South Dakota Lottery › docs › Commission Meeting.pdfWire Act-DOJ Opinion FY19 Audits . IGT...
Transcript of South Dakota Lottery › docs › Commission Meeting.pdfWire Act-DOJ Opinion FY19 Audits . IGT...
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South Dakota LotteryCommission Meeting
June 13th, 2019
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Executive Director
Comments
2
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Executive Director Comments
▪ Wire Act-DOJ Opinion
▪ FY19 Audits
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IGT Online and Related
Services Project Update
4
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IGT Online and Related Services
Project Update
▪ Project Kickoff - January 15
▪ Requirements Gathering
▪ Weekly Reviews
▪ All FRD’s have been approved
▪ Business Analytics Tools
▪ Data Conversion
▪ Acceptance Testing
▪ New Terminal – June 3 to July 12
▪ Aurora System – August 19 to October 11
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IGT Online and Related Services
Project Update
▪ New Terminal and Peripherals
▪ Installation begins July 22
▪ Parallel Processing
▪ October 13 to November 3
▪ Conversion Date
▪ Sunday, November 3, 2019
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Update on Open
Meeting Laws and SB91
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SOUTH DAKOTA DEPARTMENT OF REVENUE
Update on Open
Meeting Laws and SB 91
June 2019
Michael S. Houdyshell – Chief Legal Counsel
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Objectives
• Brief overview of state open meeting laws
• SDCL ch. 1-25
• 2019 Legislative changes (SB 91)
• Minor substantive changes to SDCL ch. 1-25
• Reorganization/form and style changes
• Effective July 1, 2019
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Open Meetings
• Basic Rule: “The official meetings of the state and its political
subdivisions are open to the public…” SDCL 1-25-1
• Purpose: “…to prohibit actions being taken at secret meetings where it
is impossible for the interested public to become fully informed and to
detect improper influences.” Olson v. Cass, 349 N.W.2d 435 (SD 1984)
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What is an Official Meeting?
• “Any meeting of a quorum of a public body at which official business or
public policy of the public body is discussed or decided…whether in
person or by means of teleconference.” SB 91, § 1(3)
• So, regular or special meetings of the public body….But, what about:
• Lunches?
• Sporting/social events?
• Email discussions?
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What is an Official Meeting?
• Email discussions?
• Definition of teleconference includes “any…electronic medium,
including the internet.” SB 91, § 1(4)
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Official Meetings -- Exceptions
• All found in SDCL 1-25-1
• Meetings with other public bodies
• “provide information or attend the official meeting of another
[body]…”
• 2nd public body must meet all notice requirements of Ch. 1-25
• Press conferences “called by a representative of the public body.”
SB 91, § 2
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Official Meetings -- Exceptions
• Events hosted by non-governmental entities where the public
body does not control the agenda. SB 91, § 2
• Must post a “notice of quorum” in lieu of an agenda
• Must meet the posting requirements of SDCL ch. 1-25
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Public Notice
• SDCL 1-25-1.3 (applies to State, including all boards and agencies)
• Must provide notice of official meeting with proposed agenda, including the
date, time, and location of meeting
• Notice must be:
• Visible to the public, readable, and in an accessible location
• Posted at the principal office of the public body
• At least 72 hours before the meeting is scheduled to start
• Does not include weekends or holidays SB 91, § 7
• Must also be posted on state website designated by BFM
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Questions?
South Dakota
Department of Revenue@SDRevenue South Dakota DOR
Sign-up for our
E-Newsletter
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Declaratory Ruling 19-1
17
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FY 19 Instant/Draw
Review
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YoY % Change in Instant Sales
19
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20
City FY18 FY19 $ Change % Change
Sioux Falls $7,416,352 $7,519,602 $103,250 1.39%
Rapid City $3,638,756 $3,897,296 $258,540 7.11%
Aberdeen $1,025,190 $1,163,512 $138,322 13.49%
Watertown $1,083,065 $1,102,702 $19,637 1.81%
Brookings $776,903 $801,935 $25,032 3.22%
Mitchell $779,210 $775,621 -$3,589 -0.46%
Yankton $656,887 $762,334 $105,447 16.05%
Pierre $632,166 $689,507 $57,341 9.07%
Spearfish $570,031 $689,332 $119,301 20.93%
Huron $509,300 $637,854 $128,554 25.24%
Rest of the state $10,675,151 $11,763,331 $1,088,180 10.19%
State Total $27,763,011 $29,803,026 $2,040,015 7.35%
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YoY % Change in Draw Sales
21
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City FY18 FY19 $ Change % Change
Sioux Falls $5,699,977 $6,395,704 $695,727 12.21%
Rapid City $3,484,283 $3,751,116 $266,833 7.66%
Aberdeen $1,232,887 $1,365,135 $132,248 10.73%
Watertown $1,256,329 $1,316,259 $59,930 4.77%
Yankton $881,596 $905,257 $23,661 2.68%
Pierre $774,826 $876,600 $101,774 13.14%
Mitchell $789,111 $853,719 $64,608 8.19%
Brookings $616,731 $695,461 $78,730 12.77%
Spearfish $639,999 $684,954 $44,955 7.02%
Huron $499,443 $535,184 $35,741 7.16%
Rest of the state $10,228,877 $11,199,452 $970,575 9.49%
State Total $26,104,059 $28,578,841 $2,474,782 9.48%
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Sales Report
23
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24
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
07-Ju
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Sale
s
Week Ending
Instant Ticket Sales
FY18 INSTANT FY19 INSTANT
(July 1st to May 31st)
FY 2019 - $29.80MFY 2018 - $27.76M
7.35% increase
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25
Instant
Top Prize
Winners
Since
March
$50,000 Top Prize $12,000 Top Prize
Drew Reiner$5 20X
Todd Champagne$2 Deuces Wild
$10,000 Top Prize
Rikki Schad $2 Super Triple 777
10 Top Prize Winners
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Instant Top Prize Winners
• $50,000 20X (Sioux Falls)
• $30,000 Fireball Bingo (Rapid City)
• $12,000 Deuces Wild (Rapid City)
• $12,000 Deuces Wild (Wanblee)
• $10,000 10X (Sioux Falls)
• $10,000 Triple 777 (Lemmon)
• $10,000 Triple 777 (Rapid City)
• $5,000 Goat Load of Cash (Hill City)
• $5,000 $250,000 Multiplier (Sioux Falls)
• $5,000 5x (Vermillion)
• $5,000 $50,000 Bonus Play (Sioux Falls)
• $5,000 $300,000 Series (Elk Point)
Over 45 $1,000 Winners
Over 250 $500 Winners
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27
Hit Family
No Top Prizes!
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Polaris Dollars ‘N’ Dirt
• South Dakota State Fair Special!
• Polaris Ranger 570• 3 – Instant Wins• 2- Second Chance
• Total of 5 ATV’s Given Away
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Silver & Gold
• Non-Break Even Ticket
• Over 22,000 Prizes from $50 - $500
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30
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
$2,200,000
$2,400,000
$2,600,000
$2,800,000
$3,000,000
$3,200,000
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Week Ending
Lotto Sales
FY18 LOTTO FY19 LOTTO
(July 1st to May 31st)
FY 2019 - $28.58MFY 2018 - $26.10M
9.48% increase
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31
Lotto Winners
$25,000 per Year/$390,000Winner
Barbara Ordal (Madison) Lucky For Life
$200,000 Winner
Leo Bald Eagle (Rapid City) Powerball Power Play
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Retailer Spotlight
Bruce Nelson - Manager
DJ’s Convenience in Pierre has sold two winning tickets within a 30 day window.
• $20,000 Lotto America Ticket
• $50,000 Powerball Ticket
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$6.40$6.72
$8.40$8.65
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
FY 2018 Actual (Cash Basis) FY 2019 Estimates
Millions
Instant and Online FY19 Revenue
Projections as of May 31, 2019
Instant Games Lotto Games
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Marketing/Advertising
Report
34
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Marketing Report
1.Makin’ Bacon Launch & 2nd Chance Promotion
2.New Year’s Rockin’ Eve Powerball Promotion
3.“Dollars N’ Dirt” Polaris 2nd Chance Promotion
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Makin’ Bacon 2nd Chance
Promotion
Argus Leader Story
New South Dakota Lottery scratch ticket could get
you a year’s worth of pork
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Makin’ Bacon in Rapid City
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Pork Winners
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New Year’s Rockin’ Eve
Powerball Promotion▪ Promotion Dates: June 15 – September15
▪ Drawing on September 20
▪ Promote 2 SD Winners leading up to NYE
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“Dollars N’ Dirt”
Polaris 2nd Chance Promotion
▪ Looking at August Launch
▪ State Fair Special
▪ 3 Instant Win / Two 2nd Chance Winners
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Video Lottery Report
41
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42
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
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Week Ending
Video Lottery Net Machine Income
FY19 Net Machine Income FY18 Net Machine Income
(July 1st to May 31st)
FY 2019 - $104.82MFY 2018 - $100.13M
4.69% increase
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$109.45$112.15
$0
$20
$40
$60
$80
$100
$120
FY 2018 Actual (Cash Basis) FY 2019 Estimates
Millions
Video Lottery FY 19 State Share Revenue
Projection as of May 31, 2019
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1,323
9,113
1,317
8,943
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Establishments Terminals
Number of Terminals and Establishments
as of May 2019
FY 2018 FY 2019
Establishments
0.45% decrease
Terminals1.87% decrease
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45
5,897 5,439
4,905
3,220
3,674 4,038
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000M
ay
Jun
July
FY18
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
July
FY19
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Terminal Counts - Legacy vs. Line
Legacy Machines Line Machines
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46
492461
351
465
522
301
0
100
200
300
400
500
600
700
800
FY17 FY18 FY19 (YTD)
New and Destroyed Terminals
New Destroyed
(July 1st to May 31st)
New Destroyed
FY 2019 - 351 FY 2019 - 301
FY 2018 - 382 FY 2018 - 385
8.12% decrease 21.82% decrease
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47
$49.80 $49.74$51.77
$92.35 $92.44 $93.74
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100M
ay
Jun
July
FY18
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
July
FY19
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
NMI/Terminal/Day - Legacy vs. Line
Legacy NMI per Machine per Day Line NMI per Machine per Day
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Multi-State Lottery
Association
48
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MUSL
▪ As a member of MUSL, we are required to participate in an annual Security Certification that is due by June 30.
▪ This certification ensures the requirement agreed upon by the MUSL members are being followed.
▪ Cesar Contreras from MUSL will be visiting the SD Lottery during the week of September 9th to complete the MUSL Rule 2 Review. This audit is completed every 2 years.
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