Mike Elwood, Product Manager at Nebraska Lottery, presented “Creative Use of Free Tickets to Offset the Payout Expense.”The lottery has used unconventional prizing to foster replay. It has a mandatory return of at least 22% to the beneficiaries.
“Higher price point games are becoming more popular. By pushing up the payout, we are sneaking closer to that 22%,” said Elwood.
Free tickets aren’t counted against the prize fund. The lottery created combo mid-tier prizes that include cash and free tickets. This becomes the effective percentage.
“Free tickets as prizes has resulted in very successful games,” said Elwood. “No signs of being detrimental to any game. The 22% mandate remains in check. The combo prizes are now at every price point. All complaint calls have stopped.”