SG-PA Lottery WAWA White Paper

PA LOTTERY
A WHITE PAPER BY
SCIENTIFIC GAMES
AND
WAWA
INNOVATION. RESULTS. REVENUE.
Driving performance for lottery
and regulated gaming worldwide
PA LOTTERY
AND
WAWA
A White Paper
Table of Contents
Table of Contents
Intro: Breaking barriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Background: Large chain challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Opportunity: Wawa ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Trial & Evaluation: Piloting solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Solutions: Custom problem solving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Crucial: Added function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Added security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Player convenience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Employee convenience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
Implementation: Putting the plan in place . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Results: A success story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Partnership: A business within a business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Sources . ................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
About Scientific Games . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3
Intro
Breaking barriers
There’s great news for lotteries seeking
to grow revenue by expanding their
retailer base, particularly among
non-traditional, big-chain retail
establishments. Barriers that
prevented lotteries from recruiting
these larger chains due to concerns
about slower or disrupted counter
sales are being removed. The same
good news exists for large retail
chains that want to grow same store
sales beyond present levels. Today,
lotteries and big-chain retailers can
cooperate more easily to launch
instant and draw games sales – with
full accounting compatibility and
without concerns about hindering the
speed or efficiency of sales at the
counter. The experience, resources
and flexibility to traverse these barriers
is essential to setting and achieving
big sales goals for growth in a mature
industry. The lottery industry’s first,
fully self-service lottery solution that
integrates the sale of instant and
draw-based lottery products, prize
validation and payment, accounting
procedures and security standards
into a single, one-stop shopping
experience for the customer is now a
reality.
4
Background
Large chain challenges
For the past several years, the U.S.
lottery industry has been challenged
to evolve its business model to better
accommodate some larger chain
retailers – for example, large chain
convenience stores and big box
merchandisers – that were hesitant to
embrace lottery sales at their checkout counters. These retailers firmly
believed that the slower transaction
speed of lottery game purchases
would hinder the efficiency of the
overall sales transaction. They sought
solutions to this challenge that were
less labor-intensive and that could be
smoothly integrated into their existing
business models. Because highvolume convenience store chains
have become more automated and
process-driven, they focus on
continuing to improve customer
service by simplifying store procedures
for managers and employees.
compatible with its accounting
procedures. The desired result is to
better integrate the lottery category
into the established business models
of a new class of potential retail
partners.
Lotteries have challenged their vendors
to develop technical solutions
consistent with these retailers’ business
models – solutions that could minimize,
or possibly eliminate the need for
lottery sales at the counter. The
solution would also need to meet the
retail chain’s reporting needs and be
5
Opportunity
Wawa
Wawa was the largest convenience
store chain in Pennsylvania NOT
selling lottery products. The company
was at the forefront challenging the
lottery industry to design and implement
a more efficient selling solution. The
Wawa chain built its brand, and
indeed its business model, around
6
meeting customer expectations for
speed and convenience. Among the
chain’s core values are principles such
as “Delight Customers,” “Embrace
Change” and a “Passion for Winning.”
These reflect Wawa’s insistence on
providing customers with the products
and conveniences they expect.
Trial & Evaluation
Piloting solutions
Some years back, Wawa tested the
sale of lottery games in their stores.
Although sales were above average for
their retail trade style, management
decided to discontinue the pilot due
to the drag effect of each product sale
on their front counter from both a cost
and service standpoint. All parties
decided to retrench and evaluate the
challenges that remained unresolved
from the trial and find new solutions.
to address many of the issues previously
raised by Wawa and other large chain
retailers.
The main solution for Wawa featured
the PlayCentralTM, Scientific Games'
interactive self-service terminal for
both instant and draw games.
By 2010, Wawa was interested in
revisiting lottery. They met with the
Pennsylvania Lottery and expressed
renewed interest in selling lottery
games. The chain wanted to remain a
leader in their category by continuing
to provide customers with
convenience products and services
they needed and expected — including
lottery products. Wawa sought to
learn what advances had been made
in the lottery industry since their
original market test.
By June that year, the Lottery
launched a new pilot to run in 21
Wawa locations. The Pennsylvania
Lottery, together with its full-service
supplier and business partner, Scientific
Games, introduced several solutions
7
Solutions
Custom problem solving
What was learned in the original trial
of lottery sales at Wawa was that a
premium had been placed on a
complete self-service solution that
didn’t require constant clerk involvement
or significant adjustments to existing
back-office systems or operations.
The PlayCentral would be the key to
meeting Wawa's needs.
A joint team of Wawa, Pennsylvania
Lottery and Scientific Games employees
was established to meet on a regular
basis to identify a list of tasks, develop
an in-store test − and ultimately
produce a roll-out plan for all 200+
Wawa locations in Pennsylvania. In the
spirit of true partnership, numerous
discussions took place between the
Lottery and Scientific Games together
with Wawa’s corporate and support
teams to better understand Wawa’s
unique business model and unique
requirements.
This information was used as a guide
to develop and deliver real solutions,
particularly through the PlayCentral
terminal. After gathering requirements
and initial development efforts, Scientific
Games worked alongside Wawa to test
the software changes and new add-on
8
features to verify that the outcome
ultimately delivered actually matched
or exceeded the proposed solution.
Before going live, Wawa wanted to
confirm that the added reporting
features provided their stores with the
correct information in the requested
formats. They also wanted to see how
effectively the added features met
employee and customer needs in the
stores.
Scientific Games then integrated
hardware, software technology and
ingenuity to deliver solutions to
enhance Scientific Games' PlayCentral
self-service terminal’s functionality.
Adjustments were made to best meet
the needs of the Lottery, its existing
retail partners and its new partner
Wawa to help increase the presence of
lottery products within their stores.
One of the most critical solutions
included:

FailSafeTM – The PlayCentral was
modified to allow players to validate
and cash their instant as well as
draw game tickets right at the
PlayCentral and receive “credits” in
the amount of prizes won using the
FailSafe bar code. This feature allows
players the choice to immediately
use the credits and play other
games, receive their credits in the
form of a lottery voucher that can
be played immediately or at a later
time, or present the voucher to a
store clerk for payment. As an
additional benefit, FailSafe allows
clerks to quickly cash instant tickets
without the need of entering a PIN
number on the terminal. This saves
clerks time and provides a more
efficient way to help customers with
their transactions.
9
Crucial
Added function
Along with a set of standard lottery
sales reports, many retail chain
accounts also require additional
information and functionality to help
integrate lottery product sales into
their store accounting procedures
and complete their back-office
processes. Several special reports and
functions were developed for the
Wawa program:


10
“No Sale” Profile−This is a new
business mode available on the
lottery terminal, allowing the
lottery to set a terminal into a “cash
only” (validation of vouchers) status
so sales are conducted strictly at the
PlayCentral. This mode streamlines
the accounting and reconciliation
with the retailer’s point of sale
system.
Deposit Functions for the
PlayCentral Terminal−These functions
give the retailer added information,
and records items such as when the
PlayCentral is opened for servicing.
The PlayCentral can print receipts
containing the store’s sales information
and provide a banking deposit for
an armored courier service. When
the “deposit” function is selected, a
pop-up confirmation appears which
will “clear” the shift meters. The most
recent Shift Report is automatically
generated, immediately after it prints
two deposit receipts.



PlayCentral Log−This process
sends retailer logs from each PlayCentral
to Wawa’s headquarters; it provides
details regarding the money
collected, inventory on hand, and
sales transactions for the unit. This
log also contains the “deposit” function
activity so the retailer’s back office at
headquarters can be reconciled with
the bank courier’s numbers for
money collected.
System Reports−These reports allow
the Lottery to review the PlayCentral
sales reports in a similar fashion as
the current WAVE™ lottery terminal
reports. This enables lottery personnel
to see the same level of detail at
headquarters that the retailer sees
in-store.
PlayCentral Sales Reports on the
WAVE Terminal−These reports allow a
retailer to request a PlayCentral sales
report directly from the WAVE terminal
without requiring direct access (at
the PlayCentral) to pull reports.

WAVE Transaction Report Logs−
Detailed logs were created to share
specific sales and transaction data
for Wawa’s back office use to reconcile
the data between the WAVE terminal
and Wawa’s in-store cash register.
For example, the report would
facilitate the ability to match a
cashed voucher on the WAVE terminal
with the same transaction on the
register.

Chain Reports−The Lottery has a
retailer website that allows the
chain/store headquarters to search
for data on sales and lottery product
inventory for any/all of their locations,
using a password-encrypted sign-on.
11
Added security
The necessity for heightened security
to prevent external and potential
employee theft, to control instant
ticket inventory, and to enable review
and research on any related issues
was crucial to make the solution fit
with the Wawa business model. The
following security features were
delivered to support their objectives:



12
Disable Machine Remotely−A key
fob allows the retailer to disable
PlayCentral sales remotely; this can
be used to stop suspected under-age
customers from using the machine
to purchase or cash lottery tickets.
Extra Cash Box−An additional box
allows the retailer to quickly pull
the current cash box from the
PlayCentral and bring it to a secure
area within the store and immediately
insert another cash box to allow the
machine to promptly return to a
selling status.
PlayCentral Keys−Separate keys for
reporting, opening the
PlayCentral and accessing the cash
drawer allow the store manager to
control access by employees.

Reports/Logs/Alerts−Detailed PlayCentral terminal event logs enable
Wawa headquarters to stay informed
about when any PlayCentral was
opened, when a cash box was
removed, when the instant ticket
inventory was loaded or removed,
and how much cash was inserted into
the machine (to help track actual
sales). The Wawa chain also receives
email alerts whenever a hard drive in
the PlayCentral has been replaced,
because local accounting records and
reporting are affected.
Player convenience
The main PlayCentral terminal screen
was updated to allow players easier
access to all available functionality:
instant ticket and draw game products,
coupon redemptions, help screens,
cash vouchers, as well as online
redemptions in exchange for
additional purchases of instant or
draw game tickets.
Other conveniences include FailSafe,
which allows players to redeem
bar-coded instant tickets directly at the
PlayCentral terminal. Once a player has
scratched an instant game and found it
to be a winner, the game ticket can be
scanned and redeemed at the PlayCentral
terminal up to a specified amount. In
lieu of cashing, the balance (winning
ticket value) can be credited to the
player’s account, or the player can
simply hold onto the ticket and redeem
it later. If the player has won a free
instant game, it will be dispensed
provided it is available in the PlayCentral
terminal; if not, the free game’s value
will be credited to the PlayCentral's
balance.
13
Employee convenience
Aside from being free to continue
their focus on satisfying customer’s
non-lottery purchases at the counter,
Wawa store personnel can now
access a deposit function at the
PlayCentral terminal. The PlayCentral
can print receipts containing the
store’s sales information and provide
a banking deposit for an armored
car courier service. If the clerk selects
the “deposit” function, a pop-up box
asks the clerk to confirm that a
deposit is being requested which
will “clear” the shift meters. A copy of
the most recent shift report is
automatically generated, immediately
14
following the printing of two deposit
receipts.
Weekly sales reports were measured
against a variety of benchmarks. Storeby-store stats enabled the Lottery and
Wawa to gauge progress against goals
and keep a pulse on the business
performance. These enhancements,
along with the Ambassador Program
designed to put Wawa employees and
customers at ease as they grew accustomed
to automated lottery sales, have facilitated
the remarkably smooth adaptation of
Pennsylvania Lottery products across
the Wawa chain.
Implementation
Putting the plan in place
In addition to enhancements designed
to improve the purchase experience,
better secure lottery products from
shrinkage, and allow Wawa headquarters
more control over the inventory and
accounting process, the Pennsylvania
Lottery and Scientific Games also
assisted with Wawa’s employee training.
A plan was devised for installing and
introducing Lottery machines, games
and enthusiasm at each store location.
The plan included:



to determine the lottery signage that
would work best at each location,
based on store size and customer
traffic flow. Some locations used
Scientific Games' 22” multi-function
Lottery InMotion advertising monitors
to significantly enhance player
awareness of lottery offerings and
draw jackpot updates.

Training & Quick-Help Resources−
Customized trainer-training classes,
documentation, reference guides and
automated on-terminal reference
material were created to facilitate the
retailer’s full, effective use of all the
available technology and tools.
Installation Plans−The Wawa
headquarters support team, along with
Pennsylvania Lottery and Scientific
Games employees, performed site
surveys to detail the logistics for
hardware, communications, and
power/data setup. This was planned
and executed in a way that upheld
store standards.
Signage−The Lottery and Scientific
Games worked with individual stores


Ambassador Program−During the
initial installation and for the first few
days afterward, both the Lottery and
Scientific Games employees were
on-site to help Wawa employees with
questions and helped customers get
acquainted with the new self-service
machines. The Ambassador Program
remains an ongoing component of
Wawa store support whenever extra
care is needed.
Project Planning−Throughout the
project, updated schedules and
planning meetings were held to keep
all participating parties informed
about upcoming deliverables and the
deployment schedule.
Play Slip Holders−The Lottery
created play slip holders that
mounted directly onto the PlayCentral
terminal in order to keep the store
15
footprint efficient in locations
where a lottery play station (an
add-on unit that holds brochures, play
slips, pencils, and other lottery
information) cannot be placed.

Call Center−Scientific Games'
National Response Center optimized
service in concert with Wawa and the
Lottery's call centers. This included
customized procedures, workflow
and electronic interfaces to streamline
service requests.
Together, these enhancements
facilitated a swift and smooth transition
for Wawa stores to begin selling the
lottery products their customers were
clamoring to purchase.
16
Results
A success story
Since the Wawa project began in May
2010, Wawa stores generated over $126
million in sales (CY2012) for the Lottery.
This translated into over $6.2 million in
retail commissions for Wawa stores and
approximately $41.7 million to benefit
older Pennsylvanians. After only a few
weeks, some Wawa stores sold almost
double the amount of products sold in
other PlayCentral locations in the state.
Lottery sales at Wawa continued to
increase as customers became more
aware of the lottery products being
offered in these locations, and more
comfortable with purchasing the
games through a self-service terminal.
Additionally, advertising and
promotional activity at the stores
increased sales. Both the Lottery and
Wawa were very pleased with the
results and worked for even greater
success.
Currently, Pennsylvania Lottery games are
sold in all 210+ Wawa locations across
Pennsylvania. The Wawa chain has averaged
approximately $1.53 million in weekly
sales through the self-service PlayCentral terminals. The PlayCentral’s sales
across the chain average about $7,354 per
week. Both instant and draw game ticket
sales are strong for Wawa stores,
recently showing a 28.3% draw games to
71.7% instant games split.
In fiscal year 2012, Wawa lottery sales
reached nearly $72 million with a
significant majority of 210+Wawa stores
averaging $13,000 or more in weekly
sales. Several Wawa stores appear regularly
in the Pennsylvania Lottery’s Top 10
Monthly Sales Performers.
WAWA TOTAL CY SALES RESULTS
$90M
$80M
$70M
$60M
$50M
$40M
$30M
$20M
$10M
$0
$
82,184,270
TOTAL CY2012
47,457,678
$
2,877,437
$
TOTAL CY2011
TOTAL CY2010
17
Partnership
A business within a business
By creating a self-service oriented
lottery solution that fit neatly in Wawa
stores, the retail chain has been able to
retain its leadership position in providing
exceptionally fast and convenient
service with quality products to its
customer base. Adapting the PlayCentral
terminal to Wawa’s business model by
adding functionality, special security
features, and increased reporting that
link them with existing back-office
systems enabled the chain to realize its
objective to meet customer demand.
Wawa also boosted same store sales
with only minimal training of
employees on how to manage and
service a new and largely passive
component to the business.
The Pennsylvania Lottery, Wawa stores
and Scientific Games had successfully
launched a pilot project that provided a
lottery industry first – a full, self-service
lottery solution that integrates instant
and draw game sales, prize validation
and payment, accounting procedures
and security standards.
The extension of lottery product sales
into Wawa stores was a huge undertaking;
it was one of the biggest the Lottery has
initiated to recruit a key or chain account.
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Both Wawa and the Lottery correctly
understood the great potential for a
reward for both parties. Seeing the benefits
unfold in profitable sales increases have
convinced them of what can be achieved
with thoughtful collaboration, clear
communication, and a dedicated,
experienced technology partner.
Through a strong commitment to
customer success, real partnership and
well-planned execution, Scientific Games’
lottery technology professionals enabled
both the Pennsylvania Lottery and Wawa
stores to score a big win. The Lottery
closed a sizeable gap in its retail network
that now greatly enhances its ability to
achieve its mission to fund programs for
Pennsylvania’s older citizens. Wawa stores
closed a competitive gap in meeting the
desires of customers who wanted to
purchase lottery products in-store in the
fast, convenient way they’ve come to
expect from Wawa.
To learn more about how the lottery
technology professionals at Scientific
Games can assist in achieving your
lottery’s mission with retailers, contact
your Scientific Games account executive.
Sources
Sources




Pennsylvania Lottery management and staff
Scientific Games corporate and field staff
Scientific Games Game Management System database
Pennsylvania Lottery sales database
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About Us
About Scientific Games
Scientific Games Corporation is a leading developer of technology-based
products and services and associated content for worldwide gaming and
lottery markets. The Company’s portfolio includes instant and draw-based
lottery games; electronic gaming machines and game content;
server-based lottery and gaming systems; sports betting technology;
loyalty and rewards programs; and social, mobile and interactive content
and services.
20
1500 Bluegrass Lakes Parkway
Alpharetta, GA 30004 USA
770.664.3700
12/2013