Maine State Liquor and Lottery Commission
Minutes of Meeting
Wednesday, April 3, 2013
Hallowell, Maine

Call to Order:
Chairman Orland McPherson called the meeting to order at 10:12 AM
Roll Call
Commissioners in Attendance: Anne Vallee-Lachance and Larry Davis (via phone conference). Also in
attendance: Gerald Reid, Director; Timothy Poulin, Deputy Director; Johnnie Meehl, Manager of Liquor
Operations; Joe Collins and Rob Andreasen, Southern Wine & Spirits; Dolly Bois, M S Walker Inc.;
Chris Nichols and Jennifer Cartmell, NL Partners; Dean Williams and Michael Brandt, Maine Beverage
Company; Darrell Frecker, Scientific Games; Michelle Maclean, Capitol Strategies/GTech; Gary
Duncklee, Horizon; Ralph B. Pears, Discuss/RSVP; Bruce Andersen, Intralot; Garrett Corbin, Preti
Flaherty; Brendon Walsh, Deep Eddy Vodka; Darcy DaCosta, GTech; Jon Hildreth, Sidney Frank
Importing Co.; Barbara Campbell, Clerk for the State Liquor & Lottery Commission
Approval of Minutes:
Chairman McPherson moved that the minutes of the March 6, 2013 meeting be approved.
Commissioner Davis seconded and the motion passed unanimously.
Bureau Update:


Legislation
o LD 15 – An Act to Amend the Authorized Hours during which Liquor may be Sold and
Purchased
 The Committee has Tabled this LD at this time
o LD 216 – An Act to Extend the Hours for the Sale of Liquor on Sunday When St.
Patrick’s Day is on a Sunday
 The Committee voted OTP
 Signed by Governor as PL 2013 Chapter 2
o LD 239 – An Act to Improve the Return to the State on the Sale of Spirits and To Provide
a Source of Payment for Maine’s Hospital
 This LD makes changes to the business model for the sale of spirits in Maine.
 This bill has had a number of work sessions.
 Believe there is consensus to move our bill forward with pieces of LD 644.
o LD 607 – An Act to Make an Employee Who Sells Alcoholic Beverages or Tobacco to a
Minor Responsible for Paying the Fine
 A version of the LD has been before the Legislature before.
 The Administration will be opposing the bill.
 Public hearing this afternoon.
o LD 608 – An Act to Assist Maine Businesses Paying Taxes on Spirits
 A version of this LD was before the last legislature. They voted ONTP.
 The Administration was Neither For Nor Against.

 We worked with the bill sponsor to create a compromise to give relief to small
business for their revenue stream, but still require them to bring their product to
the warehouse.
 Committee voted OTPA
LD 644 – An Act to Strengthen the State’s Wholesale Liquor Business
 This LD retains the current way the spirits business is managed.
 See notes above for LD 239
LD 649 – An Act to Facilitate Consumer Taste Testings
 This LD make changes to the tasting laws to make it less burdensome to persons
who sell alcoholic beverages to consumers to conducts tastings at their retail
location.
 BABLO is very supportive of this bill.
 The Administration has not yet taken a position on this bill.
LD 704 – An Act to Improve the Availability of Coupons in the State of Maine
 This LD was brought forward by the spirits industry.
 This LD would allow coupons to be made available to consumer in a variety of
ways and not limited solely at the point of selection of the product in the store
 The Administration is likely to support this LD.
LD 766 – An Act to Define “Brand” under the Liquor Laws
 This LD adds a definition for brand.
 The Administration will monitor this LD.
LD 941 – An Act to Facilitate the Expansion of the State’ Liquor Distribution System
 This LD changes the number of agency store licenses from 8 to 12 in
municipalities with a population over 45,000 and keeps the number at 8 for
municipalities with a population between 20,000 and 45,000.
 BABLO is not sure this LD is the correct way to manage the creation of agency
stores.
 Question – are we at the maximum number to increase sales without
cannibalizing from other agency stores
 Administration has not taken a position on this LD yet.
LD 938 – An Act to Update the Laws Relating to the Tri-State Lotto and Payment of
Prizes to Minors
 This LD is our agency legislation
 This LD will allow Tri-State to create instant ticket games together.
 Currently, under law, there are 2 different thresholds – 1 capped at 50%
and the other not to exceed 60%.
 In order to offer instant ticket games at a variety of price points, this
change is necessary.
LD 1104 – An Act Relating to Sales of Lottery Tickets by Convenience Stores
 This LD is a draft concept bill.
 We have reached out to the bill sponsor.
LD 1318 - An Act To Clarify the Law Regarding Advertising Signs outside Premises
Licensed To Sell Alcohol
 This LD clarifies a provision limiting the number of advertising signs a person
licensed to sell liquor may have outside of the licensed premises by allowing one
sign in addition to the state agency liquor store sign.
 This LD was brought forward by the wine and beer distributors association.
 We just became aware of this LD, yesterday and not have analyzed its
intention/impact.


o

o

o

o

o

o

o

o

 Liquor Operations Report



Director’s Report:
Alcohol Awareness:
 Nothing new to report

New Product Listings:
Director Reid presented the new product listings for April 2013. Fifty (50) new products were proposed
this month. A motion was made by Commissioner Vallee-Lachance to approve the listings. Motion
seconded by Commissioner Davis and passed unanimously. (New product listings distributed and
attached to the minutes).
Label Changes:
Director Reid presented fourteen (14) label changes for April 2013. A motion was made by
Commissioner Vallee-Lachance to accept all changes. Motion seconded by Commissioner Davis and
passed unanimously. (Label changes attached to minutes)
Coupons and Rebates:
Director Reid presented 13 (13) rebates for April 2013. There are no instant coupons, only mail-in. All
rebates are standard in nature. A motion was made by Commissioner Vallee-Lachance to accept all
rebates. Motion seconded by Commissioner Davis and passed unanimously. (Rebates distributed and
attached to the minutes)
VAP Listings:
Director Reid presented three (3) new value added packs for April 2013. A motion was made by
Commissioner Vallee-Lachance to accept all items. Motion seconded by Commissioner Davis and
passed unanimously. (Promotional items attached to minutes)
Maine Beverage Company:
Dean Williams reviewed the financial income statement for March 2013. Total cases sold were 71,226;
total sales were 0.4%. Year-to-date cases sold were 4.7%; year-to-date sales were 5.9%. Gross profit
(pre-revenue sharing) is 39.4%.

Lottery Operations Report


Revenue update
o Lottery
 February profit was $(2,371,056) under budgeted projection. YTD, we are
$(2,067,497) below projected budgeted transfer.
 As we reported last month, February was a soft month, sales wise
 Most of this shortage is attributable to the $2,000,000 Powerball winner on
February 23rd.

 




 The prize was claimed and we paid it out in the following week
 The reimbursement from MUSL was not booked until March
 March profit figures are not available yet, but we expect March to be okay.
 Megabucks Plus continues its downward trend over last year. YTD, the game is
down 9.79%
 Powerball is up by 18.75%
 Overall, our draw game portfolio is up less than 1 percent at 0.97% YTD
o This change from last month is all related to the $3,000,000 less sales in Mega
Millions. Last year, at this time, the Mega Millions jackpot was $656 million
 Instant sales are down 1.53%.
o All price points, other than 3s and 5s are down. These price points are doing good
at the moment.
o We are implementing some changes to the instant games and these changes are
expected to help sales.
 Overall sales for both draw and instant games are down 0.84%,YTD
o Heritage
 February profit was $(6,579) under budgeted projection. YTD, we are $(84,585)
below projected budgeted transfer.
New Game Development
o Our new Tri-State game development for Gimme 5, is progressing
o Marketing campaign development is underway as well.
Promotions
o Consumer Coupons
 We mailed to approx. 100,000 households coupons for a free Powerball and a Free
instant ticket.
 Approximately a 19% redemption rate so far for both
 Instant ticket coupons redeemed to date: 19,646 (19.6%)
 Powerball coupons redeemed to date: 19,908 (18.9%)
o Retailer Incentive Program
 Retailers could earn an additional 5% bonus if they increased their sales over the
same quarter last year.
 399 retailers (35.43%) exceeded their sales goal and will receive a bonus.
 Total amount of bonuses earned is $101,125 (avg. $253 per store)
 Largest bonus received was Tom’s Mini Mart in Machias. They earned a bonus of
$2,200.
o Lucky for Life Anniversary
 For 2 weeks in March, buy a $8 ticket, get a chance to win $100 instantly
 830 winners over the 2 week period
 Sales increased by 75.79% during the promotion
 Since the promotion ended, sales have stayed above the sales the week before the
promotion
Marketing/Advertising
o Kwikies Branding
 Moved away from this branding 2 weeks ago.
o Working to create a new brand name for the instant tickets

Tri-State Report:

 Commissioner McPherson stated the next meeting for Tri-State will meet on Friday, April 12, 2013. The
“Gimme 5” game is scheduled to start May 12, 2013, with the first draw on May 15, 2013.

Scientific Games:
Darrell Frecker reported that Scientific Games is working to revise instant ticket releases and increase
sales. There are several compounded issues that led to why ticket sales were down in February. The
Hot Lotto Lotto changes and implantation of Gimme 5 are ready for May and they are working on the
Lucky for Life game changes for late September/October.
NL Partners:
Chris Nichols reported that the new Gimme 5 promotions, POS signs, floor mats, clings, etc… are out in
the stores. The new Powerball spots featuring “Rich” and his lobster boat are up and running. They are
also working on the instant ticket branding and Megabucks Plus game concepts.
Lottery RRP:
The Lottery RFP review has been completed and BABLO should be announcing the conditional contract
award soon.
Adjournment:
There will be a special Commission meeting on Wednesday, April 10, 2013 at 11:30 AM in Hallowell
for lottery rule making and approval of new games.
The next regular Commission meeting is scheduled for Wednesday, May 8, 2013, at 10:00 AM in
Hallowell. The June meeting is scheduled for Wednesday, June 5, 2013, at 10:00 AM in Hallowell.
There being no further business a motion was made by Chairman McPherson and seconded by
Commissioner Vallee-Lachance to adjourn. The motion carried unanimously and the meeting adjourned
at 11:22AM.

_________________________________
Orland McPherson, Chairman
Maine Liquor & Lottery Commission

_________________________________
Timothy R. Poulin, Deputy Director
Bureau of Alcoholic Beverages & Lottery Operations