Arkansas Scholarship Lottery Player Rewards Programs

David BardenASL Vice President of Gaming

Overview

The Arkansas Scholarship Lottery (ASL) launched an innovative, multi-faceted marketing

program that offers additional opportunities for players to win cash as well as the chance to

earn points that can be redeemed for prizes.

Rewards Programs• Customers are familiar with rewards programs.• Ex. Banks, Airlines, Hotels, and Grocery Stores.• Some objectives of rewards programs:

- Retain existing customers.- Reward most valuable customers.- Acquire new customers.- Establish customer relationship.- Understand purchase behavior.- Improve marketing efficiency.- Build sales.

200

700

1,200

1,700

2000 2006 2008

9731,341

1,807

Estimated Total Memberships (Millions)

Source: Colloquy Industry Survey

+35%

+38%

Rewards Program Participation is Soaring

WebsiteWebsite Players’ Players’ ClubClub

Rewards Rewards ProgramProgram

Websites vs. Players’ Clubs vs. Rewards Programs

Rewards Programs

With robust rewards offerings available in the marketplace already and a growing emphasis

on online interactivity, player rewards programs are a natural progression for the

lottery industry.

ASL Opportunities1. Build a strong relationship with players from

launch.

2. Maintain player interest.

3. Reward players for playing our games.

4. Provide added value for instant games.

5. Maintain top prize availability throughout the life of an instant game.

6. Create a dynamic and engaging web presence.

7. Communicate directly with players through email.

Program Introduction• ASL online player services fall under the

umbrella players’ club named The Club.• Instant vendor Scientific Games administers

the player services, website, and drawings.

Program Introduction• Player registration began with the lottery

startup on September 28, 2009.• Players register for a free account with their

email address, contact information, and password.

The ClubPlayers’ Club benefits include:

• Lottery email updates.

• Website with lottery news and events.

• Player polls.

• Access to Play It Again™ and Points for Prizes™ services.

ASL Website

The Club Log In Page

Play It Again™• One top prize amount is awarded through a

second-chance drawing at the end of every instant game.

• Players submit non-winning tickets online.

• Allows a top prize to remain available to players throughout the life of every game.

• All player services are accessed online. Mailed ticket entries are not accepted.

• Winning tickets are not accepted.• The player enters a 12-digit number from the

ticket front and a 13-digit number from the ticket back.

Submitting Non-Winning Tickets

• “Visit myarkansaslottery.com to Play It Again!” is printed on both side borders of every ticket.

• Entry instructions and Points for Prizes™ logo appear on the back of tickets.

Ticket Markings

Additional Second-Chance Drawings• Some instant games feature additional second-chance

opportunities for prizes such as trips or prize packs.

• Web-based games offer players a predetermined, interactive game to reveal their entries.

• Ex. The Price Is Right® and World Poker Tour®

• Announced in January 2010 and implemented in February.

• For every non-winning ticket entered, players also earn rewards points that can be redeemed in drawings or for merchandise.

Points for Prizes™

Points Redemption CenterCatalog includes:• Lottery-branded merchandise (t-shirts, hats, etc.)• Apparel, accessories, outdoor items, electronics, and

other merchandise. • Gift cards, magazine subscriptions, and discounts.• Enter for occasional prize drawings including trips.• Music downloads coming soon.

Ticket Entry Process

0

20,000

40,000

60,000

80,000

100,000

120,000

Oct Nov Dec Jan Feb

60,573

83,324

95,577

109,093117,349

Total Registered Players

Impact of Introducing Points for Prizes™

Entry Activity through mid-March 2010• Approximately 18% of eligible tickets have been

entered by players.

• Approximately 3,000 items have been redeemed from the Points for Prizes™ store.

• Top item by quantity ordered: restaurant.com certificate (1,763 ordered to date).

• $191,000 awarded in Play It Again™ prizes.

Entry Activity through mid-March 2010• More than 122,000 registered players since launch.

• Approximately 1,500 new registrations per week.

• More than 11 million non-winning tickets entered.

• More than 103 million Points for Prizes™ points earned.

Continuing to Grow• ASL’s player rewards programs will continue to

grow and change to maintain the relationship these programs have established with players.

• “Double Points” promotions:– target specific game or multiple games;– limited time periods or for life of game.

• Excellent opportunity to spur sales for slower moving/older games.• “On Sale” store items:

– limited time “points pricing reductions” on featured items within PFP store.

“This is the greatest thing ever!! I love to get away from life and just sit down to enter all of my non winning tickets to win something else!!!! Thanks for doing this. Keep me updated for any other ideas ya'll come up with.”

- Ashley Henderson, Hensley, AR