South Dakota Issues Marketing RFP

The Lottery’s contract with its current agency expires on June 30, 2020. State law requires that the Lottery’s major procurements go through a competitive process and be approved by the Lottery Commission. The purpose of this RFP is to invite competitive proposals from qualified agencies to provide advertising and marketing services for the Lottery.

The contract which results from this RFP will be for a period of five (5) years, commencing upon execution of a contract, with the option to extend for additional one (1) year terms for a total contract term not to exceed eight (8) years.

Background:

SCRATCH TICKETS

In November 1986, 60 percent of the electorate in a statewide referendum voted to amend the state constitution to allow for a state-operated Lottery. In 1987, legislators authorized the creation of the South Dakota Lottery, its commission and the sale of instant tickets.

On Sept. 30, 1987, six months after the legislation was signed into law, the Lottery sold its first instant ticket. The Lottery repaid its $1.5 million start-up loan plus interest to the state in three months.

VIDEO LOTTERY

Over the next two years, video lottery was studied intensely by legislative and private groups. In 1988, legislation was introduced to authorize video lottery, but the bill fell one vote short of the required two-thirds majority in the State Senate. In 1989, similar video lottery legislation was introduced on behalf of the Lottery Commission and this time passed.

On Oct. 16, 1989, South Dakota pioneered the first state video lottery in the nation. In 1992, an initiated measure to repeal video lottery appeared on the general election ballot. South Dakotans voted by a 63 percent to 37 percent margin to keep video lottery. Shortly after the election, a lawsuit was filed questioning the constitutionality of video lottery; on June 22, 1994, the South Dakota Supreme Court declared video lottery unconstitutional. In a special legislative session in July 1994, lawmakers passed a resolution to place a constitutional amendment on the general election ballot to reauthorize it. A court order to shut down video lottery was handed down on Aug. 12, 1994 but South Dakotans voted by a 53 percent to 47 percent margin to reauthorize it. On Nov. 22, 1994, video lottery was restarted. The issue came before voters two more times: Nov. 7, 2000 when a measure to outlaw video lottery failed by a 54 to 46 margin, and in November 2006 when an initiated measure to repeal video lottery was defeated 67 to 33 percent.

LOTTO

The South Dakota Lottery’s third product line lotto was authorized by legislators in 1990. Soon afterward, the South Dakota Lottery joined the Multi-State Lottery Association to offer Lotto*America. In November 1990, the first Lotto*America ticket was sold. The multi-million dollar game was replaced by Powerball in April 1992.

In April 1993, Dakota Cash became South Dakota’s very own cash lotto game.

The South Dakota Lottery joined with Montana and Idaho in February 1994 to offer Tri-West Lotto. Tri-West was changed to Wild Card in February 1998 and revised as Wild Card 2 in May 1999. The Wild Card 2 game ended in 2016.

Daily Millions was added to the lotto line-up in September 1996. It was replaced with Cash 4 Life in March 1998, Rolldown in September 2000, Hot Lotto in April 2002, and Lotto America in November 2017.

The South Dakota Lottery began offering Mega Millions in May 2010.

Lucky for Life became available in South Dakota in June 2017.

Scope of Work:

The Lottery wants a full-service agency which: A. Provides a full range of advertising and marketing services with responsive client service;

 B. Provides quality advertisements, marketing materials and service at a valuable price and in a timely manner;

 C. Gets the highest value possible in purchasing and placing media; and

 D. Will be creative and innovative, but mindful of the sensitive nature of the Lottery and its products.

The successful agency will be the Lottery’s principal advisor and provider of the services listed in Sections 4.3 and 4.4.

The successful agency must be capable of performing these services within short time frames, as the Lottery must react to situations such as lotto jackpot winners coming forward, the short time between lotto drawings in which to promote a jackpot, and the production of multiple point of sale items in as little as one month to accommodate ticket print schedules.

Due Date:

March 20th 2020

Address:

Wade LaRoche, Director of Advertising and Public Relations, South Dakota Lottery, 711 E. Wells Avenue, Pierre, South Dakota 57501. Phone: (605) 773-5791 E-mail: wade.laroche@state.sd.us

Relevant agencies worth considering include MWWPR and Zeno Group.

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