Video Lottery Terminal (VLT) Plans
You recently received the latest information about how Lottery plans to manage the VLT program as we shift from crisis response to a stable, long-term, and predictable approach.
The global pandemic led to a nearly $500 million loss of Lottery revenue over the past two years. Supply chain issues, retailer closures and access to capital all contributed to a disruption of our operating model – forcing Lottery to consider short- and long-term mitigation strategies. The most visible action we took was pausing the acceptance of new Video Lottery applications; essentially freezing our portfolio of retail locations and the number of terminals within them.
focusing on key areas
While the pause on new Video Lottery applications allowed Lottery to focus on supporting current retail locations, it’s not a long-term solution. As the largest slice of our revenue pie, Lottery must ensure the sustainability of our Video Lottery games.
Over the coming year, Lottery will focus on these key areas:
- Continue replacing terminals to ensure a good mix of options for players, to enable new play features, and to minimize down time from older models.
- Reopening retailers who self-suspended over the past year (contract abeyance)
- More actively managing the VLTs we have in the field; first by looking at the per-terminal average weekly dollars played minimum of $2,667 set in Provision 3.1(e) in the 2020 Retailer Administrative Rule 177-045-0030(1)(c).
- Developing a dedicated capital fund and replacement cycle for VLTs to add certainty for Lottery, retailers and our suppliers.
So what’s this mean to me?
In the short term, it means the Lottery will continue replacing obsolete terminals across the state, and we may remove one VLT from retailers well below the minimum revenue thresholds (single VLT retailers won’t be impacted). This move, combined with stepped up refurbishment efforts and new VLT purchases should allow us to balance immediate inventory needs, while preparing for the future.
Until we have more information on long-term VLT funding, availability and replacement cycles, the freeze on new location applications and net new terminals at existing locations will remain. Look for quarterly updates on our progress starting in the first quarter of our next fiscal year (July 2022).
Return Non-winning Tickets to Players & Destroy Winning Tickets
Did you know that your Lottery contract requires that all non-winning tickets be returned to the player?
Additionally, you should destroy winning tickets after paying the prize as outlined in the rule below: OAR 177-040-0050(3)(a)(C) and (D) state, A Lottery retailer authorized to sell traditional Lottery games is required to: (C) Destroy winning tickets after validation and payment of prize. (D) Return non-winning tickets to the player.
All non-winning Scratch-it tickets are eligible entries for a second chance top prize drawing! The Lottery’s mobile app has made it very quick and easy to enter non-winning Scratch-it tickets into the second chance drawings. So be sure to return all non-winning Scratch-it tickets to your players.
sign those tickets
Encourage players to sign the back of their Lottery ticket(s) right away. Tickets are considered a “bearer instrument.” That means the person who possesses the ticket is the winner. This is why we suggest that everyone signs the back of any Lottery ticket they buy as soon as they can! If a ticket is presented to us and the signature is fine (no white-out, scratched out, written over, etc.), the Lottery is obligated to pay that prize.
changes to non-sufficient fund (NSF) Rule
As you may know, Lottery does not count an NSF against a retailer when the NSF is caused by a bank error. (For example, if the bank deposited money in the wrong account.) Under the current rule, we asked that a retailer provide documentation explaining the bank error, but we did not provide a deadline to submit the documentation. Without that deadline, there were instances that caused confusion.
To help eliminate that confusion, effective August 1, 2022, the new NSF rule requires documentation of a bank error to be submitted within seven business days of the NSF. (Retailers can request an exception for unusual circumstances.)
helping players manage play
It’s important to you and your players that you provide them with ways to manage their play in a way that works for them.
One of the best ways to do that is to get familiar with the responsible gaming tools and resources available on the Oregon Lottery app and at OPGR.org so that you are ready to share information with customers when asked.
You’ll Love the Oregon Lottery App
Scan your tickets. Learn more about Lottery games. Enter Second Chance. All that and more, right from your phone!Download
Contact your Field Sales Representative or our Customer Service team at 1-800-766-6789