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spacer July 15, 2008

DELAWARE LOTTERY READIES FOR CHANGING RETAIL CLIMATE
State agency will utilize experience, partnerships, and broad support to achieve its mission

Dover, DE -- With more than 500 licensed retail outlets, Video Lottery agents thriving at the State’s three licensed horseracing facilities, and a 33-year history of responsible revenue growth, the Delaware Lottery is preparing to extend its successful track record into the near future. While a significant effort is being made to keep Delaware competitive in the face of increased gaming in neighboring states, Lottery Officials aim to protect and grow the agency’s longest running form of revenue generation: Instant and Online ticket games.

With continual changes in consumer behavior and retailing technology, the Lottery anticipates the future success of its ticket games (sometimes referred to as Traditional Lottery) will rely more on retail establishments beyond the corner store or pay-at-the-pump gas station. New retailing business clusters have emerged and several areas of Delaware have experienced significant population booms. With new roads, housing developments, and retail clusters springing up throughout the state, the Lottery is pleased to work with many companies new to Delaware, as well as other new types of businesses.

“We are very proud of the extensive and diverse retailer network the Lottery has established during the past three decades,” said Wayne Lemons, Delaware Lottery Director. “Our unique retailer relationship is a win for both parties and truly benefits all state residents. Strengthening existing business community ties and forging new ones will help the Lottery continue to deliver on its mission, and help local merchants continue to earn profits.”

Lottery officials give credit to this network of licensed retailers as the lifeblood of the Traditional Lottery system, which continues to grow in step with the State’s population and increased consumer demand. In Delaware, the licensed lottery retailer network has become more diverse and has grown by more than 15 percent since 2003. The Office estimates that it may operate with nearly 600 licensed retailers by the end of 2009. For each newly issued license, a detailed evaluation and stringent application process is required. The process assists Lottery officials in determining if applicant locations will be stable, profitable, and financially secure.

All Lottery license applicants undergo criminal history background checks and evaluations of their financial condition to make sure the State is gaining a partner that will manage lottery games and revenues honestly and with integrity. Brian Peters, the Lottery’s Assistant Director for Traditional ticket games, says every step of the licensing process is essential.

“The background of owners; the type of business and products sold; store traffic; location in the community, and A.D.A. accessibility compliance are all factored in to the decision process to make sure our retailers will serve the needs of the lottery-playing public and the State,” said Peters. “We are very fortunate here in Delaware to have a retail business community willing to make the commitment to our standards, especially those business owners who have improved access to their stores to accommodate customers with disabilities.”

The Lottery initiated its A.D.A.-based Retailer Accessibility Process in 1998, and the program has become a model for other state lotteries across the country. The ongoing Process is expected to remain an important focus of the Office as it evaluates applications from the evolving retail sector of the Delaware business community.

Lottery games generate revenue for licensed retailers through a commissions-based system and a variety of bonus and incentive programs. In addition, Lottery retailers typically enjoy increased sales of other non-lottery products from Lottery players who visit the outlet to buy tickets. To drive consumer traffic to licensed locations, the Lottery conducts significant radio, television, print, and outdoor advertising programs designed to increase awareness throughout the state, regionally, and globally through its official Website at delottery.com. Media and communications segments of the Delaware business community benefit from these activities, as well.

Once a retail store becomes officially licensed, the Lottery takes an active role to support the efforts of the business. To ensure retailers can properly accommodate traffic increases, the Lottery provides free training, marketing and promotional materials, and suggests promotional activities designed to draw new customers to stores. By doing so, the agency fortifies its commitment to its relationship with the licensed retail network.

Since the start of operations in 1975, the Delaware Lottery has contributed more than $2.8 billion to the state’s General Fund to help finance needed state services that benefit everyone in Delaware. The Lottery offers a variety of games: POWERBALL®, HOT LOTTO®, MULTI-WIN LOTTO, PLAY 3, PLAY 4, and assorted Instant Games.

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Vernon Kirk
Director,
Delaware Lottery

Delaware Lottery Office
McKee Business Park
1575 McKee Road, Suite 102
Dover, DE 19904
Phone: 302-739-5291
Fax: 302-739-6706

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