Attachment Z - MA Lottery Tracking Study 2019.pdf

M a s s a c h u s e t t s S t a t e L o t t e r y 2 0 1 9 A n n u a l T r a c k i n g S t u d y a n d P l a y e r A s s e s s m e n t

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1. Overview and Methodology

2. Key Findings

3. Perceptions of Institutions and the Economy

4. Play Frequency and Attributes

5. Segmentation Overview

6. Lottery Player Segments

7. Ad Recall

8. Casinos, Sports Betting and iLottery

Overview and Methodology

Between April 3 and 10, 2019, SocialSphere used Internet-based sampling to interview N=1,592 Massachusetts residents about their perceptions of the Massachusetts Lottery and related issues.

The survey is part of a series of tracking surveys that began in 2004 with telephone-based interviews of Massachusetts residents. In 2008, the survey switched to using an online-based sampling methodology. This survey is the fifteenth survey tracking survey conducted.

The survey benchmarks attitudes about general perceptions and attributes associated with playing the Massachusetts Lottery.

The main objectives of the survey are to:

• Track attributes associated with the Massachusetts State Lottery;

• Understand game spending patterns;

• Track advertising awareness;

• Understand the role that the MA Lottery plays in overall entertainment spending, and;

• Benchmark the use to technology, media consumption and social media adoption patterns.

Overview and Methodology

• A large part of the analysis presented in this presentation uses a “reported spend variable.” Players were asked about the frequency with which they have played the Lottery and how much they spend, on average in a given week. Slight changes were made this year to how these questions were asked; they resulted in a more accurate overall reported spend for the population as a whole. Overall, the imputed reported spend is $5.27B in the past year. While this number is close to the actual sales of the Massachusetts Lottery this spend overstates spending on non-instant games and understates spending on instant tickets.

• A slight change in methodology was implemented this year after being tested last year. Four percent of the population reported that they are morally opposed to the Lottery. They were not included in the sample framework. This has caused some small changes in tracking numbers.

• The overall sample size was increased this year as well, by approximately 50%. The increased sample size allows for more stable segments, which are a primary frame of analysis for this presentation. By using this increased sample size, segments approach 300 respondents in most cases instead of 200, which yields less variance and a lower margin of error.

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2. Key Findings

3. Perceptions of Institutions and the Economy

4. Play Frequency and Attributes

5. Segmentation Overview

6. Lottery Player Segments

Key Findings

1. For the first time in three years, Massachusetts residents do not report that their personal financial situation is getting better. For the past two years, over 55% of residents said that their personal financial situation was getting better. This year, only 30% said that, with 45% saying that it was staying the same. While this has not impacted most of their consumer spending, few people report they are spending more on leisure activities.

2. Favorability of the Massachusetts Lottery stands at 66%, tying the highest level on record. In general, most institutions saw improvement in their favorability. In particular, the Massachusetts Gaming Commission saw its favorability rebound from last year, attaining levels that were common from 2015 to 2017.

3. The factor analysis performed last year was performed once again this year, and it was used to segment players. The analysis produced largely consistent results, however some notable changes did occur. Most prominently, a few variables moved from one factor to another. The statement “it is fun to play jackpot games” moved from being weakly associated with management of the Lottery to being strongly associated with social aspects of the Lottery (talking to friends and colleagues, the Lottery is for people like me, etc.). Additionally, the statement “the Lottery offers me something to look forward to” moved into that factor as well. Both of these moves were driven largely by changes in the perceptions of Yearly players.

Key Findings

4. Fifteen percent of Massachusetts adults say that they are “very interested in playing the Massachusetts Lottery online,” while an additional 29% say that they are somewhat interested. Jackpot games and instant tickets top the list of games that players are most interested in playing online.

5. While 8% of adult residents report that they have already visited a casino in Massachusetts, an additional 21% report that they are very likely to do so within the next year. Additionally, 14% of adults report that they would be likely to bet on sports at least once a week it if was legal.

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2. Key Findings

3. Perceptions of Institutions and the Economy

4. Play Frequency and Attributes

5. Segmentation Overview

6. Lottery Player Segments

8. Casinos, Sports Betting, and iLottery

Favorability of Institutions: Massachusetts Lottery

0%

25%

50%

75%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

35% 27% 25% 25% 27% 28% 27% 27% 24% 27%

22%

55% 60% 60%

66% 63% 63% 64% 66% 65% 64% 66%

Favorable Unfavorable

Do you have a very favorable, somewhat favorable, somewhat unfavorable or very unfavorable opinion of:

The Massachusetts State Lottery

25%

50%

75%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

40% 32% 32% 32% 31% 32%

27% 22% 21%

26% 21%

47% 51% 48% 47% 48% 49%

53% 55% 56% 52% 54%

Favorable Unfavorable

Favorability of Institutions: Massachusetts Treasurer

Do you have a very favorable, somewhat favorable, somewhat unfavorable or very

The Massachusetts Treasurer

25%

50%

75%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

53% 48%

41% 42% 38% 41%

35% 30% 31% 33%

27%

40% 45%

51% 49% 54% 52% 49%

62% 62% 59% 65%

Favorable Unfavorable

Favorability of Institutions: Massachusetts Government

Do you have a very favorable, somewhat favorable, somewhat unfavorable or very

The Massachusetts Government

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25%

50%

75%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

40% 32% 32% 32% 31% 32%

27% 26% 31%

37% 28%

47% 51% 48% 47% 48% 49%

53% 55% 57% 51%

57%

Favorable Unfavorable

Favorability of Institutions: State Legislature

Do you have a very favorable, somewhat favorable, somewhat unfavorable or very

The Massachusetts State Legislature

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25%

50%

75%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

33% 29% 28%

37%

25%

49% 49% 48% 40%

50%

Favorable Unfavorable

Favorability of Institutions: Gaming Commission

Do you have a very favorable, somewhat favorable, somewhat unfavorable or very

The Massachusetts State Gaming Commission

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25%

50%

75%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

55%

36%

Favorable Unfavorable

Favorability of Institutions: Federal Government

Do you have a very favorable, somewhat favorable, somewhat unfavorable or very

Federal Government

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Perceptions of the Economy: Personal Finances

Compared to the last few years, how would you rate you and your family’s personal financial situation:

0%

25%

50%

75%

Getting Better Getting Worse Same

45%

26% 30%

21% 17%

62%

24%22%

55%

2017 2018 2019

Confidential �16

2. Key Findings

3. Perceptions of Institutions and the Economy

4. Play Frequency and Attributes

5. Segmentation Overview

6. Lottery Player Segments

8. Casinos, Sports Betting, and iLottery

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Profile: Play Frequency

2019 Tracked 2019 New

0% 25% 50% 75% 100%

10% 14%

15% 15% 15%

18% 20%

15% 18% 17%

15% 14% 14%

17% 16%

19% 17%

14% 18%

17% 20%

18% 18%

16% 17%

21%

34% 33%

31% 35%

33% 27%

26% 28%

27% 28%

31% 32%

31%

18% 17%

16% 15%

17% 18% 17%

18% 17% 17%

16% 16%

15%

11% 10% 9%

9% 10%

19% 20%

19% 20% 20%

22% 21%

19%

10% 10% 10% 9% 11%

Weekly+ Weekly Players Monthly Players Yearly Players Lapsed Players Non-Players

Thinking of the Massachusetts Lottery which includes… how often do you play?

Record PB

4% of adults (and 1/3 of non-players) report that they are morally opposed to gambling.

Record PB

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Play Locations: Frequency by Location How often do you play the lottery at each of the following types of places?

Among Lapsed+ Players (n=1,432)

Convenience Stores

Gas Stations

Grocery Stores

Package/Liquor

Restaurants/Bars

Vending/Kiosks

0% 25% 50% 75% 100%

63%

68%

48%

38%

31%

15%

21%

18%

23%

25%

21%

15%

12%

9%

18%

23%

26%

28%

3%

3%

9%

9%

15%

27%

2%

2%

2%

5%

7%

14%

Always Most of the time Some of the time Rarely Never

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How often do you play the lottery at each of the following types of places?

NET: Always/Most of the Time Among Lapsed+ Players (n=1,432)

0%

25%

50%

75%

Gas Stations C-Stores Grocery Package/Liquor Restaurant/Bar Vending Machines/Kiosks

2%3% 6%

10%

21%

12%

2%2% 6%

13%

39%

20%

4%6% 12%

17%

45%

29%

6%6%

17%16%

51%

24%

11% 17%

28% 23%

61%

35%

Weekly+ Weekly Monthly Yearly Lapsed

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How often do you play the lottery at each of the following types of places?

Gas Stations Among Lapsed+ Players (n=1,432)

Weekly+ (n=205)

Weekly (n=204)

Monthly (n=324)

Yearly (n=503)

Lapsed (n=196)

0% 25% 50% 75% 100%

54%

35%

17%

20%

13%

24%

21%

23%

21%

16%

11%

24%

31%

35%

36%

8%

13%

23%

15%

20%

4%

6%

6%

9%

15%

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How often do you play the lottery at each of the following types of places?

Convenience Stores Among Lapsed+ Players (n=1,432)

Weekly+ (n=205)

Weekly (n=204)

Monthly (n=324)

Yearly (n=503)

Lapsed (n=196)

0% 25% 50% 75% 100%

34%

17%

6%

9%

3%

26%

18%

9%

10%

6%

19%

26%

39%

30%

31%

14%

26%

33%

37%

33%

8%

13%

13%

14%

28%

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How often do you play the lottery at each of the following types of places?

Grocery Stores Among Lapsed+ Players (n=1,432)

Weekly+ (n=205)

Weekly (n=204)

Monthly (n=324)

Yearly (n=503)

Lapsed (n=196)

0% 25% 50% 75% 100%

54%

48%

30%

21%

11%

24%

22%

29%

28%

25%

13%

17%

24%

35%

42%

4%

8%

13%

11%

16%

6%

5%

4%

5%

7%

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How often do you play the lottery at each of the following types of places?

Package/Liquor Stores Among Lapsed+ Players (n=1,432)

Weekly+ (n=205)

Weekly (n=204)

Monthly (n=324)

Yearly (n=503)

Lapsed (n=196)

0% 25% 50% 75% 100%

68%

58%

37%

33%

20%

19%

21%

29%

25%

26%

7%

15%

23%

26%

26%

6%

5%

9%

14%

18%

1%

3%

2%

10%

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How often do you play the lottery at each of the following types of places?

Restaurants or Bars Among Lapsed+ Players (n=1,432)

Weekly+ (n=205)

Weekly (n=204)

Monthly (n=324)

Yearly (n=503)

Lapsed (n=196)

0% 25% 50% 75% 100%

83%

76%

60%

54%

44%

10%

16%

23%

24%

23%

4%

6%

12%

16%

16%

2%

1%

4%

4%

11%

1%

1%

1%

2%

6%

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How often do you play the lottery at each of the following types of places?

Vending Machine/Kiosks Among Lapsed+ Players (n=1,432)

Weekly+ (n=205)

Weekly (n=204)

Monthly (n=324)

Yearly (n=503)

Lapsed (n=196)

0% 25% 50% 75% 100%

78%

73%

53%

49%

34%

15%

17%

26%

26%

32%

5%

8%

16%

19%

23%

1%

2%

3%

5%

5%

1%

0%

2%

1%

6%

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Attributes: Fun and Easy

For each statement, please rate whether you agree or disagree with the statements, 0 being strongly disagree and 10 being strongly agree. The Lottery is…

NET: Agree (8-10) - Disagree (0-2)

-60%

0%

60%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

-15% -9%

0% -3% -5% -4% -11%

-2% -5% -8% -2%-4%

10% 16%

5% 5% 6% 0%

9% 6% 4% 16%

15% 14% 20% 20% 19% 21%

13% 23% 20% 22% 23%

46% 48% 51% 44% 47% 42%

37% 41% 39% 38% 47%

Easy to play Fun to play scratch tickets Fun Fun to play jackpot games

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Attributes: Good Gift and Sold More Places

For each statement, please rate whether you agree or disagree with the statements, 0 being strongly disagree and 10 being strongly agree. The Lottery is…

NET: Agree (8-10) - Disagree (0-2)

-60%

0%

60%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

-55% -44%

-37% -45% -41%

-35% -37% -29%

-35% -40% -44%

8% 4% 11%

3% 8% 11% 8% 11% 8% 11% 13%

Makes a good gift Sold more places

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Attributes: Funding and Innovation

For each statement, please rate whether you agree or disagree with the statements, 0 being strongly disagree and 10 being strongly agree. The Lottery is…

NET: Agree (8-10) - Disagree (0-2)

-60%

0%

60%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

-25% -13%

-7% -13% -15% -12% -12% -9% -9% -12% -8%

8% 17% 21%

16% 22%

17% 13% 15% 9% 7%

16%

Provides valuable funding for cities/towns Innovative

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Attributes: Management of the Lottery

For each statement, please rate whether you agree or disagree with the statements, 0 being strongly disagree and 10 being strongly agree. The Lottery is…

NET: Agree (8-10) - Disagree (0-2)

-60%

0%

60%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

-12%

3% 9% 5%

-3% 1% -3% 2% 0% 5% 2%

-15%

3% 13%

4% 3% 5% 6% 9% 5% 6% 11%

Well-managed Honest/Trustworthy

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Attributes: Other Attributes For each statement, please rate whether you agree or disagree with the statements, 0 being strongly disagree and 10 being strongly agree. The Lottery is…

Talk to Friends/Colleagues

Improves Quality of Life

For People Like Me

Offers Something to Look Forward To

0% 25% 50% 75% 100%

18%

19%

17%

21%

48%

48%

55%

53%

35%

33%

28%

26%

0-2 3-7 8-10

NET: Agree (8-10)

- Disagree (0-2)

-5%

-11%

-13%

-17%

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Attributes: Instant Tickets

On a scale of 0 to 10, where 0 means very bad and 10 means very good, please rate the Massachusetts Lottery on the following factors:

The quality and design of Massachusetts Lottery instant games (scratch tickets)

0% 25% 50% 75% 100%

32% 34% 33%

34% 33%

54% 57% 59%

58% 57%

14% 9%

8% 8% 10%

0% 25% 50% 75% 100%

20% 22%

23% 24%

20%

60% 58%

60% 60%

61%

20% 20%

17% 16%

19%

Bad

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Attributes: In-Store Experience

On a scale of 0 to 10, where 0 means very bad and 10 means very good, please rate the Massachusetts Lottery on the following factors:

The experience of buying Massachusetts Lottery products at a retailer

0% 25% 50% 75% 100%

25% 25% 25%

26% 26%

58% 61%

59% 59% 59%

17% 14%

16% 15% 15%

0% 25% 50% 75% 100%

20% 20%

21% 22% 21%

62% 60%

63% 62%

61%

18% 20%

16% 16%

18%

Bad (0-2) Average (3-7) Good (8-10)

The quality of in-store ads, signs and promotions for the Massachusetts Lottery

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Attributes: Ad Quality

On a scale of 0 to 10, where 0 means very bad and 10 means very good, please rate the Massachusetts Lottery on the following factors:

The quality of TV and radio ads for the Massachusetts Lottery

0% 25% 50% 75% 100%

17%

17%

18%

17%

59%

62%

63%

60%

24%

21%

19%

23%

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Attributes: Ticket Assortment

On a scale of 0 to 10, where 0 means very bad and 10 means very good, please rate the Massachusetts Lottery on the following factors:

The assortment of instant tickets offered

0% 25% 50% 75% 100%

42%46%12%

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2. Key Findings

3. Perceptions of Institutions and the Economy

4. Play Frequency and Attributes

5. Segmentation Overview

6. Lottery Player Segments

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Factor Analysis: Spending and Lottery Attitudes Factor Analysis is meant to help understand how various attitudes impact Lottery play and Lottery spending. It seeks to group variables into categories or factors by analyzing which question responses are similar and predictive of other question responses.

Once the factors are computed, they are then used to explain “variance” in another variable, in this case spending. The numbers on the chart below represent how much variance in reported spending is accounted for by a certain category of questions.

For example, questions about “management and doing good” account for 24% of variance in spending.

A similar factor analysis was done last year, and only two variables moved from one factor to another (noted in black font)

Unexplained 35%

Factor 2: Fun and Gameplay 19%

Factor 3: Social Aspects 23%

Factor 1: Management and Doing Good 24%

Management and Doing Good Variables:

• The Lottery is honest and trustworthy.

• The Lottery improves the Q.O.L. for people in MA.

• The Lottery is well-managed.

• The Lottery is innovative.

• The Lottery provides valuable funding…

Social Aspects Variables:

• The Lottery is for people like me.

• Most of my friends and colleagues play the Lottery.

• The Lottery offers me something to look forward to.

• Fun to play jackpot games

Fun and Gameplay Variables:

• It is fun to play scratch tickets.

• The Lottery is fun.

• The Lottery is easy to play.

• The Lottery makes a good gift.

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Segmentation: Monthly+ Players

24%

29%

27%

20%

Segment 1 - Regular, All Game Players

Average Yearly Reported Spend:

$1,829

Percent Who Play At Least 1X Per Month: 72%

Segment 2 - Young, Female, Keno Players

Average Yearly Reported Spend:

$2,103

Percent Who Play At Least 1X Per Month: 54%

Segment 3 - Primary Instant Players

Average Yearly Reported Spend:

$474

Percent Who Play At Least 1X Per Month: 37%

Segment 4 - Older Infrequent Players

Average Yearly Reported Spend:

$702

Percent Who Play At Least 1X Per Month: 46%

The factors described in the previous slide are then used to segment players. Based on their attitudes players are then segmented into clusters. While Lottery game play and spending is not used to create these segments, they are used to describe these segments.

Segmentation is useful in understanding how different attitudes impact gameplay, spending, and other factors.

Play Frequency

Spending

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2. Key Findings

3. Perceptions of Institutions and the Economy

4. Play Frequency and Attributes

5. Segmentation Overview

6. Lottery Player Segments

0 3 5 8 10

5.7 7.6

7.4 7.2

7.8 7.4 7.5

7.9 7.8 7.8

8.3 8.5 8.5

8.9

Segment 1 �39

Segment Profile: Segment 1 - Attitudes On all factors tested, Segment 1 over indexes compared to the full population of Monthly+ Lottery Players. In particular, they over index for the Lottery offering them something to look forward to.

n=339

The Lottery is easy to play The Lottery is fun

It’s fun to play scratch tickets The Lottery provides valuable funding

Lottery tickets make a good gift The Lottery is well managed

It’s fun to play jackpot games like Mega Millions The Lottery is honest and trustworthy

Most of my friends and colleagues play the Lottery The Lottery is for people like me

The Lottery is innovative The Lottery improves the quality of

The Lottery offers something for me to look forward to Play more if was sold in places I spend more time

All Players

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Segment Profile: Segment 1 - Demographic Profile

0%

25%

50%

75%

100%

18-24 25-34 35-44 45-54 55-64 65+

17%20%19%21%16% 7%

Gender

Age

Education Social Media Usage

Less than 4 Year College 59%

4 Year College+ 41%

44% 56% Have Account

If Have Account, Use Daily

Very Likely to Follow

MA Lottery

82% 76% 28%

42% 45% 23%

48% 56% 21% n=339

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Segment Profile: Segment 1 - Media Consumption

0%

25%

50%

75%

100%

Cable/Sat. Streaming (Netflix, Hulu) Digital Ant.

4% 18%

76%

Primary In Home Media Consumption

Subscription Video Services

71%

34%

55%

7%

Primary Sources of News

Music Platforms

Local TV News Cable News

Radio Local Paper (hard)

Facebook Local Paper (web)

Twitter

0% 25% 50% 75% 100%

13% 20%

35% 15%

30% 41%

67%

39%

33%

25%

13%

$0 $8 $15 $23 $30

$0.76

$1.87

$2.81

$4.52

$4.27

$5.23

$8.02

$6.80

$19.87

Segment 1

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Segment Profile: Segment 1 - Lottery Play Average Weekly Spend (Monthly+ Players)

28%31%17%24%

Weekly+ Weekly Monthly Yearly

Play Frequency

Play Frequency by Game Instant

Keno

MMil

MCash

PBall

L4L

MB 2X

#s Game

All or Nothing 94%

71%

78%

80%

44%

62%

31%

66%

16%

0%

3%

2%

4%

10%

4%

11%

5%

7%

1%

6%

7%

4%

20%

12%

25%

12%

25%

4%

9%

5%

6%

17%

11%

22%

9%

24%

0%

11%

7%

6%

8%

12%

11%

8%

28%

Weekly+ 1X Week Monthly Yearly Non

Scratch tickets

Keno

Mega Millions

The Numbers Game

Powerball

Mass Cash

Megabucks Doubler

Lucky for Life

All or Nothing

Monthly+ Players

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Segment Profile: Segment 1 - Instant Ticket Play

0%

25%

50%

75%

100%

$1 $2 $5 $10 $20 $30

4% 14%

26% 35%39%31%

2%3% 20%

36%30%

9%

Spend Most Play Regularly

Instant Ticket Play by Price Point

0%

25%

50%

75%

100%

Always Usually Occasionally Never

43% 32%

14%11%

Extended PlayInstant Play Compared to Last Year

0%

25%

50%

75%

100%

More Often Less Often Same

51%

22%27%

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Segment Profile: Segment 1 - Online Ticket Play

0%

25%

50%

75%

100%

$250M $300M $350M $400M $450M $500M >$500M

11%8%5% 17%11%14%

35%

7%12% 4%

17%12%14%

34%

Powerball Mega Millions

Price at Which PB/MM Spend Increases

0%

25%

50%

75%

100%

Yes

64%

83%86%

Powerball Mega Millions Megabucks Doubler

Additional PB/MM/MB2X When Jackpot Large

Price at Which Megabucks 2X Spend Increases

0%

25%

50%

75%

100%

$8M $9M $10M $11M $12M $13M Over $13M

17% 4%8%6%

32%

4%

30%

�45

Segment Profile: Segment 1 - Mobile Usage

0%

25%

50%

75%

100%

Yes No

57% 40%

Ever Visit MassLottery.com on mobile phone Where Use Phone Regularly

Play Games on Mobile Phone

0%

25%

50%

75%

100%

Yes No

31%

70%

0%

25%

50%

75%

100%

Commuting Work On Breaks On Weekend 2nd Screen Social Settings

32%

59%

76%

42%

25%

37% http://masslottery.com

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Segment Profile: Segment 1 - Other Info

0%

25%

50%

75%

100%

Yes No Don't know

16%

49% 35%

Ad Blocking Software Installed

Other Technology Usage (Frequently)

Hours Spent Per Day Watching TV

0%

25%

50%

75%

100%

Less than 1 1 to 2 2 to 3 More than 3

58%

21%15% 4%

0%

25%

50%

75%

100%

Apple/Google Pay On-demand Deliver Home Assistant Home Monitor Restaurant Application Venmo/Paypal

26% 11%10%16%10%11%

�47

Segment Profile: Segment 1 - Other Info (continued)

0%

25%

50%

75%

100%

Cable/Sat. Online Streaming Digital Ant.

4% 18%

76%

Type of TV

Drawings watched (if they watch any drawings)

0%

25%

50%

75%

100%

Free Games Paid Games Freemium

29% 17%

82%

Mobile Games Played (among those who play games, multiple allowed)

Podcast Listening

0%

25%

50%

75%

100%

Frequently Sometimes Rarely Never

42% 28%22%

8% 0%

25%

50%

75%

100%

Pball M-Mil L4L #s Game MB2X Mass Cash

46%

22% 41%

18%

66%69%

2.2 4.6

3.2 4.2

5.1 5.3

4.0 5.4

4.7 6.7

5.1 7.8

7.5 8.8

Segment 2 �48

Segment Profile: Segment 2 - Attitudes n=311

The Lottery is easy to play The Lottery is fun

It’s fun to play scratch tickets The Lottery provides valuable funding...

Lottery tickets make a good gift The Lottery is well managed

It’s fun to play jackpot games like Mega Millions The Lottery is honest and trustworthy

Most of my friends and colleagues play the Lottery The Lottery is for people like me

The Lottery is innovative The Lottery improves the quality of ...

The Lottery offers something for me to look forward to Play more if was sold in places I spend more time…

�49

Segment Profile: Segment 2 - Demographic Profile

0%

25%

50%

75%

100%

18-24 25-34 35-44 45-54 55-64 65+

7%13% 22%20%24%

13%

Gender

Age

Education Social Media Usage

Less than 4 Year College 65%

4 Year College+ 35%

64% 36% Have Account

If Have Account, Use Daily

Very Likely to Follow

MA Lottery

83% 77% 15%

40% 45% 10%

52% 62% 15% n=311

�50

Segment Profile: Segment 2 - Media Consumption

0%

25%

50%

75%

100%

Cable/Sat. Streaming (Netflix, Hulu) Digital Ant.

4%

37%

57%

Primary In Home Media Consumption

Subscription Video Services

73%

36%

60%

9%

Primary Sources of News

Music Platforms

Local TV News Cable News

Radio Local Paper (hard)

Facebook Local Paper (web)

Twitter

0% 25% 50% 75% 100%

13% 17%

38% 12%

31% 35%

57%

43%

36%

27%

12%

�51

Segment Profile: Segment 2 - Lottery Play Average Weekly Spend (Monthly+ Players)

$0 $15 $30 $45 $60

$0.41

$2.28

$1.68

$2.08

$3.96

$3.25

$3.54

$6.56

$57.81

Segment 2

Scratch tickets

Keno

Mega Millions

The Numbers Game

Powerball

Mass Cash

Megabucks Doubler

Lucky for Life

All or Nothing

Monthly+ Players

46%27%15%13%

Weekly+ Weekly Monthly Yearly

Play Frequency

Play Frequency by Game Instant

Keno

MMil

MCash

PBall

L4L

MB 2X

#s Game

All or Nothing 98%

78%

81%

79%

40%

68%

35%

68%

10%

7%

7%

6%

16%

6%

19%

10%

12%

1%

5%

6%

5%

22%

13%

22%

10%

34%

1%

5%

2%

4%

14%

7%

17%

4%

22%

1%

5%

3%

6%

7%

7%

7%

8%

21%

Weekly+ 1X Week Monthly Yearly Non

�52

Segment Profile: Segment 2 - Instant Ticket Play

0%

25%

50%

75%

100%

$1 $2 $5 $10 $20 $30

4%9%17%

39%33%34%

1%4%12% 31%

41%

12%

Spend Most Play Regularly

Instant Ticket Play by Price Point

0%

25%

50%

75%

100%

Always Usually Occasionally Never

56%

24% 11%9%

Extended PlayInstant Play Compared to Last Year

0%

25%

50%

75%

100%

More Often Less Often Same

51% 31%

17%

�53

Segment Profile: Segment 2 - Online Ticket Play

0%

25%

50%

75%

100%

$250M $300M $350M $400M $450M $500M >$500M

17% 5%4%

14%9%11%

40%

18% 8%4%

13%7%10%

34%

Powerball Mega Millions

Price at Which PB/MM Spend Increases Additional PB/MM/MB2X When Jackpot Large

Price at Which Megabucks 2X Spend Increases

0%

25%

50%

75%

100%

$8M $9M $10M $11M $12M $13M Over $13M

35%

12% 3%0%

12% 0%

38%

0%

25%

50%

75%

100%

Yes

58%

77% 81%

Powerball Mega Millions Megabucks Doubler

�54

Segment Profile: Segment 2 - Mobile Usage

0%

25%

50%

75%

100%

Yes No

66%

32%

Ever Visit MassLottery.com on mobile phone Where Use Phone

Play Games on Mobile Phone

0%

25%

50%

75%

100%

Yes No

36%

64%

0%

25%

50%

75%

100%

Commuting Work On Breaks On Weekend 2nd Screen Social Settings

33%

65% 71%

54%

29%

45%

�55

Segment Profile: Segment 2 - Other Info

0%

25%

50%

75%

100%

Yes No Don't know

19%

50% 31%

Ad Blocking Software Installed

Other Technology Usage (Frequently)

Hours Spent Per Day Watching TV

0%

25%

50%

75%

100%

Less than 1 1 to 2 2 to 3 More than 3

49% 28%

16% 5%

0%

25%

50%

75%

100%

Apple/Google Pay On-demand Deliver Home Assistant Home Monitor Restaurant Application Venmo/Paypal

25% 9%7%13%7%13%

�56

Segment Profile: Segment 2 - Other Info (continued)

0%

25%

50%

75%

100%

Cable/Sat. Online Streaming Digital Ant.

4%

37%

58%

Type of TV

Drawings watched (if they watch any drawings)

0%

25%

50%

75%

100%

Free Games Paid Games Freemium

27% 7%

97%

Mobile Games Played (among those who play games, multiple allowed)

Podcast Listening

0%

25%

50%

75%

100%

Frequently Sometimes Rarely Never

53%

30% 10%7%

0%

25%

50%

75%

100%

Pball M-Mil L4L #s Game MB2X Mass Cash

18% 9%

42%

7%

58% 71%

1.2 3.0

5.0 5.1

3.4 4.1

6.6 4.5

6.9 5.5

7.0 5.5

6.1 8.5

Segment 3 �57

Segment Profile: Segment 3 - Attitudes n=281

The Lottery is easy to play The Lottery is fun

It’s fun to play scratch tickets The Lottery provides valuable funding...

Lottery tickets make a good gift The Lottery is well managed

It’s fun to play jackpot games like Mega Millions The Lottery is honest and trustworthy

Most of my friends and colleagues play the Lottery The Lottery is for people like me

The Lottery is innovative The Lottery improves the quality of ...

The Lottery offers something for me to look forward to Play more if was sold in places I spend more time…

�58

Segment Profile: Segment 3 - Demographic Profile

0%

25%

50%

75%

100%

18-24 25-34 35-44 45-54 55-64 65+

37%

19%17%12%11% 4%

Gender

Age

Education Social Media Usage

Less than 4 Year College 50%

4 Year College+ 50%42% 57% Have

Account

If Have Account, Use Daily

Very Likely to Follow

MA Lottery

74% 67% 4%

29% 34% 3%

32% 51% 4% n=281

�59

Segment Profile: Segment 3 - Media Consumption

0%

25%

50%

75%

100%

Cable/Sat. Streaming (Netflix, Hulu) Digital Ant.

3%

25%

71%

Primary In Home Media Consumption

Subscription Video Services

61%

28%

50%

4%

Primary Sources of News

Music Platforms

Local TV News Cable News

Radio Local Paper (hard)

Facebook Local Paper (web)

Twitter

0% 25% 50% 75% 100%

6% 17% 18% 17%

26% 38%

63%

47%

25%

18%

13%

�60

Segment Profile: Segment 3 - Lottery Play Average Weekly Spend (Monthly+ Players)

$0 $8 $15 $23 $30

$0.04

$0.30

$0.53

$1.43

$1.66

$1.46

$1.96

$6.21

$15.24

Segment 3

Scratch tickets

Keno

Mega Millions

The Numbers Game

Powerball

Mass Cash

Megabucks Doubler

Lucky for Life

All or Nothing

Monthly+ Players

63%18%12%7%

Weekly+ Weekly Monthly Yearly

Play Frequency

Play Frequency by Game Instant

Keno

MMil

MCash

PBall

L4L

MB 2X

#s Game

All or Nothing 97%

82%

82%

86%

51%

67%

34%

71%

26%

1%

4%

3%

8%

12%

6%

20%

10%

12%

1%

4%

6%

2%

23%

12%

29%

8%

28%

5%

6%

1%

11%

9%

14%

8%

22%

1%

6%

4%

3%

4%

7%

3%

4%

12%

�61

Segment Profile: Segment 3 - Instant Ticket Play

0%

25%

50%

75%

100%

$1 $2 $5 $10 $20 $30

1%4%12% 31%

13% 30%

4%1% 18%

27% 39%

12%

Spend Most Play Regularly

Instant Ticket Play by Price Point

0%

25%

50%

75%

100%

Always Usually Occasionally Never

62%

22%14% 3%

Extended PlayInstant Play Compared to Last Year

0%

25%

50%

75%

100%

More Often Less Often Same

62%

31%

8%

�62

Segment Profile: Segment 3 - Online Ticket Play

0%

25%

50%

75%

100%

$250M $300M $350M $400M $450M $500M >$500M

19%13% 1%

22% 7%

15% 23% 19%17%

2%

25%

4%10% 23%

Powerball Mega Millions

Price at Which PB/MM Spend Increases Additional PB/MM/MB2X When Jackpot Large

Price at Which Megabucks 2X Spend Increases

0%

25%

50%

75%

100%

$8M $9M $10M $11M $12M $13M Over $13M

48%

0%5%5%10% 0%

33%

0%

25%

50%

75%

100%

Yes

16%

58% 65%

�63

Segment Profile: Segment 3 - Mobile Usage

0%

25%

50%

75%

100%

Yes No

84%

13%

Ever Visit MassLottery.com on mobile phone Where Use Phone

Play Games on Mobile Phone

0%

25%

50%

75%

100%

Yes No

56% 44%

0%

25%

50%

75%

100%

Commuting Work On Breaks On Weekend 2nd Screen Social Settings

19%

41%

65%

34%

16%

71%

�64

Segment Profile: Segment 3 - Other Info

0%

25%

50%

75%

100%

Yes No Don't know

21% 38%30%

Ad Blocking Software Installed

Other Technology Usage (Frequently)

Hours Spent Per Day Watching TV

0%

25%

50%

75%

100%

Less than 1 1 to 2 2 to 3 More than 3

53%

25%17% 3%

0%

25%

50%

75%

100%

Apple/Google Pay On-demand Deliver Home Assistant Home Monitor Restaurant Application Venmo/Paypal

15% 4%3%9%3%5%

�65

Segment Profile: Segment 3 - Other Info (continued)

0%

25%

50%

75%

100%

Cable/Sat. Online Streaming Digital Ant.

3%

25%

70%

Type of TV

Drawings watched (if they watch any drawings)

0%

25%

50%

75%

100%

Free Games Paid Games Freemium

24% 5%

91%

Mobile Games Played (among those who play games, multiple allowed)

Podcast Listening

0%

25%

50%

75%

100%

Frequently Sometimes Rarely Never

59%

30% 9%3%

0%

25%

50%

75%

100%

Pball M-Mil L4L #s Game MB2X Mass Cash

17% 0%

42%

0%

55% 75%

4.0 3.9

3.7 3.3

3.8 4.1

3.4 4.4

3.9 3.9

4.4 4.5 4.5

5.0

Segment 4

�66

Segment Profile: Segment 4 - Attitudes n=228

The Lottery is easy to play The Lottery is fun

It’s fun to play scratch tickets The Lottery provides valuable funding...

Lottery tickets make a good gift The Lottery is well managed

It’s fun to play jackpot games like Mega Millions The Lottery is honest and trustworthy

Most of my friends and colleagues play the Lottery The Lottery is for people like me

The Lottery is innovative The Lottery improves the quality of ...

The Lottery offers something for me to look forward to Play more if was sold in places I spend more time…

�67

Segment Profile: Segment 4 - Demographic Profile

0%

25%

50%

75%

100%

18-24 25-34 35-44 45-54 55-64 65+

14%17%15%15% 24%

16%

Gender

Age

Education Social Media Usage

Less than 4 Year College 63%

4 Year College+ 37%

43% 56% Have Account

If Have Account, Use

Daily

Very Likely to Follow MA

Lottery

75% 63% 12%

35% 56% 9%

44% 65% 11% n=228

�68

Segment Profile: Segment 4 - Media Consumption

0%

25%

50%

75%

100%

Cable/Sat. Streaming (Netflix, Hulu) Digital Ant.

4%

29%

55%

Primary In Home Media Consumption

Subscription Video Services

63%

33%

50%

9%

Primary Sources of News

Music Platforms

Local TV News Cable News

Radio Local Paper (hard)

Facebook Local Paper (web)

Twitter

0% 25% 50% 75% 100%

19% 20%

30% 41%

23% 38%

44%

70%

28%

25%

11%

�69

Segment Profile: Segment 4 - Lottery Play Average Weekly Spend (Monthly+ Players)

$0 $8 $15 $23 $30

$0.44

$1.43

$1.33

$3.68

$1.89

$1.81

$3.83

$3.35

$11.29

Segment 4

Scratch tickets

Keno

Mega Millions

The Numbers Game

Powerball

Mass Cash

Megabucks Doubler

Lucky for Life

All or Nothing

Monthly+ Players

53%23%12%11%

Weekly+ Weekly Monthly Yearly

Play Frequency

Play Frequency by Game Instant

Keno

MMil

MCash

PBall

L4L

MB 2X

#s Game

All or Nothing 96%

82%

80%

82%

52%

69%

37%

78%

31%

2%

4%

3%

2%

10%

2%

10%

3%

6%

3%

4%

8%

11%

13%

27%

10%

24%

1%

7%

9%

3%

15%

9%

16%

6%

19%

5%

3%

2%

6%

7%

7%

3%

18%

�70

Segment Profile: Segment 4 - Instant Ticket Play

0%

25%

50%

75%

100%

$1 $2 $5 $10 $20 $30

1%4%

26%30%26%33%

0%7%10%

36%37%

11%

Spend Most Play Regularly

Instant Ticket Play by Price Point

0%

25%

50%

75%

100%

Always Usually Occasionally Never

57%

23% 11%10%

Extended PlayInstant Play Compared to Last Year

0%

25%

50%

75%

100%

More Often Less Often Same

34%30%27%

�71

Segment Profile: Segment 4 - Online Ticket Play

0%

25%

50%

75%

100%

$250M $300M $350M $400M $450M $500M >$500M

14%11% 0%

14%18% 5%

39%

18%16% 0%6%

22% 6%

32%

Powerball Mega Millions

Price at Which PB/MM Spend Increases Additional PB/MM/MB2X When Jackpot Large

Price at Which Megabucks 2X Spend Increases

0%

25%

50%

75%

100%

$8M $9M $10M $11M $12M $13M Over $13M

30%25%

0%5% 20%

5% 15% 0%

25%

50%

75%

100%

Yes

65%64% 69%

�72

Segment Profile: Segment 4 - Mobile Usage

0%

25%

50%

75%

100%

Yes No

66%

30%

Ever Visit MassLottery.com on mobile phone Where Use Phone

Play Games on Mobile Phone

0%

25%

50%

75%

100%

Yes No

45% 55%

0%

25%

50%

75%

100%

Commuting Work On Breaks On Weekend 2nd Screen Social Settings

22%

48%

57%

36%

26%

38%

�73

Segment Profile: Segment 4 - Other Info

0%

25%

50%

75%

100%

Yes No Don't know

18%

46% 36%

Ad Blocking Software Installed

Other Technology Usage (Frequently)

Hours Spent Per Day Watching TV

0%

25%

50%

75%

100%

Less than 1 1 to 2 2 to 3 More than 3

46% 25%20%

4%

0%

25%

50%

75%

100%

Apple/Google Pay On-demand Deliver Home Assistant Home Monitor Restaurant Application Venmo/Paypal

16% 7%8%11%9%14%

�74

Segment Profile: Segment 4 - Other Info (continued)

0%

25%

50%

75%

100%

Cable/Sat. Online Streaming Digital Ant.

7%

29%

55%

Type of TV

Drawings watched (if they watch any drawings)

0%

25%

50%

75%

100%

Free Games Paid Games Freemium

24% 5%

91%

Mobile Games Played (among those who play games, multiple allowed)

Podcast Listening

0%

25%

50%

75%

100%

Frequently Sometimes Rarely Never

37%35% 17%11%

0%

25%

50%

75%

100%

Pball M-Mil L4L #s Game MB2X Mass Cash

17% 0%

26% 13%

68% 54%

�75

2. Key Findings

3. Perceptions of Institutions and the Economy

4. Play Frequency and Attributes

5. Segmentation Overview

6. Lottery Player Segments

�76

Marketing: Ad Recall Do you recall seeing or hearing any advertising for the Massachusetts Lottery in recent months?

No 66%

Yes 34%

0%

25%

50%

75%

100%

Played Jackpot Game After Seeing Ad Tried New Game After Seeing Ad

22%

39%

Advertising Motivated Behavior

�77

Marketing: Ad Recall TV Do you recall seeing this TV ad promoting the Massachusetts Lottery?

0%

25%

50%

75%

100%

I am certain I have seen It is possible I have seen I don't think I have seen I am certain I have not seen

43%

20%12% 25% l�78

Marketing: Ad Recall Radio Do you recall seeing this radio ad promoting the Massachusetts Lottery?

0%

25%

50%

75%

100%

I am certain I have heard It is possible I have heard I don't think I have heard I am certain I have not heard

39%

25%24%

12%

�79

Marketing: Ad Recall Out of Home Do you recall seeing this out of home ads promoting the Massachusetts Lottery?

0%

25%

50%

75%

100%

I am certain I have seen It is possible I have seen I don't think I have seen I am certain I have not seen

41% 24%22%14%

�80

Marketing: Ad Recall Social Media Do you recall seeing these social media ads promoting the Massachusetts

Lottery?

0%

25%

50%

75%

100%

I am certain I have seen It is possible I have seen I don't think I have seen I am certain I have not seen

51%

29% 13%7%

�81

Marketing: Ad Recall Online Ads Do you recall seeing these online ads promoting the Massachusetts Lottery?

0%

25%

50%

75%

100%

I am certain I have seen It is possible I have seen I don't think I have seen I am certain I have not seen

55%

27% 11%7%

�82

Marketing: Ad Recall Billboards and Signs Do you recall seeing a billboard or sign advertising…?

0%

25%

50%

75%

100%

I am certain I have seen It is possible I have seen I don't think I have seen I am certain I have not seen

26% 21%

34%

19% 26%

20% 28%26%

Powerball/Mega Millions Jackpot New Game

�83

Marketing: Ad Recall Other Ads Do you recall seeing…?

0%

25%

50%

75%

100%

I am certain I have seen It is possible I have seen I don't think I have seen I am certain I have not seen

24% 17%

31%28% 25% 18%

29%29%

46%

31%

19%

5%

47%

28%

19%

6%

44%

30%

20%

7%

Social media Print version of paper Online ad In-store Jackpot In-store games

�84

2. Key Findings

3. Perceptions of Institutions and the Economy

4. Play Frequency and Attributes

5. Segmentation Overview

6. Lottery Player Segments

�85 iLottery: Likelihood to Play Some states currently make Lottery games available online through a website; this means you can buy Lottery games online, directly from the Lottery in addition to buying them from a Lottery retailer. If this service were to be made available in Massachusetts, how interested would you be in playing the Massachusetts Lottery online?

Below is a list of potential games that could be made available online by the Massachusetts Lottery. How interested would you be in playing each of the following games: Very interested, somewhat interested, not very interested, not at all interested.

Overall

Instant Win

Jackpot Games

Mass Cash

Lucky For Life

Numbers Game

Keno

All or Nothing

0% 25% 50% 75% 100%

8%

12%

12%

13%

14%

21%

24%

15%

24%

23%

30%

29%

34%

34%

30%

29%

28%

24%

24%

24%

21%

18%

18%

27%

40%

41%

34%

34%

32%

28%

29%

29%

Not at all interested Not very interested Somewhat interested Very Interested

�86

Casinos: Likelihood to Visit Casinos in Massachusetts are currently in the process of opening. A casino opens in Springfield last year (2018) and one is scheduled to open the Boston area in June. Which of the following best describes how likely you are to visit?

0%

10%

20%

30%

Already Visted Very likely S'what likely Not very likely Not at all likely

21% 24%

28%

21%

8%

�87

Sports Betting: History and Views of Legality Currently, betting on the outcome of a sporting event is illegal in the United

States with the exception of a few states, such as Nevada. Have you ever legally bet on the outcome of a sporting event?

0%

25%

50%

75%

100%

Yes No

82%

18%

Do you think sports betting should be legal in the Massachusetts?

0%

25%

50%

75%

100%

Yes No Don't Know

32%

15%

53%

�88

Sports Betting: Likelihood to Bet

If Sports Betting Were Legal, how frequently do you think you would bet?

0%

10%

20%

30%

40%

50%

More than 1X/Week ~1X/Week ~1X/Month A Few Times/Year Rarely Would Not

42%

21% 17%

7% 10%

4%

Segment

Segment

Segment

Segment

<35 Lapsed and Non

>35 Lapsed and Non

More than 1X/Week 8% 4% 1% 7% 6% 3%

~1X/Week 16% 9% 10% 11% 8% 3%

~1X/Month 11% 7% 6% 13% 7% 3%

A Few Times/Year 22% 19% 12% 18% 5% 4%

Rarely 18% 29% 23% 17% 25% 7%

Would Not 24% 32% 47% 34% 50% 80%

�89

Sports Betting: Regulation and Sports Bet

If sports betting were legal, in Massachusetts, what organization should regulate it?

0%

25%

50%

75%

100%

Lottery Gaming Comm. New Org. Other

6%3%

58%

30%

NFL

MLB

NBA

NCAA Basketball

NHL

NCAA Football

MMA/Boxing

E-Sports

PGA

MLS

0% 25% 50% 75% 100%

2% 2% 3%

8% 8%

10% 11%

19% 19%

31%

What type of sports betting would you participate in?