A Second ChanceHow to Enhance your Scratch Product

Through Second-Chance Drawings

Presented By:

Todd Greco – Colorado Lottery Scratch Product Manager

Ken Sabey, Director of Sales, HostWorks, Inc.

Overview

Pre-Second Chance Drawings

Mail-in, then Internet

Internet Second Chance Drawings Evolve

Success

Taking a Second Chance

• 1983 – Players sent in non-winning scratch tickets for a chance to spin a wheel to win $1,000,000

• Second-chance wheel spin drawings end with the introduction of Lotto in 1989

• Mail-in second-chance drawings return in September 2003 with the game Trucks and Bucks

• First second-chance Internet drawing held in August 2004 as part of the scratch game Coral Cash

Taking a Second Look at Second Chance Drawings

• Internet second-chance drawings evolve into a Family of Games promotional opportunity– Games associated with a similarly themed group of

games are entered into one drawing for a chance to win four to six $500 prizes.

• First Family of Games Internet promotion drawing takes place in January 2005 associated with the Luck series of games– $1 Bee Lucky– $2 Triple Luck– $5 Lucky Bucks

Seconds Are Not Enough• To expand the popularity of Internet second-

chance drawings – a new twist is introduced with the Holiday family of games in 2006– All games associated with the family of games are

included in one drawing– One ticket from the entries will be selected as the

winner– Each price point is assigned a prize value

• $1 -- $1,000• $2 -- $2,000• $3 -- $3,000• $5 -- $5,000• $10 -- $10,000

Seconds Turn Into Minutes• The success of the second-chance Internet

promotional drawings lead to thoughts of ending mail-in drawings all together – As of January 2008 top-prize second-chance

drawings still rely solely on the mail-in entry option– Players spent nearly $300,000 in postage to enter

top-prize drawings each year– The Colorado Lottery had to process and store in

excess of a million tickets each year– Drawings took several hours to complete – Security of the drawings was the main concern of

switching from mail-in to Internet top-prize second-chance drawings

Silver Seconds• In association with the

Colorado Lottery’s 25th Anniversary, a $10 game called Silver Celebration was developed

– Top prize of $25,000

– Provided a good opportunity to test Internet top-prize second-chance drawing with a relatively small prize amount -- $25,000

Overview

Data Center Security

Server Security

Receiving HASH Data

Testing

Entry Process

Drawing Process

Secure Environment

Data center security• Manned 24/7• SAS70 Controlled Security Procedures• Locked cabinets• Security cameras• Colorado Department of Revenue personnel

background checks• Yearly security audits

Secure Environment

Server security• Follow the manufacturer’s security standards for

the operating system and development platform• Dedicated firewall• Server and database access via VPN tunnels only• Access controlled at user level• Secure Socket Layers (SSL) used to encrypt data• Robust suite of anti-virus tools• Pro-active monitoring of the servers

Drawing Setup

Receiving the HASH data• Data is transmitted via an encrypted SFTP protocol

(must have key to connect)• Access limited to authorized personnel• Encrypted files uploaded to web server, then

unencrypted with the key• HASH data uploaded into database for specific

game over encrypted connection• HASH = plug a string into it, outputs a 32

character string back

Drawing Setup

Testing• Developer does initial test with non-active VIRN

numbers to verify it works• Lottery personnel conduct second level of testing

prior to sign-off on the game• Test entries are tracked and stored separately

from actual entries

Entry Process

Entering the Ticket Number• Player enters 2CD section of Lottery’s web site• Enters VIRN number from non-winning scratch

ticket• System does one-way encryption to HASH

algorithm to determine validity• If non-valid, user is presented with immediate

feedback on reason• If valid, entry is stored in entry table• Numerous failed attempts result in entry form

access being temporarily disabled for player

Entry Process

Entry Submission• Upon successful submission, player is provided

option to enter another ticket number• MyLottery player has option to review their 2CD

history when logged in or to opt-in to a weekly email summary

• All drawing entrants will receive an email notification revealing the winner of the drawing.

Drawing Process

Acquiring Entrants• Authorized Lottery personnel login into

Admin section of web site• Second level of dual logins required to access

Drawing system• Drawing team chooses a 2CD game from list of

available games, system provides output of total number of entrants

• Automated security audit performed on data to scrub for possible duplicate entries

• Lottery security performs data integrity check

Drawing Process

Winner Selection• Drawing team runs the drawing on a separate

stand alone automatic draw machine• Drawing team logs back into drawing system and

inputs the winning entrant’s number; system outputs that entrant’s contact information

• Drawing team now downloads copy of the entrants database

• Winner is contacted by Lottery personnel• Winner has to physically present the scratch

game ticket

Summary

• Generate player interest and ticket sales

• Save money for both Lottery and players

• Security