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 Year # Retailers • Continued to optimize the number of retail 2012-2013 31 locations 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 5 th – 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 Pro Football 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 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% • Hold = Sales – winnings 2011-2012 27.13% • Expected a 5% hold with 2012-2013 20.74% full sports wagering 2013-2014 35.71% • Current hold – 16.88% 2014-2015 36.65% 2015-2016 27.85% 2016-2017 12.15% 2017-2018 36.54% 2018-2019 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 31.8% 2018-2019 $11.9M
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
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