The Kansas Lottery is issuing this Request for Proposal (RFP) to obtain competitive proposals from qualified full service vendors who will work in conjunction with Lottery staff for advertising, digital, web, social media, public relations, assistance with sales concepts and assistance with market research services, to include a wide range of marketing services including, but not limited to, creative development and production of advertising and marketing materials, media planning, buying, post-buy analysis and reconciliation, creation and production of internet/web, digital and social media advertising, research and other related services more fully described in this RFP.
Kansas voters approved the formation of a lottery in November 1986. The Kansas Lottery is a self-funding and self-sustaining state agency. Tax dollars are not used to support the lottery operations. The Lottery Commission, a five-member board appointed by the Governor to staggered four-year terms, oversees the operation of the Kansas Lottery. The Kansas Lottery launched its first instant-scratch game on November 12, 1987. On a monthly basis, new instant games are shipped into the market. During the term of this agreement, the Lottery anticipates launching approximately 50 new instant games per year. In addition to instant scratch games, the lottery also operates a draw game portfolio that includes the following games: Powerball, Mega Millions, Lotto America, Super Kansas Cash, Lucky for Life, 2by2, Pick 3, Keno, and Racetrax.
Kansas is a member of the Multi-State Lottery Association (MUSL), headquartered in West Des Moines, Iowa. MUSL represents 44 states, plus the District of Columbia, U.S. Virgin Islands and Puerto Rico.
The Kansas Lottery Act requires a minimum of 45 percent of total revenue funds be returned to the public through the prize fund. In Fiscal Year 2018 the Lottery paid out approximately 57 percent in prizes. Since the Kansas Lottery’s startup in November 1987, through June 30, 2017, Lottery ticket sales have produced more than $1.8 billion in revenues transferred to the State of Kansas. In that same time period, more than $3.1 billion worth of prizes have been paid to players and Kansas Lottery retailers have earned more than $340 million in commissions. At this time, there are approximately 1,700 retail outlets statewide. The Lottery’s Fiscal Year 2018, which ended on June 30, 2018, produced $283 million in sales and $75.2 million transferred to the state. The State Gaming Revenues Fund received 28.7 percent of ticket sales; the cost of sales was 3.6 percent (which covers online vendor fees, telecommunications costs, and instant ticket printing); 5.8 percent was transferred to retailer earnings, and 4.9 percent covered administrative expenses. Transfers of up to $50 million are made from the Gaming Fund according to the following breakdown: 85 percent to the Economic Development Initiatives Fund, 10 percent to Correctional Facilities Building Fund, and 5 percent to Juvenile Detention Facilities Fund. Any receipts in excess of $50 million must be transferred to the State General Fund. The Kansas Legislature determines how lottery dollars are allocated.
In July 2018, Scientific Games successfully implemented a new, enterprise-wide gaming system for the Kansas Lottery. This was part of an overall plan to responsibly increase returns to the State of Kansas. Players and retailers are enjoying new retail point-of-sale terminals as well as a customizable digital point of sale display terminal. This new equipment offers the retailer new avenues for convenience and speed-of-service. The conversion also included an exciting new electronic virtual race game called Racetrax that offers the thrill of horseracing and the payout and prizes of a Keno game.
The Lottery contracts with Pollard Banknote, IGT and Scientific Games for the printing of scratch and pull-tab instant games, Scientific Games International for its central gaming system and data tracking, as well as a number of third-party vendors for interactive/electronic games. Pollard Banknote and Stellar Loyalty also provide the Lottery with its Loyalty Program “PlayOn” which launched in January 2017. As of September 2018, more than 130,000 players have registered for the PlayOn program entering more than 15,600,000 Kansas Lottery tickets to receive points for second chance drawings and prizes.
The Lottery sponsors and sells its products at a number of special events located across the state throughout the year. For example, the Lottery participates in the following events: Kansas State Fair in Hutchinson, Country Stampede in Manhattan, Rockfest in Kansas City, Kansas, as well as various trade shows, community events, and sporting events. The Lottery also maintains Sports Marketing partnerships with NASCAR i.e. Kansas Speedway in Kansas City, Kansas, Kansas City Royals, Sporting KC, Kansas City Chiefs, Kansas City T-Bones, IMG i.e. University of Kansas athletics, Learfield Sports i.e. Kansas State University athletics, Wichita State, Emporia State University, Ft. Hays State University, Pittsburgh State University and Washburn University.
Scope of Work:
The Kansas Lottery’s marketing goals are as follows:
- Maintain and build brand awareness for both instant and draw games across the portfolio.
- Maximize transfers to the state and minimize operating costs.
- Identify opportunities to expand our current player base and gameplay via advertising, social media, web traffic, and public relations.
- Improve and elevate the Lottery’s image and acceptability among Kansas adults 18 years and older, while making a conscious effort to try and increase brand awareness and interest with adults 18 to 40.
- Identify opportunities to expand the current lottery retailer network, as well as opportunities for the placement of electronic vending machines. Vending Machines were authorized by the 2018 Legislature.
- Research and identify opportunities to advertise and market the PlayOn Player’s Loyalty Program.
- Maximize engagement and player retention within the current loyalty program.
- Comply with all applicable statutes, laws and to be conscious of issues surrounding “Problem Gaming” and not market to vulnerable sections of the population.
Kansas Department of Administration
Procurement and Contracts
Proposal #: EVT0006141
Closing Date: November 27, 2018
900 SW Jackson Street, Suite 451-South
Topeka, KS 66612-1286
Agencies to consider for this assignment include APCO Worldwide and Ketchum PR.
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