Minnesota State Lottery Issues Marketing RFP

The Minnesota State Lottery develops sponsorship agreements throughout the year with organizations, events, and sports teams to create excitement for lottery players, to interest new players and increase the visibility of lottery games. The Lottery encourages and continually seeks new sponsorship agreements to help achieve current Lottery marketing goals.

Background:

Voters approved a constitutional amendment authorizing a lottery for Minnesota in November 1988; the measure passed with 57 percent of the vote. Lottery legislation in 1989 created the Minnesota State Lottery. Ticket sales began April 17, 1990, with the instant game Match Three. Sales the first day were $5 million, with $15 million sold the first week. Soon, after little more than two months of operation, the Lottery was able to pay back its startup loan of $8.5 million.

The Minnesota State Lottery launched its first two draw games on April 14, 1990, Daily 3 and Lotto*Minnesota (the local name given to Lotto*America). The first Minnesota-only lotto game, Gopher 5, was introduced in May 1991.

The Minnesota State Lottery is no stranger to new games and concepts. In 1999 it offered Golden Ticket Games, a $10 pouch that merged two separate scratch games, each pouch containing a guaranteed win of at least $3. G3 games – instant tickets playable through the retail terminals – debuted in 2003. 

The distribution of Lottery proceeds has changed over the years, but there has always been an emphasis on the environment and the state’s General Fund. Currently, the General Fund receives 60 percent of proceeds while the Environment and Natural Resources Trust Fund receives 40 percent. Unique among American lotteries, each ticket sold is subject to a 6.5 percent “in-lieu-of-sales tax,” which is split between the Game and Fish Fund, the Natural Resources Fund and General Fund.

The Minnesota Lottery also helps fund the state’s Department of Human Services compulsive gambling program. The amount of the annual appropriation of Lottery revenues is determined by the legislature.

Scope of Work:

A sponsorship proposal presented to the Lottery should meet the following three criteria:

1. Maximize Lottery Visibility – the event, sports or tie-in proposal should draw a large number of desired participants (typically 50,000 or more) whose demographics match the Lottery player profile. The Lottery is interested in effectively delivering its message of fun and entertainment to Minnesota adults whose demographics skew primarily towards those aged 25-64, with a household income of $35,000-$75,000, and having an educational background of some college or higher. The Lottery does not market to those under the age of 18, and family events with high levels of children present are generally not accepted. Attendance, on-site signage visibility and paid media exposure will be critical components that will be evaluated.

2. Enhance Lottery Image – the event, sports or tie-in proposal should inherently project the attitude that the Lottery is a fun and socially acceptable part of the community. The Lottery’s presence should fit well within the lineup of other sponsors. The Lottery is interested in creating opportunities whereby the sponsorship can translate into sales revenue, either via on-site sales from a Lottery booth, from sales-generating promotions with Lottery retailers or from joint programs with the sponsor’s media partners. 

3. Provide Promotional Extensions – the event, sports or tie-in proposal should offer exciting, value-added ways to interact with our players and have opportunities to motivate attendees, listeners and viewers to participate in and purchase Lottery games. The proposal must include proper staffing availability or other considerations to help the Lottery implement any appropriate promotional extension ideas. Proposals should address all pertinent elements of the sponsorship and how the Lottery criteria as stated above and on the attached Evaluation Form are to be met. 

This Solicitation does not obligate the state to award a contract or pursue a proposed sponsorship opportunity, and the state reserves the right to cancel the solicitation if it is considered to be in its best interest.

Section I, Sponsorship Requirements, is a list of criteria of extreme importance for the Lottery. All criteria must be given a passing mark or the prospective proposal will not be accepted. In some cases, a failure does not mean that the proposal would not merit a passing mark at some later time. For example, a strong proposal may initially fail because there is not adequate lead-time to maximize participation, but still could mean the proposal would be accepted the following year. Section II, Strategic Value of Participation, is a list of eleven factors that offer the most total sponsorship “value” for the Lottery. Each factor will be judged to have equal weight or value potential. The Lottery will conduct a thorough review of the prospective proposal and then determine a level of value for each factor. A prospective proposal must be given a score of at least 25 or greater to be considered adequate for possible negotiation. Proposals that do not receive such marks will not be considered further. Section III, Overall Assessment, captures the cumulative value assessment of the prospective proposal. If the proposal has passed both Sections I and II, the Lottery will commence negotiations on price and all sponsorship component deliverables.

Due Date:

Proposals are accepted on an ongoing basis 

Address:

Jason LaFrenz, Marketing Director Minnesota State Lottery 2645 Long Lake Road Roseville, MN 55113 Tel. (651) 635-8230 (888) 568-8379 ext. 230 (toll-free) Fax: (651) 297-7496 jason.lafrenz@mnlottery.com

Relevant agencies to consider include Magrino PR and Edelman pr.