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Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

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Page 1: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

Colorado Lottery Tracking Study Presentation

October 2011 (W3)

for Colorado Lottery

bySimon Jaworski

Page 2: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

22

Colorado Lottery Tracking Study: Content

BACKGROUND, OBJECTIVES & METHODOLOGY

KEY FINDINGS & RECOMMENDATIONS

AD AWARENESS

SECOND CHANCE DRAWINGS, SOCIAL MEDIA, WEBSITE &

BENEFITS

OVERALL LOTTERY PLAYERSHIP

SCRATCH GAMES

MULTI-STATE JACKPOT GAMES – POWERBALL & MEGA MILLIONS

OTHER DRAWING GAMES – LOTTO, CASH 5, MATCHPLAY

KEY LOTTERY DYNAMICS: PLAYER TYPE, DAY PLAYED,

LOTTERY OPINIONS & GAME SATISFACTION RATINGS

Page 3: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

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Background

TRiG is conducting a point-in-time tracking study for Colorado Lottery and Scientific Games: Wave 1: April 18- April 26 (conducted for CO Lottery and Cactus) Wave 2: June 3- June 13 (conducted for CO Lottery and Cactus) Wave 3: September 19 - September 29

TRiG has been conducting this study with the following focal points:

1. Data Continuity with historical Colorado Lottery tracking studies

2. Ensuring data collected online comports with previous RDD only studies

3. Managing sample to be reflective of overall Colorado population

There are two key goals for this Colorado Lottery Point-In-Time Tracking Study:

1. To give the Lottery and Scientific Games accurate and relevant information, to enable both parties to make sound business decisions based upon market trends.

2. To enable the Lottery to use the new Tracking Data in conjunction with the historical information captured over the previous Telephone Tracking Study, and to make both the study and the data a seamless integration into the lottery’s business plan, on a weekly, monthly and annual basis.

Page 4: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

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Methodology

604 Colorado respondents participated in a 15 minute survey in Wave 3 506 completed online 98 completed by telephone interview

The respondents: Must be older than 18 years of age Must not have moral objections to Colorado running a state lottery Must not work for an advertising agency, market research company,

marketing consultant, any type of Lottery or a store that sells lottery tickets Phone respondents must not have internet access

Margin of Error – Statistical Sample Accuracy at 90% confidence on n=600 completes is + or – 3.4%

Page 5: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

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Sample Frame

W1 (N = 596 completes) W2 (N = 601 completes) W3 (N = 604 completes)

Gender breaks W1 W2 W3 Colorado Population– Female 51% 52% 51% 51%

– Male 49% 48% 49% 49% Age breaks (% of adult population)

– 18-24 10% 14% 8% 11%– 25-34 17% 17% 21% 20%– 35-44 17% 19% 17% 20%– 45-54 24% 22% 23% 20%– 55-64 17% 16% 16% 14%– 65+ 15% 12% 15% 15%

Race*– Caucasian 81% 84% 82% 84%– Asian 3% 3% 4% 3%– African American 5% 5% 5% 4%– Other 15% 9% 12% 10%

Ethnicity– Hispanic 21% 19% 22% 21%– Not Hispanic 79% 80% 77% 79%

* Percentages total more than 100% as respondents were allowed to select more than one answer choice

Page 6: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

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Key Findings

Page 7: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

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Key Findings (1) – Ad Awareness

63% of respondents recall viewing or hearing Colorado Lottery advertising within the past month significantly lower than W2 (but similar to W1).

Scratch game Unaided Awareness is up significantly due to Wheel of Fortune.

Wheel of Fortune represented 16% of the total 22% of Scratch Game unaided Ad awareness.

Awareness and understanding of Mega Millions should still be a #1 priority for the Colorado Lottery moving forward as there is a great opportunity to increase player penetration and trial.

Page 8: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

88

Key Findings (2) – Social Media

Over 70% of Coloradoans utilize social media frequently.

58% of Coloradoans are Facebook users and Google Talk use is up to 20% in W3. Social Media users skew younger.

38% access Social Media via their mobile phone. (95% through laptop or PC).

Email and the Lottery website are the most popular communication channels for winning numbers and contest/promo information.

However, there is still only limited interest in Lottery contests and promotions information on Facebook (8%).

95% of Facebook users are unaware of Colorado Lottery Mega Millions promotions on the Facebook site.

Page 9: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

99

Key Findings (3) – Website & Loyalty Programs

The number of respondents who have visited the CO Lottery website is up significantly in Wave 3, from 47% to 53%!

Mean score ratings are up for the CO Website, with only one issue being of any consequence (Navigation at 8%)

Almost half of Coloradoans participate in loyalty programs.

80% of Coloradoans who have a loyalty card belong to a Supermarket loyalty program and more than half have a Credit Card and/or Frequent Flyer program they belong to.

Over half of all respondents rate the appeal of the VIP club as 8 or higher.

However, among the core players, 70% of Past Month players rate the Colorado Lottery VIP club as a 8, 9 or 10 in terms of appeal.

85% of Coloradoans are unaware of the “Sign and It’s Yours” campaign.

Only 4% claim to recognize the campaign.

Page 10: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

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Key Findings (4) – Lottery outlets & Purchase Days

47% of respondents purchase tickets at convenience stores regularly.

35% buy at grocery stores, up significantly in W3 (similar to W1).

More than half of Past Month players purchase at both outlets.

The number of Past Year Lottery players to have experienced an issue at a retail store has declined significantly in W3.

Playership by day continues to show discrepancies between Past Month players and more Infrequent players. Playership levels are almost identical on weekends (Saturday and Sunday)

However, the largest gaps are Wednesday’s 43% (Past Month) v 31% (Not Past Month) and of course Tuesday’s 30% (Past Month) v 16% (Not Past Month).

Colorado Lottery should attempt to either increase the casual player’s spend on weekends, or encourage more players into stores on Tuesdays.

Page 11: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

1111

Key Findings (5) – Scratch Games

Monthly reported spend on Scratch Games is down from W2.

Having less money available to spend is the key driver behind decisions to spend less on Scratch Games.

About 1/3 of Scratch Game players state their reduction in spend is also because they don’t win enough.

Having spare money is the key driver in decisions to purchase Scratch Games, followed by seeing the scratch tickets and also feeling lucky.

Crossword is the most commonly played game, as well as the most preferred, followed by Wheel of Fortune.

Almost half of all $5 players like Crossword the best.

Page 12: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

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Key Findings (6) – The Lottery & Powerball Futures

Close to two out of three total Coloradoans indicated a likelihood to purchase lottery games in the future, similar to W2.

There is still a 5:1 positive to negative ratio for the Colorado Lottery.

In W3, 68% of respondents claim they would continue playing Powerball if it became a $2 game, down from 73% in W2.

30% would spend more than $10 on $2 Powerball in a typical month.

Just over half of Powerball players play PowerPlay in Colorado.

2/3 of PowerPlay players say they would continue to utilize the PowerPlay feature even if the Powerball game moves to $2 price.

If Powerball went to a $2 game, 52% of players would spend roughly the same on all games. 35% of these players would keep spending exactly the same, with 17% altering their levels by game.

However, 19% would increase spend overall, 10% would decrease spend overall.

Only 1 in 10 claim to play Powerball for the fun/entertainment value.

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Recommendations

1. Game Awareness, Ad Awareness and understanding of Mega Millions should be the #1 priority for the Colorado Lottery moving forward.

2. Wheel of Fortune appears to have been a success. Are there similar $5 games the Colorado Lottery could launch? Are there any plans to expand the range of the very popular Crosswords games?

3. There appears to be a strong case for an increased use of Social Media in Lottery communications, specifically to ensure enough of the youngest age group, 18-34 year olds, are aware of Colorado Lottery games, promotions and jackpot sizes.

4. However, this needs to be done correctly.

5. There still appears to be an opportunity in further educating Coloradoans about where the Lottery money proceeds are spent.

6. Days of the week.

Page 14: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

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Ad Awareness

Page 15: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

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Past Month CO Lottery Ad Awareness

63% of respondents recall viewing or hearing Colorado Lottery advertising within the past month.

This is similar to Ad awareness levels seen during W1 2011, significantly lower than W2.

May-10 W1 W2 W3

69%63%

68%63%

Q1. In the past month have you seen or heard any advertising for Colorado Lottery games?

(n = 596) (n = 601)

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level

(n = 604)

Page 16: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

1616

13%

22%

10%

5%

1%

3%

4%

0%

2%

0%

Games Advertised Past Month – Unaided Ad Awareness Total Market Scratch game Unaided Awareness is up significantly due to Wheel of

Fortune WOF represented 16% of the total 22% of Scratch Game awareness Both Powerball and Mega Millions Ad Awareness figures are down

significantly.

21%

12%

11%

10%

7%

6%

6%

3%

2%

2%

Q2. Please list which Colorado Lottery games you have seen advertised in the past month?

Powerball

Scratch games/Scratch tickets/Scratch Off

Lotto

Mega Millions

Crossword/Crossword Scratch/Puzzle

Colorado Lottery/Lottery

CASH 5

Millionaire Raffle/Raffle

MatchPlay

Bingo

21%

10%

11%

8%

1%

7%

7%

3%

5%

1%

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level

(n = 596)

W1(n = 601)

W2(n = 604)

W3

Page 17: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

1717

40%

48%

31%

27%

17%

12%

0%

1%

3%

Games Advertised Past Month – Total Ad AwarenessTotal Market Scratch Game Total Ad awareness has maintained from wave to wave,

while Ad awareness of other games, notably Powerball and MatchPlay has fallen.

Q2. Please list which Colorado Lottery games you have seen advertised in the past month?Q3. Which of the Colorado Lottery games have you seen or heard advertising for in the past month?

50%

49%

36%

35%

20%

13%

9%

7%

6%

Powerball

Scratch Games

Lotto

Mega Millions

Cash 5

MatchPlay

Raffle tickets

Crossword/Crossword Scratch/Puzzle

Colorado Lottery/Lottery

49%

47%

35%

30%

19%

22%

12%

1%

7%

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level

(n = 596)

W1

(n = 601)

W2(n = 604)

W3

Page 18: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

1818

Colorado Lottery, Social Media, Website, Loyalty Club &

“Sign & It’s Yours” Campaign

Page 19: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

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Social Media Websites Used

Over 70% of Coloradoans utilize social media frequently.

58% are Facebook users and Google Talk is up to 20% in W3.

Social Media users skew younger.

Q7. Which of the following Social Media websites do you actively use (or visit frequently)?

56%

27%

25%

13%

9%

9%

8%

6%

27%

Facebook

Yahoo

YouTube

MSN

My Space

Twitter

LinkedIn

Google-Talk

Do not followSocial Media

60%

30%

29%

14%

8%

12%

8%

8%

25%

(n = 596)

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level

58%

26%

26%

11%

4%

10%

13%

20%

29%

W1

(n = 601)

W2(n = 604)

W3

Page 20: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

2020

Social Media Access

The overwhelming majority of social media users utilize their PC to access these sites.

However, 38% access social media via their mobile phone.

*Base=Respondents who use social mediaQ7c. How do you access social media?

W3

95%

38%

9%

1%

PC (Desktop or Laptop)

Mobile Phone

Tablets (such as IPads)

Other

(n = 427*)

Page 21: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

2121

W3

Lottery Information Communication Preferences

Email and the Lottery website are the most popular communication channels for winning numbers and contest/promo information.

However, there is still limited interest in Lottery contests and promotions information on Facebook (8%).

Q7d. How do you prefer to receive winning numbers from the lottery?Q7e. How would you prefer to receive information about Lottery contests and promotions?

33%

29%

6%

5%

2%

2%

1%

1%

1%

1%

0%

0%

1%

19%

E-mailLottery Website

NewspaperNews/TV

FacebookIn store (store unspecified)

MailStore where bought ticket

Phone/callText message

TwitterRadioOther

None of the above

(n = 604)

48%

32%

2%

5%

8%

0%

2%

0%

0%

0%

1%

1%

1%

19%

Contest and Promotion Info(n = 604)

Winning Numbers Info

Page 22: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

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Colorado Lottery Website

The number of respondents who have visited the CO Lottery website is up significantly in Wave 3, from 47% to 53%!

More than one in three respondents has been on the CO Lottery website in the past month.

*Base=Respondents who have visited the CO website in the past monthQ8. Which of the following best describes when you last visited the Colorado Lottery website? Q9. Did you notice that the Colorado Lottery website has changed recently?

W1 W2 W3

54% 53% 48%

14% 15% 18%

15% 13% 18%

18% 19% 16%In the Past Week

In the Past Month

In the Past Year

I have never visited the Lottery website

Last Website Visit

(n = 596) (n = 601)

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level

(n = 604)

Page 23: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

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Rating of Colorado Lottery Website Design

The website redesign was widely viewed as an improvement with 61% of respondents who have seen it giving it a rating of 8 or higher on a scale of 1 to 10. Mean ratings are now up to 7.7/10.

W1 W2 W3

6% 3% 4%8% 9% 6%

12% 11% 12%

18% 20% 17%

21% 25% 29%

17%18% 15%

18% 12% 18% Rating 10 - Excellent Website

9

8

7

6

5

Rating 1 - 4 Poor Website

*Base=Respondents who have visited the CO websiteQ10. On a scale of 1 to 10, where 10 is an excellent website that offers you everything you need to know about the Colorado Lottery and its

games, and is easy to use, and 1 is a poorly designed website that is difficult to use, how would you rate the Colorado Lottery website?

Mean Rating: 7.6 7.5 7.7

Top 3 Box: 57% 55% 61%

(n = 276*) (n = 283*)

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level

(n = 315*)

Page 24: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

2424

Improvement for Colorado Lottery Website

61% of respondents either believe the website does not need improvement or can’t think of a way to improve.

However, 8% reported navigation issues.

Base=Respondents who have visited the CO websiteQ11w3. What can be done to improve the Colorado Lottery website?

W3

31%

8%

3%

3%

2%

2%

2%

2%

2%

1%

1%

1%

1%

14%

30%

(n = 315)*

Nothing, fine the way it isMake easier to navigate/find things/what I'm looking for

Improve speed/website takes too long to loadMake easier to find/better display of winning numbers

Clean up, make less clutteredOffer mobile app/better access on mobile access

Show winning numbers on home pageMake more user-friendly

More/better game info/game instructionsWebsite is not very appealing

Eliminate the sound effects/musical/noise iconsHave information on how money is spent/how helps Colorado

Offer more winning numbers/opportunities to winOther

Don't know/ can't think of anything

Page 25: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

2525

Loyalty Programs/Clubs

Almost half of Coloradoans participate in loyalty programs.

80% of Coloradoans have a Supermarket loyalty program

More than half have a Credit Card and/or Frequent Flyer programs.

*Base=Respondents who participate in loyalty programsQ5aw3 Do you know what a Loyalty, VIP, Affinity or Rewards Club is?Q5bw3 Loyalty, VIP, Affinity or Rewards Club programs are partnerships in which one company offers special rates or services to their

members when their services are used on a repeated basis. Allowing members to earn points, credits or in some cases miles. Do you actively participate in any such club or program?

Q5cw3 Which of the following loyalty programs do you participate in? Select all that apply

Aware of Loyalty Programs/Clubs

(n = 604)

W3

Yes42%No

58%

Participate in Loyalty Programs/Clubs

Yes48%

No52%

80%

57%

50%

40%

36%

26%

23%

19%

15%

15%

8%

2%

2%

Supermarket (Safeway, Albertson, King Soopers)

Credit card programs (like American Express, Discover Card)

Frequent Flyer Programs (Delta, US Air)

Hotel Programs (Marriott, Hilton)Restaurants

(Subway, Panera Bread)Department Stores (Macy's,

Dillard, Kohls)Casinos (Foxwoods, Cherokee)

Specialty Store (DSW, Toys R Us)

Food/Beverage (Coke)

Drug Stores (CVS, Walgreens)

Video Game Stores(Game Shop)

Online survey panels

Other

(n = 604)

(n = 287*)

Loyalty Programs Participate In

Page 26: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

2626

Colorado Lottery VIP Club Appeal

Over half of respondents rate the appeal of the VIP club as 8 or higher.

Over 70% of Past Month players rate the Colorado Lottery VIP club as a 8, 9 or 10 in terms of appeal. (8.1 mean score)

W3

10%2%

5%3%

12%

8%9%

13%

9%

31%

Rating 10 - Extremely Appealing

9

8

7

6

5

4

3

2

Rating 1 - Not At All Appealing

Q5dw3 The Colorado Lottery is thinking about launching a lottery VIP club where players can earn points for entering the serial numbers of their non-winning tickets. Earned points could then be redeemed for different types of prizes like home entertainment systems, gift cards from local Colorado restaurants, etc. On a scale of 1 to 10 where 1 is Not at all appealing and 10 is extremely appealing, how appealing is this type of program to you.

Total Past Month Players Lapsed playersMean Rating: 6.9 8.1 6.1Top 3 Box % 52% 71% 38%

(n = 604)

Page 27: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

2727

Awareness of Campaigns

85% of Coloradoans are unaware of the “Sign and It’s Yours” campaign.

Only 4% claim to recognize the campaign.

Q62. Just within the last month or so, do you remember seeing any images or hearing any of the …?

Yes4%

No85%

DK11%

(n = 604)

W3

Aware of Colorado Lottery's “Sign and It’s Yours”

Campaign

Page 28: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

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Overall Lottery Playership

Page 29: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

2929

(n = 604)

W3

58%54%

47%28%

23%11%

7%27%

CO Lottery Games - PlayershipTotal Market

Q13. Have you ever played any of [these] Colorado Lottery games?Q14. Which Colorado Lottery games have you ever played?

73% of respondents have played CO Lottery games ever in W3, down against W2.

Scratch Games and Powerball have the highest playership, with 28% of the population claiming to have ever played Mega Millions in W3 (up from W2).

Ever Played CO Lottery Games

Yes78%

No22%

DK1%

W1

(n = 596)

(n = 601)

W2

60%58%

52%32%

24%11%

8%23%

Scratch GamesPowerball

LottoMega Millions

Cash 5MatchPlay

Raffle ticketsNone

Games Ever Played

Yes75%No

25%

57%51%

45%24%22%

16%8%

25%

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level

Scratch GamesPowerball

LottoMega Millions

Cash 5MatchPlay

Raffle ticketsNone

Scratch GamesPowerball

LottoMega Millions

Cash 5MatchPlay

Raffle ticketsNone

Yes73%No

26%

DK1%

Page 30: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

3030

Games Played In …Total Market Past Month playership is down significantly in W3, down from 51% to

45%. This decline is seen across the board, although Scratch Games and MatchPlay have seen significant declines.

Q15. IN THE PAST YEAR, which of these Colorado Lottery games have you played? Q16. AND IN THE PAST MONTH, which of these Colorado Lottery games have you played?

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level

68%

48%

47%

37%

28%

17%

9%

5%

31%

66%

46%

43%

33%

21%

15%

12%

6%

34%

65%

45%

45%

34%

21%

14%

7%

6%

35%

Total Lottery Playership

Scratch Games

Powerball

Lotto

Mega Millions

Cash 5

MatchPlay

Raffle tickets

None

… Past Year … Past Month

54%

30%

33%

24%

18%

9%

5%

2%

46%

51%

31%

28%

22%

12%

8%

6%

3%

49%

45%

26%

27%

21%

13%

6%

4%

1%

55%

69% May-10

W1 (n = 596) W2 (n = 601) W3 (n = 604)

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3131

Outlets Where CO Lottery Tickets Purchased RegularlyTotal Market 47% of respondents purchase tickets at convenience stores regularly.

35% buy at grocery stores, up significantly in W3 (similar to W1).

More than half of Past Month players purchase at both outlets.

Q18. From which of the following outlets do you regularly purchase your Colorado Lottery tickets?

52%

35%

10%

2%

2%

79%

52%

17%

3%

3%

64%

49%

7%

0%

5%

Convenience Stores

Grocery

Liquor Stores

Restaurant/Bar

Other Outlets

51%

30%

9%

1%

2%

80%

48%

15%

1%

2%

67%

39%

10%

1%

6%

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level

Multiple answers accepted35% did not state an answer

47%

35%

9%

1%

2%

76%

57%

16%

3%

3%

64%

46%

7%

0%

5%

Lapsed Players

Past Month Players

Total Market

(n = 596)

W1

(n = 601)

W2(n = 604)

W3

Page 32: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

3232

Issues Faced at Lottery Retail Stores

The number of Past Year Lottery players to have experienced an issue at a retail store has declined significantly in W3.

The most common issues experienced are out-of-stock games (down significantly in W3), unknowledgeable staff or game terminals/dispensers not working.

*Base=Respondents who have played CO lottery games in the past yearQ19. Which, if any, of the following issues have you faced at Lottery Retail stores over the past year?

27%

18%

16%

13%

7%

4%

1%

51%

28%

16%

13%

10%

7%

2%

3%

51%

Scratch Games you wanted to play were unavailable

Store clerks/employee had little knowledge about games

Drawing Game terminals were not working

Scratch Game tickets in the dispensers were not visible

Lottery Game instruc-tions were unclear

Incorrect numbers were displayed at location

Other

None of the above

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level

22%

13%

16%

9%

6%

3%

2%

58%

(n = 409)

W1

(n = 393)

W2(n = 390)

W3

Page 33: Colorado Lottery Tracking Study Presentation October 2011 (W3) for Colorado Lottery by Simon Jaworski

3333

Likelihood to Purchase CO Games in the Future

Close to two out of three total Coloradoans indicated a likelihood to purchase lottery games in the future, similar to W2.

18% stated they might or might not purchase in the future.

5-point scale where ‘5’ means Definitely Purchase and ‘1’ means Definitely Not PurchaseQ23. How likely are you to purchase Colorado Lottery games in the future?

W1 W2 W3

8% 10% 8%9% 10% 11%

16%17% 18%

23% 22% 25%

45% 41% 38%Definitely Purchase

Probably Purchase

Might or Might Not Purchase

Probably Not Purchase

Definitely Not Purchase

Mean Rating: 3.9 3.8 3.7

Top 2 Box: 67% 63% 63%

(n = 596) (n = 601)

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level

(n = 604)

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Amount Spent on Scratch Games…

61% of all players spent $5 or less the last time they played Scratch Games.

Monthly reported spend is down for both the last time player’s played and their typical monthly spend.

*Base=Respondents who have played Scratch games in the past yearQ26. How much did you spend the last time you played Scratch games?Q27. Approximately how much do you spend on Scratch Games in a typical month?

… Last Time Played … In Typical Month

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level

W1 W2 W3

59%51%

61%

20%27%

22%

12% 15% 11%9% 7% 5%

$21+

$11 - $20

$6 - $10

$1 - $5

(n = 287*) (n = 279*)

Mean: $10 $11 $8

W1 W2 W3

41% 34%50%

17%19%

19%18%

17%

13%6%8%

8%6% 7%

3%11% 15%7%

50+

$31-$49

$21-$30

$11-$20

$6-$10

$1-$5

(n = 287*) (n = 279*)

Mean: $21 $24 $14

(n = 273*) (n = 173*)

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Why Spending Less on Scratch Games

Having less money available to spend is the key driver behind decisions to spend less on Scratch Games.

About 1/3 state it’s also because they don’t win enough.

*Base=Respondents who are spending less on Scratch GamesQ29. Why are you spending less on Scratch games? Is it because…?

75%

37%

16%

8%

4%

5%

3%

85%

39%

13%

6%

3%

2%

0%

78%

34%

10%

2%

6%

6%

0%

Have less money to spend

Felt didn’t win enough

Spending less on principle

Less interested in lottery games

Don’t enjoy it anymore

Other

None

REASONS FOR SPENDING LESS

W1 (n = 97*)W2 (n = 87*)W3 (n = 93*)

Note: Capital Letters indicate a significant difference across player groups at the 95% confidence levelLowercase Letters indicate a significant difference across player groups at the 90% confidence level

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Importance - Scratch Games Purchase – Why & What

Having spare money is the key driver in decisions to purchase Scratch Games, followed by seeing the scratch tickets and also feeling lucky.

* Base=Respondents who have played Scratch games in the past yearQ30. Please think about the last time you bought Scratch games. Below is a list of reasons that may or may not have been important to you

in deciding to buy these Scratch games. Please check whether each reason was important or not important in deciding to buy the Scratch games.

73%

61%

60%

28%

22%

10%

79%

62%

61%

28%

16%

11%

74%

63%

57%

23%

20%

10%

I had spare money

I saw the scratch

tickets

I felt lucky

I saw a lottery sign

I remembered the advertising

The sales clerk mentioned it

PAST YEAR SCRATCH PLAYERSWHY MAKE SCRATCH PURCHASE?

86%

75%

72%

70%

67%

63%

60%

55%

51%

46%

87%

78%

77%

68%

66%

64%

65%

60%

50%

45%

85%

70%

59%

66%

65%

53%

56%

58%

46%

45%

Price of the ticket

Number of chances to win

Having a bonus feature

Odds of winning

Top prize

Game you've won on before

Having many win-able

small prizes

Way it is played

Being new game

Graphics/general look of ticket

PAST YEAR SCRATCH PLAYERSWHAT DRIVES SCRATCH CHOICE?

W1 (n = 287*)W2 (n = 279*)W3 (n = 273*)

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$5 Game Playership / Preference

Crossword is the most commonly played game, as well as the most preferred, followed by Wheel of Fortune.

Almost half of all $5 players like Crossword the best.

Base=Respondents who have played $5 games in the past week or past monthQ25b. Which of the following $5.00 Scratch Game tickets have you ever played?Q25c. And which of the following $5.00 Scratch Game tickets do you like best?

W3

72%

50%

30%

30%

27%

22%

22%

20%

20%

1%

Crossword

Wheel of Fortune

Rageous Riches

Super Special Wild Number Bingo

Reel Winner

High Octane

Musical Notes

Fifty Large

Super Lemon Lime Crossword

Other

$5 Scratch Game Tickets Ever Played

(n = 74)*

47%

18%

8%

7%

5%

4%

4%

3%

3%

1%

Crossword

Wheel of Fortune

Rageous Riches

Super Special Wild Number Bingo

High Octane

Musical Notes

Reel Winner

Fifty Large

Super Lemon Lime Crossword

Other

$5 Scratch Game Tickets Like Best

(n = 74)*

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Multi-State Games&

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Amount Spent on Powerball & Mega Millions…

30% of all Powerball players typically spend more than $10 in a month.

Almost three quarters of players spent $5 or less the last time they played.

More frequent players are less motivated by increasing jackpot sizes

Weekly players are more motivated to play in $20-30 million jackpots

30% of Powerball players who are lapsed players (not played in the past month) wait until the Powerball jackpot hits $100m.

During the field period, the Mega Millions continued to increase, and probably drew in less frequent players.

*Base=Respondents who have played Powerball in the past yearQ34/47. How much did you spend the last time you played Powerball/Mega Millions?Q35/48. Approximately how much do you spend on Powerball/Mega Millions in a typical month?

Spend Last Time Played – Mean $ Spend In Typical Month - $

W1 W2 W3

$8 $7 $8

$7 $8 $4

W1 W2 W3

$15 $15 $12

$15 $20 $8

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19%9%9%

23%11%

20%9%

Jackpot Amount Spent

43% of players will spend more as jackpot size increases

38% of players who spend more when the jackpot size grows increase their spend when the jackpot hits $100 million +.

*Base=Respondents who have played Powerball in the past year** Base=Respondents who spend more on Powerball tickets as the jackpot growsQ38. Do you typically spend more on Powerball tickets as the jackpot grows?Q39. At what jackpot amount do you start to spend more on Powerball?

Spend More as Jackpot Grows

W1

(n = 279*)

(n = 257*)

W2

14%18%

7%23%

14%18%

7%

20-30 Million 31-50 Million 51-99 Million

100-149 Million 150+ Million

Size of Jackpot does not matter

Don't know

Amount at Which Spend More

Yes43%

No53%

DK4%

(n = 119**)

(n = 110**)

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level

Yes43%

No54%

DK3%

Mean = $99m

Mean = $82m

20-30 Million 31-50 Million 51-99 Million

100-149 Million 150+ Million

Size of Jackpot does not matter

Don't know

11%11%13%

23%15%18%

9%(n = 271*)

W3 Yes43%

No56%

DK1%

(n = 116**)

Mean = $104m

20-30 Million 31-50 Million 51-99 Million

100-149 Million 150+ Million

Size of Jackpot does not matter

Don't know

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Reasons for Playing POWERBALL

Almost half of Powerball players cite the “chance to win” as the key reason they play the game.

Only 1 in 10 claim to play for the fun/entertainment value.

9%

13%

30%

47%For the chance to win/I want to win

Big jackpot/prizes I could win

The money

For fun/entertainment/I like the game

Base=Respondents who have played POWERBALL in the past yearQ33a What is the key reason that you play POWERBALL?

(n = 271)*

W3

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Yes73%

No11%

Don't know16%

Potential Powerball Game Changes

In W3, 68% of respondents claim they would continue playing Powerball if it became a $2 game., down from 73% in W2.

30% would spend more than $10 on $2 Powerball in a typical month.

*Base=Respondents who have played Powerball in the past yearQ39b. If the current Powerball game were to make some improvements …, but the price point moved from a $1 game to a $2

game, would you still play Powerball?Q39e. How much would you spend on a $2 Powerball game in a typical month?

(n=257)*

Spend on $2 Powerball in a typical month?

Would you continue playing Powerball if games changes to $2 ticket?

40%

34%

16%11%

$21+

$11-$20

$6-$10

$1-$5

Mean: $13

W2

Yes68%

No15%

Don't know17%

(n=271)*

36%

34%

15%15% $21+

$11-$20

$6-$10

$1-$5

W3

Mean: $13

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Yes51%

No47%

Don't know2%

Yes53%No

44%

Don't know3%

Yes

No

Don’t Know

0% 20% 40% 60% 80% 100%

67%

16%

17%

PowerPlay Feature – Now and future

Just over half of Powerball players play PowerPlay in Colorado.

2/3 of PowerPlay players say they would continue to utilize the PowerPlay feature even if the Powerball game moves to $2 price.

*Base=Respondents who have played Powerball in the past year** Base=Respondents who play PowerPlay feature of PowerBallQ39a. Do you currently play the PowerPlay feature of Powerball for an extra $1…?Q39d. If the current Powerball game increased from a $1 game to a $2 jackpot game, would you still play PowerPlay…?

(n=136)**

Will you will play PowerPlay ifPowerBall increases to $2?

Do you currently play the PowerPlay feature of PowerBall?

(n=257)*

W2

Yes

No

Don’t Know

0% 20% 40% 60% 80% 100%

67%

19%

14%

(n=271)*

W3

(n=139)**

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4545

35%

14%

13%

8%

5%

4%

2%

18%

37%

19%

8%

6%

9%

5%

1%

14%

29%

18%

20%

10%

2%

4%

3%

12%

41%

6%

10%

9%

5%

3%

2%

25%

Impact of $2 Powerball on Total CO Lottery Spend

52% of players would spend roughly the same on all games with $2, Powerball. 35% of these players would keep spending exactly the same, with 17% altering their levels by game.

19% would increase spend overall, 10% would decrease spend overall.

(n=271)

Note: Letters indicate a significant difference across player groups at the 95% confidence level*Base=Respondents who have played Scratch games in the past week, month, yearQ39f. How do you think a $2 Powerball game would affect your spending on the range of Lottery games you currently play,

including Powerball?

(B)(n=78)*

(C)(n=89)*

(D)(n=101)*

Spend Same on PB and Other

Spend more on PB, keep other same

Spend more on PB, lower other

Spend less on PB, keep other same

Spend more on PB, more on other

Spend less on PB, more on other

Spend less on PB, lower other

Don't Know

Total Past Week Past Month Past Year

D

c

bC

D

BD

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35%

14%

13%

8%

5%

4%

2%

18%

35%

10%

12%

12%

5%

7%

8%

11%

Impact of $2 Powerball on Total CO Lottery Spend

There appears to be more confusion about future spending in W3 then there was in W2 with “Don’t know” response rising significantly

Net lower spending options fell from 20% in W2 to 10% in W3.

Note: Letters indicate a significant difference across player groups at the 95% confidence level*Base=Respondents who have played Scratch games in the past week, month, yearQ39f. How do you think a $2 Powerball game would affect your spending on the range of Lottery games you currently play,

including Powerball?

(n = 257)

W2

(n = 271)

W3

Spend Same on PB and Other

Spend more on PB, keep other same

Spend more on PB, lower other

Spend less on PB, keep other same

Spend more on PB, more on other

Spend less on PB, more on other

Spend less on PB, lower other

Don't Know

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Powerball and Mega Millions interaction

13% of those who play Powerball and Mega Millions will increase Mega Millions spend if jackpot is high, while maintaining Powerball spend.

Over half of all respondents who play Powerball and Mega Millions spend the same on both games regardless of the size of each game’s jackpot.

*Base=Respondents who have played Powerball and Mega Millions in the past yearQ50. When the Powerball jackpot is low, and Mega Millions jackpot is high, do you…?

W1 W2 W35% 7% 11%

55% 51%55%

28% 27%21%

12% 15% 13%Spend more on Mega Millions and keep your Powerball spend the same

Spend more on Mega Millions and lower your Powerball spend

Spend the same on both games, regardless of the jackpot size

Don't Know

(n = 152*) (n = 104*)

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level

(n = 112*)

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Reason for Not Buying Mega Millions Ticket

Awareness and understanding of Mega Millions should be a #1 priority for the Colorado Lottery moving forward as there is a great opportunity to increase player penetration and trial.

30% of non-players are not aware/familiar/have not thought about playing

13% of respondents in W3 “don’t have the money” to play Mega Millions, up significantly from W2

*Base=Respondents who have played Powerball and not played Mega Millions in the past yearQ51. In the PAST YEAR, you said you have played Colorado Lottery’s Powerball game, but not the Mega Millions game. Both games are

very similar, being National Jackpot drawing games, so what is the main reason you have not bought a Mega Millions ticket?

  W1 W2 W3

  (n = 127*) (n = 153*) (n = 159*)

Not aware of/Familiar with the game 27% 17% 19%Poor odds/hard to win 10% 9% 3%Prefer Powerball/Used to playing Powerball 7% 10% 10%Have not thought/Don't think about playing it 6% 4% 11%I don’t have the money 5% 6% 13%I don’t think I’ll ever win 2% 3% 1%Powerball has a higher payout 2% 4% 1%Just haven’t tried Mega Millions yet 2% 4% 3%Familiar with Powerball 2% 1% 3%I play/Prefer to play other Colorado lottery games (game unspecified) 2% 0% 3%

Don't like Mega Millions 1% 0% 1%Other 16% 10% 6%No reason 8% 7% 9%Don’t Know 11% 10% 9%

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level

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Mega Millions Promotion on Facebook

95% of Facebook users are unaware of Colorado Lottery Mega Millions promotions on the Facebook site.

The Colorado Lottery needs to drive players to their Facebook page.

Base=Respondents who use FacebookQ49w3 Do you follow Mega Millions promotions on Facebook?

(n = 350)*

Yes4%

No95%

Not Sure1%

W3

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Amount Spent on Lotto, Cash 5 and MatchPlay…

20% of LOTTO players spend more than $10 on the game in a typical month.

84% of players spent $5 or less the last time they played.

*Base=Respondents who have played LOTTO in the past yearQ41/44. How much did you spend the last time you played CASH 5/LOTTO tickets?Q42/45. Approximately how much do you spend on CASH 5/LOTTO in a typical month?

… Spend Last Time Played … Spend In Typical Month

$9 $9 $4 $17 $16 $8

$6 $5 $5 $18 $14 $13

Mean $ W1 W2 W3 Mean $ W1 W2 W3

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Games SatisfactionTop 2 Box % (5 point scale – 5 = Extremely Satisfied, 1 = Not At All Satisfied)

Scratch Games are consistently the No.1 game in terms of player satisfaction.

Satisfaction with Raffle has fallen dramatically from W1 being the highest rated game to the lowest in W2 and W3.

58%

51%

42%

42%

41%

40%

34%

26%

52%

41%

46%

39%

38%

37%

23%

52%

38%

43%

39%

36%

39%

Raffle Tickets

Scratch Games

Mega Millions

Cash 5

MatchPlay

Powerball

Lotto

Q59a. For the following games that you have played in the past year, how satisfied are you with each game you have played? Please use a scale from 1 to 5 where 5 is Extremely satisfied and 1 is Not at all satisfied.

W1 (n =596)W2 (n = 601)W3 (n = 604)

Note: Solid arrows indicate Wave 3 significantly higher/lower than Wave 2 at 95% confidence levelArrow outlines indicate Wave 3 significantly higher/lower than Wave 2 at 90% confidence level