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REQUEST FOR INFORMATION

MISSOURI LOTTERY COMMISSION

ISSUE DATE:  May 13, 2020

 

Description

 

• The Missouri Lottery Commission (“Lottery”) is seeking information from vendors to assist in the development of a Request for Proposals (“RFP”) for Pull-Tabs, dispensers and related services.
• THIS IS A REQUEST FOR INFORMATION (“RFI”) ONLY. This RFI is issued solely for information and planning purposes – it does not constitute a Request for Proposal (RFP) or a promise to issue an RFP in the future.  This request for information does not commit the Lottery to contract for any supply or service whatsoever.  Responders are advised that the Lottery will not pay for any information or administrative costs incurred in response to this RFI; all costs associated with responding to this RFI will be solely at the interested party’s expense.  Not responding to this RFI does not preclude participation in any future RFP, if any is issued. 
• The purpose of this RFI is to enhance the Lottery’s understanding of the Pull-Tab dispenser marketplace to help drive sales and increase profits to education.

 

 Background Information

 

• The Lottery is a Type III division of the State of Missouri, created to generate revenues for public education through the operation of a lottery pursuant to Article III, Section 39(b) of the Missouri Constitution and governed by Sections 313.200 through 313.351 of the Missouri Revised Statutes.
• The Missouri Lottery Commission is a constitutional body of the State of Missouri. It consists of a five-member commission that is appointed by the Governor with the advice and consent of the Missouri Senate. 
• The Lottery began selling tickets on January 20, 1986. Fiscal year 2019 sales exceeded $1.4 billion and the amount of profit transferred to education exceeded $323 million, the highest in Lottery history.  Over the past 34 years, the Lottery has sold $25 billion in product and transferred $6.7 billion in proceeds to the state and public education. 
• The Lottery’s retailer network consists of nearly 5,000 retailers and currently offers a variety of Scratchers games, Powerball, Mega Millions, Lotto, Show Me Cash, Pick 3, Pick 4, Lucky for Life and Club Keno.
• Pull-Tab dispensers are kiosks that dispense reels of preprinted paper Pull-Tabs with predetermined prizes. The individual preprinted tickets contain a barcode that displays the same printed game results on a video display. Dispensers produce vouchers for player prize validation by retailers. Dispensers, servers, and redemption units communicate with a centralized system.
• In addition to providing Pull-Tab dispensers, related servers, printers, preprinted Pull-Tab tickets, vouchers, software, redemption units, all necessary wiring, and a centralized system, the contractor is also responsible for game development and testing, marketing, retailer recruitment and field services. 
• There are currently 384 dispensers operating at 115 fraternal locations.
• In September 2020, the Lottery’s Pull-Tabs, dispensers and related services contract will expire. Net proceeds (amount played less amount won plus expired vouchers) per dispenser currently averages $119/day. Current revenue sharing percentages of net proceeds is thirty-eight percent (38%) contractor, forty-two percent (42%) Lottery, twenty percent (20%) fraternal organization. 

Presentations

 

• Interested vendors are asked to present their equipment and services and discuss their proposed solution with the Lottery Executive Director and members of the Lottery RFP Development Committee. Presentations should be limited to a maximum of ninety minutes, including time for questions.
• Presentations will be held June 23rd and 24th, 2020. All vendors that are interested in making a presentation should submit their company name and contact information to the Lottery contact below by close of business May 29th, 2020.

 

Contact and Other Information

 

• Interest and questions relating to this RFI must be directed to:

 

Judy Martin

Chief Financial Officer

Missouri Lottery

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