondents
Total (n=1,003), Age 18-34 (n=141), Age 35+ (n=862), Hispanic or Latino (n=86), Not Hispanic or Latino (n=917)
[A] Total [O] Age 18-34 [P] Age 35+ [Q] Hispanic / Latino [R] Not Hispanic / Latino
23%o 0.171160914715836
25%O 0.161366771953372
24%q
0.1288167807493550.154425103556801
0.116811931098809
0.1410185267260770.126931607130251
0.243565769536969 0.2575466469914330.237011715486433
0.184858434969103
0.25263607132709
0.295151637172124 0.28883774898778 0.298111506076204
0.291553966711366
0.295707478398108
0.106963854005118 0.1280295857481520.097088512138514
2 22%AR
0.0893139779620183
Colorado Lottery New Game Research 85
Lotto Plus Ease of Understanding & Differentiation
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
68%C
63%
54%
71%C
75%abC
78%AbCd
43%CD
59%ACD
24%
33%c
52%aCD
53%ACD
June 15, 2012
• Overall, Lotto Plus was perceived as easy to understand but not very differentiated from other games.• Only 24% of the Traditional, Older, Small Splurgers and 33% of the Female Fun Squad segments think that
Lotto Plus is new and different.
Q6/Q7. Using the scale provided, how strongly do you disagree or agree with the following?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Lotto Plus Ease of Understanding & Differentiation – Top-2 Box Summary (Agree)Base = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 86
Lotto Plus Average Estimated Annual Purchases
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
14
23
4
8
17
22
19
26
8
11
21
25
June 15, 2012
• Overall, respondents who would play Lotto Plus indicate they would buy it approximately 14 times per year or about once a month.
• YES Men and Jackpot Hounds believe they would play the game most often (about twice per month) while C-Store Dreamers, members of the Female Fun Squad, and Traditional, Older, Small Splurgers anticipate playing less often.
Q3. Based on this description, if this game were available, how often do you think you would you buy it?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Lotto Plus Average (Mean) Estimated Annual PurchasesBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 87
Lotto Plus Perceptions
June 15, 2012
• Two thirds or more agree that they like the top prize (66%), and 67% like being able to multiply winnings by 4.
• General perceptions of Lotto Plus tended to be less positive; less than a third of respondents feel this game provides good value for the money, think this game has good odds, think they would play this game regularly, or would want to play Lotto more often.
TotalYoung,
Entitled, Spontaneous
Men
Traditional, Older, Small
SplurgersFemale Fun
SquadC-Store
DreamersJackpot Hounds
n= 1003 67 245 242 229 220
[A] [B] [C] [D] [E] [F]This game appears fun to play 42% CD 52% aCD 16% 31% C 55% ACD 60% ACD
In addition to the top prize, I like the other prizes available 49% C 47% C 30% 49% C 61% AbCD 60% AbCD
I like the top prize 66% C 64% C 45% 68% C 74% AC 81% ABCD
There are lots of ways to win this game 36% C 42% Cd 18% 31% C 44% aCD 48% ACD
I like the name of this game 43% C 41% C 23% 39% C 55% AbCD 56% AbCD
This game provides good value for my money 29% CD 56% ACDEf 8% 19% C 36% aCD 42% ACD
I think this game has good odds 26% CD 51% ACDEf 7% 15% C 34% aCD 35% ACD
I think I would play this game regularly 26% CD 47% ACDe 4% 10% C 32% aCD 43% ACDe
I like being able to multiply my winnings by 4 67% bC 57% 50% 73% abC 78% ABC 78% ABC
This makes me want to play Lotto more often 24% CD 50% ACDEF 7% 16% C 32% aCD 32% aCD
Q8 Based on this description, please tell us the extent to which you disagree or agree with each of the following statements.
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Lotto Plus Perceptions – Top-2 Box SummaryBase = All Respondents
Colorado Lottery New Game Research 88
Lotto Plus Estimated Plays per Purchase
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
2.6Cd
2.3
2.0
2.4c
3.0AbCD 2.8
bCD
June 15, 2012
Those who would purchase Lotto Plus would buy on average 3 plays per purchase.
Lotto Plus Estimated Plays per PurchaseBase = Would Purchase Game
Total (n=753), Young, Entitled, Spontaneous Men (n=60), Traditional, Older, Small Splurgers (n=126),Female Fun Squad (n=184), C-Store Dreamers (n=191), Jackpot Hounds (n=196)
Q4. You indicated you would buy this game [INSERT Q3 RESPONSE]. If this game was available, how many plays do you think you might purchase at one time?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 89
Lotto Plus Estimated % of Time Purchasing Game
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
50%C
48%
41%
49%c
52%C
55%abCd
June 15, 2012
Those who would buy Lotto Plus would purchase the add-on about half the time.
Lotto Plus Estimated % of Time Purchasing GameBase = Would Buy Game
Total (n=783), Young, Entitled, Spontaneous Men (n=56), Traditional, Older, Small Splurgers (n=134),Female Fun Squad (n=194), C-Store Dreamers (n=200), Jackpot Hounds (n=199)
Q5a. What percent of the time do you think you might spend the extra $1 to add the Lotto Plus option?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 90
Lotto Plus Average Satisfactory Win Amount
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
$10 $10 $10
$12
$10 $10
June 15, 2012
Overall, a satisfactory win for Lotto Plus would be $10, $2 dollars less than the actual minimum win.
Lotto Plus Average (Median) Satisfactory Win AmountBase = Would Buy Game
Total (n=783), Young, Entitled, Spontaneous Men (n=56), Traditional, Older, Small Splurgers (n=134),Female Fun Squad (n=194), C-Store Dreamers (n=200), Jackpot Hounds (n=199)
Q9. As you know, not all lottery purchases result in someone winning a top prize. With this in mind and assuming you spent ___to play this game, what amount of money would you need to win from this game to be satisfied enough to play again?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Colorado Lottery New Game Research 91
Leverage Grid Analysis
The attributes reviewed were statistically linked to purchase intent to arrive at a derived motivation score. The motivational impact was plotted in relation to the perceived delivery of each of the attributes to highlight the most leveragable attributes to generate trial. A summary of the resulting plots, seen on the following page may be interpreted as follows:
June 15, 2012
Opportunities Hot Buttons
Irrelevant Cost of EntryOr Baseline
Hot Buttons: Key Drivers. These are essential attributes that are perceived highly. Points of leverage – Promote.
Opportunities: Highly motivating but not universally perceived as well delivered. Potential paradigm shifters – Invest.
Cost of Entry: Although considered well delivered, will not create incremental business. Represent norms or standards – Maintain.
Irrelevant: Not seen as important. Insufficient motivation to build value; Efforts may have no effect - Ignore.
Perceived Delivery
Deriv
ed M
otiva
tion
Colorado Lottery New Game Research 92
Makes me want to play Lotto more often
Like multiplying my winnings
I'd play regularly
Has good odds
Good value for my money
I like the nameLots of ways to win
I like the top prize
I like the other prizes available
Game appears fun to play
Leveraging Lotto Plus for Maximum Trial• The only strength identified for Lotto Plus is that the game appears fun to play, promoting this will have
positive effect as they are moderately motivating.• Improving perceptions of I think I would play this game regularly and this game makes me want to play
Lotto more often are opportunities as they are considered motivating but prospective players are not yet sold on them.
June 15, 2012
Perceived Delivery
Deriv
ed M
otiva
tion
Opportunities Hot Buttons
Irrelevant Cost of Entry
Colorado Lottery New Game Research 93
Leveraging Lotto Plus
Total Young, Entitled, Spontaneous Men
Traditional, Older, Small Splurgers Female Fun Squad C-Store Dreamers Jackpot Hounds
Game appears fun to play Hot Button Cost of Entry Hot Button Cost of Entry Hot Button Hot Button
I like the other prizes available Cost of Entry Irrelevant Cost of Entry Cost of Entry Cost of Entry Cost of Entry
I like the top prize Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry
Lots of ways to win Irrelevant Irrelevant Irrelevant Irrelevant Irrelevant Irrelevant
I like the name Cost of Entry Irrelevant Cost of Entry Cost of Entry Cost of Entry Cost of Entry
Good value for my money Irrelevant Cost of Entry Irrelevant Irrelevant Irrelevant Irrelevant
Has good odds Irrelevant Opportunity Irrelevant Opportunity Irrelevant Irrelevant
I'd play regularly Opportunity Opportunity Opportunity Opportunity Opportunity Opportunity
Like multiplying my winnings Cost of Entry Cost of Entry Cost of Entry Hot Button Cost of Entry Hot Button
Makes me want to platy Lotto more often Opportunity Opportunity Opportunity Opportunity Opportunity Irrelevant
June 15, 2012
Colorado Lottery New Game Research 94
New Game Preference
June 15, 2012
Colorado Lottery New Game Research 95
Favorite Game
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
29% 26% 27% 29% 30% 31%
16% 21% 21% 19%11% 13%
37% 30% 32%38%
44% 37%
18% 24% 20%14% 15% 19%
June 15, 2012
• Overall, 5 Card Cash was favored more than any other game evaluated; the game had particularly strong appeal with the C-Store Dreamers (44%) though the game was preferred by approximately one third or more of all surveyed.
• Lucky in Life was preferred by 29% of those surveyed and its appeal was fairly equal across all segments.• Colorado 3 and Lotto Plus had lower appeal overall across all audiences.
Q12. Please rank each of the concepts you have just evaluated in order of overall preference with 1 being the game you most prefer and 3 being the game you least prefer.
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Favorite GameBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 96
Reasons for Favorite Game Selection
Colorado/Arizona 3Perceived winnability and costs were considered strengths. There was also some recognition of Numbers play from other jurisdictions.
“Best chance to win.”“Because it has good odds and a good price.”
“Less risky.”“Quick & easy.”
“I like the $.50 bets.”“ONLY COST $1.00 TO PLAY.”“Kind of like horse betting.”
“Because we had a game similar to this in Michigan.”“It was fun, appeared to be a better deal.”
June 15, 2012
Lotto PlusAs an add-on to the current Lotto game, Lotto Plus’ strengths were it’s ease of application, it’s cost and the 4X multiplier factor.
“Easy to understand.”“Easy to understand - bigger payoff.”
“I like lotto already so $1 more doesn't seem horrible. Also like the winnings times 4.”“Quadruple the winnings.”
“4 times win.”“Best result possibilities for the money.”
5 Card CashEase of play, the Poker style theme, and odds were considered strengths.
“Easiest to play and understand.”“Simple, buy it! Check it! Celebrate!”
“It seemed the most fun.”“I like that you don’t have to select numbers”
“I like the Poker element and fact that you can spot a winner without having to wait for a drawing.”
“I like that the concept is different than a typical drawing and I prefer cards to other forms of gambling.”
“Seemed mostly likely to win.”“better odds”
Lucky in LifeStrengths included the games top prize and the name. The game was also perceived to be different from existing games.“The whole appeal to me with a lottery is that it is possible to
win a jackpot that will change your life...the others games don't offer a real jackpot.”
“Like the concept of $1000 per day for life.”“1000 a day for 30 years top prize.”
“I LIKE THE NAME.”“I like the name and the fact that I can win $1000/day.”
“It has the best overall winnings and is the most different from games I already play. It is a good value for my money as well.”
Q14. Why did you select [Insert game most preferred from Q12 (Q12=1)] as the game you liked least?
Colorado Lottery New Game Research 97
Least Favorite Game
[A] Total [B] Young, Entitled, Spontaneous Men
[C] Traditional, Older, Small Splurgers
[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds
17% 19% 16% 19% 14% 19%
32%37%
24%34% 42% 30%
18%
22%
24%
17% 15%14%
32%22%
35% 31% 29%36%
June 15, 2012
Overall, the least favorite concepts were Colorado 3 and Lotto Plus – each was ranked last by 32% of the respondents.
Q12. Please rank each of the concepts you have just evaluated in order of overall preference with 1 being the game you most prefer and 3 being the game you least prefer.
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Least Favorite GameBase = All Respondents
Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)
Colorado Lottery New Game Research 98
Reasons for Least Favorite Game Selection
5 Card CashPoker themes can be polarizing and some don’t like Poker and card related themes.
“Don’t like poker/don't like cards.”“I don't play cards so the concept seems more complicated
to me.”“Hard to understand completely.”
“Seems like a lot of hassle AND I don't like cards.”“I like the game, I just don't poker that much. It's still a
good game. They all are.”“Odds are too high. There should be a higher payout for
non-top winning –prizes.”
June 15, 2012
Lucky in LifeThe game was perceived to have poor overall odds and was found to be complicated.
“Are you kidding... 13 million to 1 odds.”“The odds are to big and I do not like the game.”
“Too complicated.”“Just didn't seem all that different from other games out
there and the name is silly.”“I believe this reminds me as how the Powerball is now
played. Besides I am cheap and would rather only pay a 1.00 and chance to win.”
Lotto PlusFor players who did not like Lotto, Lotto Plus did little to change their opinion. Others believed there may have been changes made to the current game.
“I don’t have very good luck with lotto.”“I have never liked the Lotto and Lotto Plus is just a
multiplier for the original game.”“It didn't appeal to me.”
“1-40 sometimes it seems like the regular games – nothing new.”
“Too similar to what is already available.”
ColoradoColorado 3 was perceived to be confusing by many; the odds were not perceived to be favorable and the top prize was perceived as being too small. Two draws per day were seen as excessive.
“To complicated.”“Confusing!”
“The largest prize is only $500?”“Didn't like the top prize.”
“The ROI is low for the amount of time and effort it requires.”“2 times a day drawings are too many. Can’t get to a store 2 times a day don’t like the odds seems to hard to figure out.”
Q13. Why did you select [Insert game most preferred from Q12 (Q12=1)] as the game you liked best?
Colorado Lottery New Game Research 99
Forecast Dynamics
June 15, 2012
New Game Sales Forecasting
• The Crestwood Model is based upon the volumetric formula shown on the right. The model forecasts a “sustaining sales rate.”
• Cannibalization is calculated independently, outside the model
• Elements that the model cannot account for in this test include:– The final game structure and graphics– Brand name changes– Brand development programs– Breadth of retail distribution– Retail merchandising– Game promotions..
June 15, 2012Colorado Lottery New Game Research 100
Unaided Game Awareness X
Expected Trial RateX
Purchase Dynamics(quantity & frequency)
XPrice
XExpected Loyalty
(loss tolerance & game odds)=
Annualized Sales
Colorado Lottery New Game Research 101
Sustaining Sales Forecast
5 Card Cash Lucky in Life Colorado 3
Estimated Unaided Awareness
High 25% 25% 25%
Low 12% 12% 12%
Sustaining Gross Sales @ Awareness Levels
High $34.4M $11.5M $4.3M
Low $16.5M $5.5M $2.1M
Sustaining Per Cap @ Awareness Levels
High $0.13 $0.04 $0.02
Low $0.08 $0.02 $0.01
June 15, 2012
• Game sales on all games will be dependent on awareness generated.• 5 Card Cash generates the highest sales potential, followed by Lucky in Life and Colorado 3 (Lotto Plus is
shown following)• Sales forecast is for sustaining levels, post introductory efforts.
Notes: 1. Awareness levels based upon SWAG and 2010 Image Study reported 46% Match Play “aided” awareness.2. Balance of forecast based upon key business metrics and Crestwood formula
Colorado Lottery New Game Research 102
Lotto Plus Sales Forecast
Current Players Non Players
% of Lottery Players 46% 54%
Current Sales $39.3M
Assumed Lotto Plus Awareness 100% 10%
Estimated Trial 22% 10%
Purchases per PlayLotto $1
Lotto Plus $1 $1
Gross Sales
Lotto $39.3M $0.4M
Lotto Plus $4.5M $0.4M
Total $43.8M $0.9M
Estimated Sales Increase
Within Segment 11% 100%
Total 14%
June 15, 2012
• Lotto Plus is expected to increase Lotto sales by up to 14%; almost all gains will come from Players.• Minimal cannibalization of current sales is expected as the majority of transactions appear to be single
ticket.
A
B
C
D
E
F
G
H
10
1
7
4
2
9
6
5
A
C
F
G
6
5
10
1
F
A 6
5
A = 28%
B = 3%
C = 23%
D = 13%
E = 5%
F = 23%
G = 2%
H = 2%
Using logistic regression the individual responses to a tournament of lottery games can then be turned into “preference shares”. These shares represent the likelihood that the player will choose each of the games they rated. While not ideal for individual predictions of behavior, in the aggregate this method has been shown to be a powerful predictor of consumer choice and an excellent way to assess cannibalization.
Tournament Process for Cannibalization Estimates
June 15, 2012Colorado Lottery New Game Research 103
Colorado Lottery New Game Research 104
Sources of Growth – Cannibalization of Existing Games
June 15, 2012
• Much of the spending would result from cannibalization of existing products with 2-3% incremental sales.• More than half of the spending is predicted to be cannibalized from Scratch (24% - 27%) and Powerball
(27%) while 22% to 26% of the spending would come from the existing Lotto game.• Cash 5 would see few adverse effects.• Retained Match Play sales will probably merge into other games in general.
Sources of Growth and CannibalizationBase = All Respondents (n=1,003)
A. 5 Card Cash B. Lucky in Life C. Colorado 3 D. Lotto Plus
27% 25% 24% 22%
4% 3% 5%5%
3%3% 4%
3%
22%23%
26%24%
14% 16%12%
14%
27% 27% 27% 30%
3% 3% 2% 2%
Colorado Lottery New Game Research 105
Demographics & Respondent Profile
June 15, 2012
Colorado Lottery New Game Research 106
Demographics
June 15, 2012
Total Young, Entitled, Spontaneous Men
Traditional, Older, Small Splurgers Female Fun Squad C-Store Dreamers Jackpot Hounds
n= 1,003 67 245 242 229 220[A] [B] [C] [D] [E] [F]
Gender Male 50% E 50% e 57% aE 51% E 39% 53% EFemale 50% c 50% 43% 49% 61% AbCDF 47%
Age
18-24 years 13% CD 22% ACDf 6% 7% 18% ACD 16% aCD25-34 years 19% C 30% aCdef 13% 20% C 21% C 20% C35-44 years 18% 21% 16% 24% aCe 17% 20%45-54 years 20% b 12% 24% aBdE 17% 15% 23% bde55-64 years 16% b 6% 19% Bf 17% b 18% b 12%65 years and older 14% 10% 22% abdEF 15% 11% 10%
Race
White or Caucasian 84% B 72% 89% ABEF 90% ABEF 82% b 80% bBlack or African American 4% cd 9% aCDef 2% 2% 4% 5% cAsian 3% C 14% ACDEF 1% 3% c 2% 2%Other [Please Specify] 10% bD 5% 8% D 5% 12% BcD 13% aBcD
Ethnicity Spanish, Hispanic, or Latino 13% CD 16% cD 8% D 4% 17% CD 18% aCDNot Spanish, Hispanic, or Latino 87% f 84% 92% AbEF 96% ABCEF 83% 82%
Education
Some high school 2% 1% 2% 1% 1% 2%High school graduate 11% cD 7% 7% 6% 17% abCD 14% bCDSome college or training 39% C 40% 30% 37% c 43% C 44% CBachelor’s Degree 31% 31% 33% 37% ae 27% 31%Post-graduate degree 17% eF 22% eF 28% AdEF 19% eF 12% 9%
Employment Status
Employed full-time 43% c 51% c 37% 48% C 44% 44% cEmployed part-time 10% D 10% 8% 5% 14% aCD 10% dSelf-employed 8% b 2% 11% aBef 9% b 6% 7%House Spouse 6% 4% 4% 5% 6% 9% cdStudent 7% C 17% ACDEF 5% 8% c 7% c 6%Retired 18% 12% 26% abdeF 18% 16% 14%Not currently in the workforce 7% b 2% 7% b 6% 5% 10% beOther 1% B - 2% B 2% b 2% b 1%
Income
Less than $25,000 18% D 28% acDe 16% d 10% 18% d 19% D$25,000 to just under $45,000 22% Bc 11% 16% 23% Bc 27% BC 26% Bc$45,000 to just under $55,000 12% b 6% 13% b 12% 14% b 12%$55,000 to just under $75,000 14% 11% 12% 14% 16% 16%$75,000 or more 34% e 43% Ef 42% aEF 41% aEF 26% 28%
Marital StatusSingle 26% C 33% C 20% 26% c 30% C 27% cMarried/cohabitating 59% 62% 65% adef 57% 55% 57%Divorced/widowed/separated 15% B 5% 15% B 17% B 15% b 16% b
Household Size (Average) 2.6 CD 3.0 ACDE 2.4 2.3 2.5 d 2.8 ACDE
Colorado Lottery New Game Research 107
Game Penetration
June 15, 2012
Game PenetrationBase = All Respondents
S6. When did you last play each of the following Colorado Lottery games? Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Total Young, Entitled, Spontaneous Men
Traditional, Older, Small Splurgers Female Fun Squad C-Store Dreamers Jackpot Hounds
n= 1,003 67 245 242 229 220
[A] [B] [C] [D] [E] [F]
Powerball 90% C 86% 83% 93% C 91% C 96% AbCe
Mega Millions 72% C 72% c 58% 73% C 77% C 83% AbCD
Lotto 80% C 81% c 70% 85% aCe 78% c 93% ABCDE
Matchplay 39% Cd 47% Cd 30% 32% 41% Cd 47% aCD
Cash 5 45% cD 49% cd 38% 36% 45% cd 56% ACDe
Scratch or Instant Games (of any value) 85% bC 74% 71% 86% bC 95% ABCD 94% ABCD
Colorado Lottery New Game Research 108
Average Weekly Spending by Game
June 15, 2012
Average Weekly Spending by GameBase = All Respondents
S9. Thinking about all of the Colorado Lottery games that you buy and play, approximately how much money do you usually spend on each one of these games in a typical week?
Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level
Total Young, Entitled, Spontaneous Men
Traditional, Older, Small Splurgers Female Fun Squad C-Store Dreamers Jackpot Hounds
n= 1,003 67 245 242 229 220
[A] [B] [C] [D] [E] [F]
Powerball $2.48 CD $4.22 ACDE $1.11 $1.68 c $2.67 CD $3.49 ACDe
Mega millions $2.39 CD $4.55 ACDEF $1.13 $1.51 c $2.57 CD $2.94 aCD
Lotto $1.74 CD $3.24 ACDEF $0.87 $1.00 $2.08 aCD $2.04 aCD
Matchplay $1.65 cD $3.85 ACDF $0.92 d $0.51 $1.96 d $1.52 cD
Cash 5 $1.47 CD $4.42 ACDeF $0.56 $0.47 $1.80 cd $1.31 CD
Scratch or instant games (of any value) $3.80 CD $7.58 ACDEf $1.11 $2.19 c $4.47 CD $5.10 ACD
Colorado Lottery New Game Research 109
Appendix
June 15, 2012
5 Card Cash
5 Card Cash is a game where you get 2 ways to play your hand—an instant win game and an evening draw game with one ticket.
You can win up to $100,000 in the nightly drawings and $5,000 instantly.
When you play 5 Card Cash, your ticket will print with 5 quick picked playing cards.
You win instantly if your 5 Card Cash hand is a pair of Jacks or better, and the words "Instant Winner" will print right on your ticket. You can also win again in the nightly drawings by matching 2 or more cards in any order.
Cost per play: $2.
A fun new way to play Poker where your hand has 2 ways to win!
Sample ticket
Instant Win PrizesPoker Hand Prize Odds
Royal Flush $5,000 649,740 Straight Flush $1,000 72,193 4 of a Kind $100 4,165 Full House $40 694 Flush $25 509 Straight $15 255 3 of a Kind $7 47 2 Pair $4 21 Pair of J, Q, K, A $2 10
Overall Instant Win Odds: 6
Draw Game PrizesMatches Prize Odds
5 $100,000 2,598,9604 $1,000 11,0593 $25 2402 $2 16
Overall Draw Game Odds: 15
Check your instant win
hand to see if you won instantly!
Check your draw wins
that evening for the same
cards
Colorado 3
Colorado 3 gives you lots of ways to win with just three (3) numbers.
Colorado 3 lets you pick your numbers and the different ways they come up, and you can win up to $500! Set your own strategy and you can win with more than one wager type.
To play Colorado 3:• Pick your three (3) numbers on the play slip, or choose Quick Pick.• Select the bet type you’d like to play:
o Straight – match your numbers in exact ordero Box – match your numbers in any ordero Straight & Box – both bet types in one wager
• Choose the draw you wish to play: midday, evening, or both.
You win if your numbers match the Lottery numbers according to your bet type.
Colorado 3 costs as little as $0.50 per bet; all wagers must be in increments of $1. Drawings are twice per day.
Sample ticket
Pick 3 numbers or select Quick Pick
Choose your bet type
Select the draw time
The fun new way to play with only 3 numbers and lots of way to win!
Colorado 3 Prizes
Bet Type Bet Amount Match
ExamplePrize Odds Your
Numbers Lottery Draws
Straight $0.50 Your numbers in exact order 125 125 $250 1,000Box $0.50 Your numbers in any order 125 125, 152, 215, 251, 512, 521 $50 167
Straight & Box $1.00
One Straight bet (exact order)125
125 $250 1,000One Box bet (any order) 125, 152, 215, 251, 512, 521 $50 167
Lotto Plus
The new Lotto Plus wager on Colorado Lotto lets you multiply your Lotto winnings by 4 times!
You still play Lotto like normal, but with Lotto Plus, any winnings you might receive for Lotto will be multiplied by 4 (except the jackpot).
Adding Lotto Plus is easy:• Pick your six (6) Lotto numbers, or choose Quick Pick.• Select Lotto Plus on the play slip.
Adding Lotto Plus costs an additional $1 for a total of a $2 Lotto wager.
Increase your Lotto winnings with Lotto Plus!
Sample ticket
Play Lotto as you normally
would
Add Lotto Plus
Lotto Prizes
MatchesWithout
MultiplierWith Lotto
Plus Odds 6 Jackpot Jackpot 5,245,7865 $1,000 $4,000 24,2864 $50 $200 5553 $3 $12 37
Lucky in LifeLucky in Life gives you the chance to win $1,000 per day!
Playing Lucky in Life is easy: just pick five (5) numbers from 1 to 40 and a “Lucky Ball” number from 1 to 21 on the play slip, or choose Quick Pick.
You win if you match the Lucky Ball or at least two (2) numbers drawn by the lottery. If you match all 5 numbers and the Lucky Ball, you win $1,000 per day.
The $1,000 per day is for 30 years. Lucky in Life is played in Colorado, Oklahoma, and Arizona. Drawings are held twice a week.
Price per play is $2.
Win $1,000 every day!
Sample ticket
Numbers Matched
Lucky Ball Match Prize Odds
5 1 $1,000 per day 13,818,168 5 0 $25,000 690,908 4 1 $2,000 78,961 4 0 $100 3,948 3 1 $50 2,322 3 0 $10 116 2 1 $15 211 2 0 $2 11 1 1 $5 53 0 1 $4 43
Overall Odds of Winning a Prize: 7
Choose 5 numbers and 1 Lucky Ball number or use Quick
Pick
Check your numbers in the drawing to see
if you won.