oregon state lottery® behavior & attitude tracking...

Level 2/Limited - Not for distribution/disclosure beyond the Oregon Lottery® staff and/or OSL-authorized vendors to whom this document was delivered.

Oregon State Lottery® Behavior & Attitude Tracking Study

Presentation of Findings November 2012 Wave

Prepared by:


2

Topics Covered


• Brief Overview of Objectives and Methodology

• Key Trends Related to:

– Attitudes Toward Oregon Lottery®

– Playership

– Advertising Awareness

– Oregon Wins / Responsible Gambling


3

Background and Objectives

• The Oregon Lottery® has conducted the Bi-Annual Behavior and Attitude Tracking Study with Oregonians since 2000.

• Study objectives include:

– Monitor trends in play behavior; – Measure advertising awareness; – Track attitudes toward the Lottery and gaming; – Understand trends in shopping and leisure habits; and, – Monitor technology trends, including Internet usage, PC / Internet

gaming and cell phone usage.


4

Methodology and Analytical Summary

• Survey conducted Nov 2 – Nov 27, 2012.

• 1,000 telephone interviews – 700 RDD-landline and 300 cell phone surveys.

• Quotas based on region, age and gender, per Census.

• Analyze trends across the following consumer segments:

– Current Player: has played an Oregon Lottery® game within the past 12 months

o Core Player: has played an Oregon Lottery® game within the past 12 months, and plays at least once per month

o Regular Player: has played an Oregon Lottery® game within the past 12 months, and plays less often than once per month

– Lapsed Player: has played an Oregon Lottery® game, but not within the past 12 months

– Non-Player: has never played an Oregon Lottery® game

– New Player: started playing their first Oregon Lottery® game within the past 12 months


Trends: Attitudes/Playership


6

Overall Opinion of Oregon Lottery®

•Although the level of positive opinion of the Oregon Lottery® remains above the annual Business Plan target of 60%, results this wave reflect a 5-point decline since Nov ‘11.

• As with the past several waves, those aged 18-34 are more likely to exhibit positive opinions about the Oregon Lottery® than older Oregonians.

NOTE: Don’t know responses are excluded.

12%

13%

11%

14%

12%

52%

53%

58%

52%

59%

16%

18%

18%

16%

15%

11%

10%

9%

10%

10%

Nov '12(n=1000)

May '12(n=1000)

Nov '11(n=1000)

May '11(n=1000)

May '10(n=1000)

Overall Opinion of Oregon Lottery®

Very Positive Somewhat Positive

Somewhat Negative Very Negative

Net Positive

64%

66%

69%

66%

70%


7

Core Players

25%

Regular Players

23% Lapsed Players

13%

Non-Players

39%

Playership Level

Nov ‘12 (n=1000)

Oregon Lottery® Playership

Current Playership:

48%

3% 4% 4% 3% 5% 6% 6% 5%

58% 60% 68%

63% 64% 63% 65% 61%

45% 48% 51% 48% 51% 47%

53% 48%

27% 28% 32% 30% 29% 26% 27% 25%

13% 12% 17% 15% 13% 15% 11% 13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Nov '08(n=1003)

May '09(n=1000)

Nov '09(n=1002)

May '10(n=1000)

May '11(n=1000)

Nov '11(n=1000)

May '12(n=1000)

Nov '12(n=1000)

Playership Trends

New to Oregon Lottery® Ever Played Current Players Core Players Lapsed Players. . . .

• Current playership reflects a 5-point decline since May ‘12, but is stable with Nov ‘11 results.

• The level of lapsed players remains stable at 13%.

• The incidence of core and new players among adult Oregonians is stable.

• Reported lifetime play is stable with Nov ‘11 levels, but four points lower than in May ‘12.


8

38%

29%

25%

18%

7%

6%

3%

2%

29%

10%

6%

Any Draw Game (net)

Powerball®

Oregon’s Megabucks℠

*Mega Millions®

Oregon Lottery Raffle℠

Win for Life℠

Pick 4℠

Lucky Lines℠

Any Scratch-its℠

Video Lottery℠

KenoNov '12 (n=1000)

Have Played in Past 12 Months

Current Playership of Oregon Lottery® Games

May '12 (n=1000)

Nov '11 (n=1000)

May '11 (n=1000)

May '10 (n=1000)

44% 34% 39% 37%

34% 28% 32% 32%

29% 25% 26% 26%

23% 12% 16% 8%

10% 9% 10% 6%

7% 7% 5% 6%

3% 2% 2% 2%

3% 2% 2% 3%

30% 30% 32% 30%

13% 11% 14% 15%

9% 7% 10% 10%

*Not asked prior to May '11, May ‘10 figure is derived from lifetime playership.

•Current playership of most draw games decreased significantly from May ‘12, but returned to levels observed in Nov ‘11. –Mega Millions®

maintained a six–point increase over Nov ‘11 results, although it experienced a 5-point decline since May ‘12.

•Current playership of Video Lottery, Scratch-its, and Keno remain stable with Nov ‘11 levels.

= Statistically significantly lower than May ‘12 results


9

23%

25%

26%

29%

28%

29%

26%

29%

28%

34%

46%

46%

43%

40%

34%

3%

4%

2%

3%

4%

Nov '12(n=475)

May '12(n=530)

Nov '11(n=471)

May '11(n=504)

May '10(n=477)

Play One or More Oregon Lottery Games® at Least…

Once or more per week Monthly, not weeklyLess than once per month Varies on jackpot

NOTE: PERCENTAGES ARE CALCULATED BASED ON THE MOST FREQUENT LEVEL OF PLAY REPORTED BY CURRENT OREGON LOTTERY® GAME PLAYERS

Overall Frequency of Play

•Frequency of play remains stable with May ‘12 results.

•This is the first in several waves of the research that weekly/monthly play has not declined.

52%

51%

55%

57%

62%


10

Attitudes / Playership

Issues to Address:

• Continue to monitor opinion levels.

• Consider the following changes:

– Increase media flighting.

– Resume Oregon Wins advertising that informs more broadly regarding how the Lottery Does Good Things.


Trends: Video LotterySM


12

Video LotterySM

• Current playership of Video Lottery℠ decreases to 10% this wave (n=1000; compared to 13% in May '12 and 11% in Nov ‘11). – Percent playing monthly (51% of current players) remains stable.

• Among non-players, 64% are not aware that the Oregon Lottery® offers line games, and only 19% understand how line games work. – Consistent with previous waves, most (85%) lapsed and non-players of

Video Lottery℠ are unaware of the minimum betting levels offered on Video Lottery℠ line games and 80% are unable to specify which values are available.

• A lack of convenient venues (27%) continues to be the number one factor for lapsed Video Lottery℠ play.


13


Current/Lapsed Playership – Video LotterySM

May ‘12 (n=1000)

Nov '11 (n=1000)

May '11 (n=1000)

44% 34% 39%

34% 28% 32%

29% 25% 26%

23% 12% 16%

30% 30% 32%

9% 7% 10%

13% 11% 14% 10%

6%

29%

18%

25%

29%

38%

Video Lottery

Keno

Scratch-its

Mega Millions

Oregon'sMegabucks

Powerball

Any DrawGame-Net

May '12 (n=1000)

Have Not Played in Past 12 Months

5%

7%

14%

4%

9%

11%

13%

Video Lottery

Keno

Scratch-its

Mega Millions

Oregon'sMegabucks

Powerball

No Oregon LotteryGames

May ‘12 (n=1000)

Nov '11 (n=1000)

May '11 (n=1000)

11% 15% 13%

11% 14% 12%

9% 10% 11%

5% 3% 3%

12% 15% 13%

6% 8% 8%

5% 6% 5%

• Current Video Lottery play decreases to 10% this wave.

• Level of lapsed Video Lottery play remains stable at 5%.


14

Awareness and Understanding of Oregon Lottery® Line Games

•Nearly two-thirds (64%) of Video Lottery℠ non-players are not aware that the Oregon Lottery® offers line games.

•General understanding of line games versus slot machines among Video Lottery℠ non-players has not changed: the majority knows what slot machines are (72%), but few know how line games work (19%).

NOTE: Questions not asked prior to May ‘11

36% 36% 39%

64% 65% 61%

Nov '12(n=841)

May '12(n=823)

Nov '11(n=830)

Awareness of Line Game Offerings Among Non-Players of Video

LotterySM

72% 75% 76%

28% 25% 24%

Nov '12(n=841)

May '12(n=823)

Nov '11(n=830)

Understanding of How Slot Machine Games Work

Yes No

19% 23% 28%

81% 77% 72%

Nov '12(n=841)

May '12(n=823)

Nov '11(n=830)

Understanding of How Line Games Work


15

Reasons for No Longer Playing Video Lottery℠

Reasons for No Longer Playing: Video Lottery℠

May/Nov '11 (n=105)

25%

11%

7%

13%

17%

10%

5%

6%

5%

1%

• “Don’t go places/not convenient” continues to be the top reason for lapsed Video Lottery℠ play (27%).

• Since 2011, the percentage of lapsed players citing financial constraints decreased five points.

NOTE: Responses with fewer than 2% of mentions excluded, Caution: Small base size

27%

15%

14%

13%

12%

10%

5%

4%

3%

2%

Don't go to places / Notconvenient

Not a good investment

Don't gamble / Gambleless

Never win/don't winenough

Less to spend/can't afford

Not interested

Odds aren'tgood enough

Only tried once / Gave asgift

Gambling is addictive /Causes problems

Too busyMay/Nov ‘12 (n=101)


16

Video LotterySM

Issues to Address:

• Decline in past-year play levels.

• Decline in level of play among more casual players.

• Very low awareness among non-players. – Advertising limited to on-premise. – Low game visibility. – Low familiarity with “line games” terminology. – Misperceptions regarding where and how Video LotterySM is

played.


Trends: Jackpot Games


18


Current/Lapsed Playership – Powerball® / Mega Millions®


• Powerball® continues to be the draw game with the highest incidence of current playership (29%).

• Decreases in current playership for Powerball®, Mega Millions®, and Megabucks℠ since May ’12 - but stable or improved over Nov ‘11.

– Prior to May ‘12 surveying: 3 consecutive weeks of $200M+ Mega Millions jackpots – up to $640M.

38%

29%

25%

18%

7%

6%

3%

2%

6%

Any Draw Game (net)

Powerball®


*Mega Millions®


Win for Life℠

Pick 4℠

Lucky Lines℠

KenoNov '12

(n=1000)

May '12 (n=1000)

Nov '11 (n=1000)

May '11 (n=1000)

44% 34% 39%

34% 28% 32%

29% 25% 26%

23% 12% 16%

10% 9% 10%

7% 7% 5%

3% 2% 2%

3% 2% 2%

9% 7% 10%

*Not asked prior to May '11, May ‘10 figure is derived from lifetime playership.

May ‘12 (n=1000)

Nov ‘11 (n=1000)

May ‘11 (n=1000)

11% 15% 13%

11% 14% 12%

9% 10% 11%

5% 3% 3%

4% 4% 3%

1% 2% 2%

2% 1% 1%

1% 1% 1%

6% 8% 8%

*Mega Millions® was newly introduced in May ‘10

13%

11%

9%

4%

2%

2%

2%

1%

7%

No Oregon Lottery®Games

Powerball®


*Mega Millions®

Win for Life℠

Pick 4℠


Lucky Lines℠

KenoNov '12

(n=1000)


19

Core Players (Monthly Play Among Current Players of Each Game)

Core Playership of Oregon Lottery® Games

*Mega Millions® not asked prior to May '10

• Core Powerball play is stable since last wave, but reflects a six-point decrease since Nov ’11 (+ 5.8% error margin).

• Core Mega Millions play has continued to decline since Nov ’11 (+ 7% error margin).

• Megabucks reflects the lowest level of core playership over the last four waves (+ 6% error margin).

44%

41%

40%

40%

36%

29%

25%

38%

Any Draw Game (net)(n=375)

Powerball®(n=289)

^Win for Life℠ (n=58)

Oregon’s Megabucks℠ (n=245) Mega Millions®

(n=176)^Pick 4℠

(n=28) ^Lucky Lines℠

(n=24) ^Keno(n=61)

May ‘12 Nov ‘11 May ‘11

47% 53% 52%

41% 47% 44%

46% 36% 49%

49% 48% 50%

41% 51% 50%

24% 30% 35%

23% 38% 32%

39% 38% 44% ^Caution: Small Base Size


20

Draw Games

Issues to Address:

• YOY sales decreases for Megabucks, Mega Millions, and Win For Life.

• Increased “jackpot-chasing.”

– Record jackpots can have a desensitizing effect (only interested in chance to win $200M…$80M doesn’t feel like enough). Most clearly observed for Mega Millions.

• Examine OSL’s draw game portfolio.

– Find ways to better differentiate games.

– Consider whether the portfolio is optimized by offering the current seven games – some with relatively low annual sales.

– Seek ways to ensure games remain profitable.


Trends: Keno


22

Keno

• Consistent with FY13 vs FY12 sales data, current, core, new, and lapsed Keno playership remain stable.

• Not frequenting venues where the game is offered (20%) and a low incidence of winning (17%) remain the main reasons for lapsed Keno play.

• Awareness of Keno To Go remains low at 10% (vs. 11% in May '12) and no current Keno players who have heard of Keno to Go have actually played it.


23


Current/Lapsed Playership – Keno

May ‘12 (n=1000)

Nov '11 (n=1000)

May '11 (n=1000)

44% 34% 39%

34% 28% 32%

29% 25% 26%

23% 12% 16%

30% 30% 32%

9% 7% 10%

13% 11% 14% 10%

6%

29%

18%

25%

29%

38%

Video Lottery

Keno

Scratch-its

Mega Millions

Oregon'sMegabucks

Powerball

Any DrawGame-Net

May '12 (n=1000)


5%

7%

14%

4%

9%

11%

13%

Video Lottery

Keno

Scratch-its

Mega Millions

Oregon'sMegabucks

Powerball

No Oregon LotteryGames

May ‘12 (n=1000)

Nov '11 (n=1000)

May '11 (n=1000)

11% 15% 13%

11% 14% 12%

9% 10% 11%

5% 3% 3%

12% 15% 13%

6% 8% 8%

5% 6% 5%

• Although reported Keno play in the past 12 months decreased three points since May ‘12, it remains stable with Nov ‘11 results (+ 3% error margin).


24

Awareness and Playership of Keno To Go

NOTE: Questions not asked prior to Nov ’11 Caution: Small Base Size

•Awareness of Keno To Go remains low at 10%.

•No current Keno players report playing the game this wave.

10%

11%

10%

89%

88%

87%

1%

2%

2%

Nov '12(n=1000)

May '12(n=1000)

Nov '11(n=1000)

Whether Heard of Keno to Go

Yes No Don't know


25

Keno

Issues to Address:

• Playership and sales are relatively static.

• Low awareness of Keno To Go.

• Although Keno is available in a wide variety retail locations – “not frequenting venues where the game is offered” remains the top mention as to why adult Oregonians don’t play.

– Address perceptions of Keno as an “older person’s game” that is only available in bars.


Trends: Ad Awareness


27

Ad Awareness

• Unaided awareness of most games remains stable.

• Awareness of OSL advertising is down significantly from last wave (74% vs 81% in May ’12; + 3% error margin).

• Awareness of Oregon Wins ads decreased to 47% (53% in May ’12; + 3% error margin). –Less advertising leading up to Nov ‘12 surveying. –Recall of economic development as a funding recipient also falls to 11%

from 24% in May ‘12.

• Responsible gambling ad recall also decreased to 30% of adult Oregonians (41% in May ’12; + 3% error margin). – Less radio advertising in the months leading up to Nov ‘12 surveying.


28

73% 76%

72%

81% 79%

76%

80%

79%

81%

74%

60%

70%

80%

90%

100%

Nov '07(n=1001)

May '08(n=1001)

Nov '08(n=1003)

May '09(n=1000)

Nov '09(n=1002)

May '10(n=1000)

May '11(n=1000)

Nov '11(n=1000)

May '12(n=1000)

Nov '12(n=1000)

Oregon Lottery® Advertising Awareness

Awareness of Oregon Lottery Advertising. . . .

Awareness of Oregon Lottery® Advertising

•Awareness of Oregon Lottery® advertising is down significantly from last wave to 74%. This is the lowest figure recorded since Nov ‘08.

•Reduced volume of Oregon Wins and Powerball®/Mega Millions® ads/visibility in the three months prior to, and during, fielding likely contributed to this decrease.


29

41%

39%

17%

7%

6%

6%

4%

35%

17%

13%

Powerball®Oregon’s

Megabucks℠ Mega Millions®

Win for Life℠

Pick 4℠ Oregon Lottery®

Raffle℠ Lucky Lines℠

All Scratch-its℠

KenoOregon

Video Lottery℠

Nov '12 (n=1000)

Unaided Awareness of Oregon Lottery® Games

• Unaided awareness of most games remains stable.

• A total of 60% of adult Oregonians are aware of at least one core game.

• However, Mega Millions® experiences a five-point decrease from the May ‘12 wave. – The current figure (17%)

is more in line with what has been reported in earlier waves.

– The record jackpot prior to the May ‘12 wave significantly increased game awareness.

Awareness of Oregon Lottery® Games May '12 (n=1000)

Nov '11 (n=1000)

May '11 (n=1000)

41% 38% 41%

41% 38% 41%

22% 15% 18%

8% 9% 8%

6% 7% 5%

6% 7% 5%

5% 4% 4%

35% 36% 38%

19% 16% 18%

14% 13% 14%


Trends: OWins/Responsible Gambling


31

52% 59%

48% 53% 47%

0

10

20

30

40

50

60

70

80

0%

10%

20%

30%

40%

50%

60%

70%

May '10(n=1000)

May '11(n=1000)

Nov '11(n=1000)

May '12(n=1000)

Nov '12(n=1000)

*Num

ber of Oregon W

ins Ad Weeks

(3 months prior and during fielding) %

See

n/He

ard

Ore

gon

Win

s Ads

Oregon Wins Ad Awareness

Oregon Wins Advertising Awareness

• Overall awareness of Oregon Wins advertising falls to 47% this wave, significantly lower than in May ‘12. – Decreased Oregon Wins advertising during, and three months prior to, fielding.

*Indicates the number of weeks an ad was run 3 months prior to, and during, fielding


32

Nov ‘12 (n=1000)

Any (net) 93% One 9% Two 18% Three 31% All Four 34%

None 7%

• L-TEAMS Outcome Measure: 83% of Oregonians 18+ can correctly identify at least two of the four recipients of Lottery funding.

• L-TEAMS Outcome Measure: 69% of Oregonians 18+ are aware that Lottery funds are allocated to problem gambling treatment programs.

• The recipient of Oregon Lottery® funds correctly identified most often is Public Education, followed by State Parks/Natural Resources, and Problem Gambling Treatment.

Where do Lottery Funds Go?

NOTE: Question not asked prior to Nov ‘12

78%

71%

69%

57%

50%

40%

18%

Public Education

State Parks & NaturalResources

Problem GamblingTreatment

EconomicDevelopment

State General Fund

Roads

College Athletics

Nov ‘12 (n=1000)

Recipients of Oregon Lottery® Funds – Aided Awareness Number of Recipients Correctly Identified

83%


33

Responsible Gambling Advertising Awareness & Recall

*Question not asked prior to May ‘12 **Question not asked prior to Nov ‘12

• 86% of Oregonians 18+ are aware that problem gambling treatment is available in Oregon.

• Responsible gambling ad recall falls eleven points to 30% this wave. – Less radio in the months leading up to Nov ‘12 surveying.

• Awareness of what the Oregon Lottery® offers with respect to problem gambling is highest for TV ads about gambling responsibly and setting limits on budget and play time; brochures regarding prevention and treatment, and newspaper ads.

Nov ‘12 (n=1000)

TV ads about responsible gambling and setting a budget and time limit 58%

Brochures about problem gambling prevention and treatment 36%

Newspaper ads about problem gambling 32% Problem Gambling Helpline information sticker on Video Lottery terminals 27%

Link to the problem gambling helpline site from the Oregon Lottery’s website 22%

Credits displayed as dollar amounts on Video Lottery terminals 22%

Online banner ads about problem gambling signs and treatment 18%

Clocks displayed on Video Lottery terminals 15%

Awareness of Oregon Lottery’s Problem Gambling Offerings**

30%

41%

70%

59%

Nov '12(n=1000)

May '12(n=1000)

Responsible Gambling Ad Recall*

Yes No


34

66%

44%

21%

35%

Setting a limit on moneyspent gambling and sticking

to it

Setting a limit on timespent gambling and sticking

to it

Gambling forentertainment, not forinvestment purposes

Don’t know Nov ‘12

(n=1000)

•The majority (78%) of respondents are not morally or philosophically opposed to gambling. Those who are opposed tend to be female and over age 55.

•The tactics for responsible gambling that adult Oregonians are most often able to mention are setting a gambling budget and setting a time limit.

Responsible Gambling

NOTE: Questions not asked prior to Nov ‘12

Yes 22%

No 78% Nov ‘12

(n=1000)

Morally or Philosophically Opposed to Gambling Ways to Gamble Responsibly


35

Ad Awareness / Education

Issues to Address:

• Messaging is having the intended effect – maintain:

– 83% of adult Oregonians can correctly identify at least two recipients of Lottery funds.

– Adult Oregonians most often mention setting a spending budget, following by setting a time limit, as ways to gamble responsibly.

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