May 2019 Cheryl Couvillion Delaware Lottery SPORTS LOTTERY-HISTORY - - PowerPoint PPT Presentation

May 2019

Cheryl Couvillion Delaware Lottery

SPORTS LOTTERY-HISTORY

• PASPA 1992 - Delaware is one of four

states permitted to offer Sports Lottery

• September 10, 2009

– Delaware successfully launched Sports Lottery at our 3 Casino Sportsbooks – Pro Football Parlay Wagering Only

• Parlay - multiple wagers/all wagers must win
• 4 parlay card offering

– 3-game minimum per card

• Off the board parlay wagering
• 2010-2017

– Expanded offering: New cards, Futures, Preseason and Post Season wagering

RETAILER EXPANSION

• 2012: Expanded to 31 select locations

– Targeted Sports bars & restaurants

• 2013: Sports application was integrated into

retailer WAVE terminal—allowed for more expansion

• Continued to optimize the number of retail

locations

Year # Retailers 2012-2013 31 2013-2014 69 2014-2015 83 2015-2016 102 2016-2017 104 2017-2018 110 2018-2019 102

SPORTS LOTTERY - Retailers

• Convenience for our players
• Football crowds – Retailers are able

to help reduce the lines at the Sportsbooks

• One third of our Sports retailers are

able to cash up to $1500 (no IRS)

– Standard: up to $600

• Retailers are able to cash all casino

Sports tickets within their approved cashing limits

RETAILER EXPANSION

• Why not offer football wagering at all 650 retailers?

– Customer service – Interior space/ Sufficient parking – Cash handling – Weekly parlay card distribution

• Print Tuesday night into Wednesday
• Hand deliver by Wednesday afternoon
• Optimum number

– Sufficiently covers the state

SPORT LOTTERY 2018

• June 5th – Post-PASPA: First state in

country to offer full Sports Wagering at our 3 Casino Sportsbooks

• August - Football Parlay Card Wagering at

current Sports Retailer Locations

– Pro and college football – Off the board wagering – Minimum of 3 selections per card – 2019: Introduced a Super Bowl proposition card

SALES/HANDLE THROUGH 2019

Year Total Sportsbooks Retailers 2009-2010 $10.8M $10.8M n/a 2010-2011 $12.8M $12.8M n/a 2011-2012 $17.8M $17.8M n/a 2012-2013 $25.4M $19.0M $6.4M 2013-2014 $31.0M $19.2M $12.2M 2014-2015 $37.8M $17.4M $20.4M 2015-2016 $39.4M $16.4M $23.0M 2016-2017 $46.1M $18.5M $27.6M 2017-2018 $46.4M $17.0M $29.40M 2018-2019 $145M $114.3M $30.7M

Pro Football All Sports

SPORTS LOTTERY 2018-2019

• Retailers increase – 4.64%

– Expected a 50% decrease

• Sportsbooks increase – 572.4%
• Total Sports increase - 212%.

SALES HOLD THROUGH 2019

Year % 2009-2010 32.31% 2010-2011 38.74% 2011-2012 27.13% 2012-2013 20.74% 2013-2014 35.71% 2014-2015 36.65% 2015-2016 27.85% 2016-2017 12.15% 2017-2018 36.54% 2018-2019 16.88%

• Hold = Sales – winnings
• Expected a 5% hold with

full sports wagering

• Current hold – 16.88%

GENERAL FUND CONTRIBUTION

Year 2009-2010 $1.53M 2010-2011 $2.19M 2011-2012 $2.11M 2012-2013 $2.24M 2013-2014 $5.46M 2014-2015 $6.97M 2015-2016 $5.27M 2016-2017 $2.17M 2017-2018 $9.03M 2018-2019 $11.9M

31.8%

REVENUE ALLOCATION

SPORTSBOOKS-share in profits and losses:

• 50% - GF (less admin expenses)
• 40% - Tracks
• 10% - Purses

(less player winnings and vendor fees)

RETAILERS-receive a 5% sales commission + 1% cashing commission

MARKETING & ADVERTISING

Rebranding 2018

MARKETING & ADVERTISING

MARKETING & ADVERTISING - 2018

• Sports Pick introduction: launch

campaign

• Football season: full campaign

– Point of sale at retailers

• Social Media
• Lottery website

FUN FACTS

• Since 2009 : 24.5 Million Wagers

– Overall handle: Sportsbooks 78% Retailers 22% – 1.18 Million Winning Wagers

• 2018-2019

– Wager Averages – Retailer $10; Sportsbooks $60; Overall $35 – 250 Terminals – Sportsbooks 75 (25 self-service); Retailers 175 – 15 Million parlay cards printed for 2018-2019 season – Most popular sports wagers – Football, Basketball, Baseball – Least popular sports wagers – Auto Racing, Golf, Boxing

FUTURE OF SPORTS LOTTERY

• We are in the process of reviewing:

– Mobile Wagering – Possible expansion of the product offering beyond football to the current Sports retailers

• Surrounding states offer Sports wagering –

change in sales volume?

VENDORS - Behind the scenes

• Central System Provider – Scientific Games
• Risk Manager – William Hill
• Sports Software Provider – Stadium

Technologies

• Parlay Card Printer – Associates

International

• Ad Agency – OneMagnify