Annual report

16 Pages·1995·5.4 MB·English

by  Alberta Lotteries

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1989
ANNUAL REPORT
MMEESSSSAAGGEE FFRROOMM TTHHEE
MMIINNIISSTTEERR
II A lbertans win as a r esult of the many unique benefits made possible by the operation of
lotteries in Alberta. The innovative use of lottery revenues is o ne of the ways the Government of Alberta
advances its commitment to further enriching the quality of family and community life afforded to all
Albertans, today and for the future.
Revenues generated by lotteries are used to benefit Albertans from all walks of life through a
wide variety of recreational, cultural, sport, and community initiatives in every corner of the
province.
However, all the good things that are made possible from the Lottery Fund depend on lottery tic-
ket sales. This is a chieved by the marketing and sales efforts of Alberta Lotteries through the retailer
network. For this reason, I c ommend the retailers for the key part they play, and for their dedication to
customer service and good customer relations. I a m sure fiscal 1 990 will be the beginning of an even
brighter new decade of success for lotteries in Alberta, to the continuing benefit of all Albertans.
Hon. Ken Kowalski
MINISTER
aying the groundwork for the next decade, by developing an aggressive approach to long
range planning, and an intensive review of our retail network count among the major highlights of
Fiscal 1 989. In 'this, a “ comer-stone” year, we are pleased to report a s ales income in e xcess of $ 288
million, representing a p er capita sales figure of $164.65.
Each year is n ot without its challenges, and Fiscal 1 989 was no exception. Our retailers were
able to meetthe challenges of introducing and marketing an ever expanding variety of lottery products.
Aided by upgraded training and services provided by A lberta Lotteries, our retailers achieved very high
levels of customer service, with excellent sales performance.
Our success in t he past year can also be attributed to the continuing support and commitment
of the Alberta Provincial Government, the Board and the staff of the Western Canada Lottery Corpora-
tion. We c ontinued to enjoy excellent working relationships with our associates in S askatchewan and
Manitoba, a situation which helped al! of us improve the quality of lottery operations across
Western Canada.
The Board of Directors of A lberta Lotteries must be singled outfortheir contribution. Their com-
bined vision and response, in developing a l ong range forecast, guide Alberta Lotteries into the
next decade.
At this time, I a lso welcome the opportunity to thank our employees for their teamwork and
shared dedication. The success of Alberta Lotteries and the significant contributions made to the lives
of Albertans by the operation of lotteries, has resulted from all of us working together.
Howard MacDonald
iscal 1 989 saw the focus of A lberta Lot- The Plus, exclusive to Western Canada,
teries directed at its p roducts, particularly the was introduced to the marketplace with a m ajor
on-line games available to Albertans at 1 ,381 multimedia campaign. The Plus, an add-on fea-
Lottery Ticket Centres throughout the province; ture for the existing lotto games, supports
and the retailer network and their improved retailers by maximizing profits and offers the tic-
ability to service the needs of the consumer. ket buying public their greatest odds of winning
a prize. Sales of The Plus totalled
On-LI ne Oamss
$14,122,662.
On-line sales accounted for Instant Products - I nstant Success
$176,687,331 in fiscal 1989 representing 61%
of total lottery sales. Our retailers continued to offer the con-
Lotto 1/49 continued to p roduce leading sumer an excellent entertainment value with a
sales figures, and generated sales of variety of Instant Win games. There were more
$1 49,434,846, or 51 .8% of total sales. games, more prizes, and more winners; which
Consumers saw the introduction of the equated to increased commissions on the
first Lott® 6/4® Bonus Draw. During the months retail level.
of March and October Jackpots were brought up Existing games such as Lost Pyramids
to the $10 million mark, with a t otal of $50 and Go Fbr The Gold continued to sell into this
million in Bonus Jackpot prizes up for grabs. fiscal period, along with new games such as 12
Days Of Christmas, Cyborg Factor, Super Ski,
Lotto 6/36, last year’s rising star, con-
tinued tos ervice its loyal western customer base and the all time favourite Zodiac.
and posted sales figures of $ 13,129,823.
'84
'89
Total Sales of
79
All Lottery Products in:
A n ew innovation in the $1 Instant Win an exciting $20 Special Event ticket was
games saw the introduction of the $1 ,000 top introduced. These tickets offered the consumer
prize. This was successfully launched with instant wins, television appearances, and most
Banco, and also implemented in Autumn Gold of all; mega prizes. $22,992,400
and Quick Site. During fiscal 1 989, there were two such
To fill a niche in our ever changing “big game” tickets issued. Spoefet *88 was
marketplace, a v ariety of $ 2 Instant Win games drawn July 1,1988 in Montreal, and on January $94,153,476
were introduced. First & G oal provided football 8, 1989, Celebration ’39 held its draw in
fun for the football fan, Tteiaure feM featured Vancouver. These two games accounted for
the lure of a t ropical vacation, and Christmas $7,976,383 in sales during the fiscal year. $288,425,000 •88
100
Cards provided customers with an opportunity 300 250 200 150
to give the best gift ever. Double tee was Traditional Tickets
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sequelled twice during this fiscal year to keep up
with the demand.
In January 1986 The Western Express
Our retailer network rallied behind these 15
received a r efitting, keeping ittuned to the chang- N’u87m ber of
new initiatives and produced sales figures of ing lottery ticket buyers needs. This change Instant Games in:
$69,465,017, and generated $3,450,000 worth
increased the play value, and the public respon-
of retail commissions. ded in this fiscal year by purchasing
$20,269,806 worth of the $1 tickets.
Special Event Tickets The Provincial, a n ational tradition with a
10
13 year history, continued to maintain a s trong
The lottery business marked the end of an presence due to the exciting bonus draws held
era with the Super Loto finale. April 24, 1989 throughout the year, generating sales of
was the last draw in the games 9 y ear reign. $13,234,613.
To fill the gap in the “big game” market
5
C\J
RETAILERS
Number of
On-li'n8e5 Retailers in: his y ear we must single out our retailers needs of our consumers. We aimed at rallying
’87 as being the driving force behind our successes. with our retailers to better focus on customer
It was a y ear of continuous challenges, and service, now and for the 1 990’s. As a r esult, our
599 '89 retailers responded by turning it i nto a y ear of retailers kept on top of market trends, met con-
sumer demands, provided customer service
opportunity.
During fiscal 1 989, our computerized on- support, and helped to g enerate sales in excess
1,014 line retail network operating across Alberta of $ 288 million forfiscal 1 989. The year also saw
reached a t otal of 1 ,381 outlets. Ongoing train- a h igher level of encashment taking place at the
retail level due to the enhanced play value of new
ing programs were administered to each on-line
1,381 retailer so that they would be able to service a lottery products and the increased number of
§0© 1,00® 1,500 winners.
public which was looking for more diversifica-
tion, more prizes, and new concepts in lottery The most significant return to the retailers
games. A n ew distribution initiative focusing on came in the form of the retail commissions. In
improved communication to the front line fiscal 1989, $17,500,306 in retail commissions
retailer was launched and resulted in increased was earned, contributing to the overall base of
retailer service and a h igher level of p rofitability Alberta commerce.
We salute our retailers because this year,
in the promotion of Alberta Lotteries’
as in p revious years, their diligence, drive and
Total Number of Retailers in: products.
2,500 '87 This year marked an important step in t he degree of commitment is c entral to the high level
of success enjoyed by Alberta Lotteries.
achievement of one of Alberta Lotteries’ goals;
the development of our retailers as lottery pro-
2,000 fessionals, understanding and servicing the
1,500 ’85
1,000
m z CO
ocs T
'85
SELUNG A W INNER
Total Number of
he greatest satisfaction for Alberta’s It d oesn’t have to be the big Jackpot to be Products in:
an exciting win. Just ask Miles Leslie, who with
lottery ticket retailers is t o “sell a w inner”. Every
day, retailers from across the province are told his Rrst & G oal ticket won a t rip for two to the
Grey Gup, plus a n ew car, and was ... oh so close
how lottery wins have made someone’s life a l it-
tle easier. Paying off the mortgage, taking an to the final $50,000 win during the game. Now
exotic holiday, buying a n ew car, or saving for there is a f ootball fan who will never forget the '87
1988 Grey Cup, and neither will the folks from
their children’s education are just some of the
things Albertans do with their larger lottery wins. Capilano Lauto Ticket Sales in Edmonton who
Our retailers share in the excitement. In fiscal sold him that winning ticket.
1989 this excitement amounted to over Red Rooster Store #1 24 was the talk of
$134,723,365, representing the total amount the town when Oscar Munar of Calgary won his 20 15 10
available to be won in Alberta. $1 00,000. You see, Oscar won the first big prize •86 20
Of course, the most exciting story centres in Alberta from the exciting new Plus game, •89 150
something that the retailers were all
around winning the “big one”. This year that
story was centred around the Thatchers, a anticipating. Approximate Total Dollars
Available to be Won in:
young couple from St. Albert, Alberta who Be it a b ig or a s mall prize, every day there
purchased a L otto 6/49 ticket at the Edmonton is a n Albertan winning and both the retailer and (Millions)
International Airport and came away with
the consumer share in that “winning feeling”.
$10,000,000 worth of dreams when they won 125
the Jackpot. It turned out to be a g reat thrill
for everyone.
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OUR BACKGROUND
The Wes tom CasuMa Lottery Corporation organization for the creation of lottery games, The structure of the Board of Directors for
The Western Canada Lottery Foundation the production of lottery tickets, and other cen- Alberta Lotteries changed in September, 1987.
was incorporated under the Canada Corp- tralized functions such as advertising and The new, ten person Board of Directors is made
orations Act i n 1 974 by the Provinces of British publishing winning numbers.
up of three members from Edmonton North-
Columbia, Alberta, Saskatchewan and lands, three members from the Calgary Exhibi-
Manitoba. On March 31 , 1 985, British Columbia Alberta Lotteries (Western Canada Lottery tion and S tampede Limited, three members from
withdrew from membership in the Western Alberta Division)
the general public, and a V ice Chairman’s posi-
Canada Lottery Foundation. The provincial Alberta Lotteries, a partnership of tion appointed by the Government of Alberta.
governments of Alberta, Saskatchewan and Edmonton Northlands and the Calgary Exhibi- The Board of Alberta Lotteries admini-
Manitoba and associate members, the Yukon tion and Stampede Limited, has operated since sters all l ottery functions related to the sale and
and Northwest Territories, continued to operate June, 1 974, under a l icence granted by the Pro- distribution of tickets. Alberta Lotteries has
together in the sale of lottery tickets. vincial Minister responsible for the Interprovin- headquarters in Edmonton and sales offices in
cial Lottery Act. The partnership is licenced as Edmonton and Calgary.
During the 1 986 fiscal year, the “Founda-
agent of the Government of Alberta to act as the
tion” changed its name to “Corporation” to
reflect more accurately the nature of its Provincial Marketing Office to assist the Cor-
operations. poration as m ay be authorized by t he Minister for
Alberta.
The Corporation’s head office is in Win-
nipeg, Manitoba and serves as a central
AUDITOR’S REPORT
W.
To the Partners of the
Western Canada Lottery Alberta Division:
e h ave examined the balance sheet of Western Canada Lottery Alberta Division as at
March 31 , 1 989 and the statement of changes in financial position for the year then ended. We have
also examined the statement of lottery operations in A lberta as derived from the financial statements of
the Western Canada Lottery Corporation for the year ended March 31 , 1989. Our examination was
made in accordance with generally accepted auditing standards, and accordingly included such tests
and other procedures as we considered necessary in the circumstances.
In our opinion, these financial statements present fairly the financial position of the Western
Canada Lottery Alberta Division as at March 31 , 1989, the changes in its financial position and the
results of lottery operations in Alberta for the year then ended in accordance with generally accepted
accounting principles applied on a b asis consistent with that of the preceding year.
Balance Sheet
March 31, 1989
(with comparative figures for the year
ended March 31, 1988)
1989
Assets 1988
Current assets:
Cash $ 537,846 $ 892,603
Term deposits (Note 4) 162,000 79,208
Accounts receivable 677,858 757,932
41 ,903
Due from Western Canada Lottery Corporation 49,579
Prepaid expenses and deposits 23,844 410,910
Inventory of tickets at distributors 791 ,293 648,532
2,234,744 2,838,764
Non-current assets:
Fixed assets at cost less accumulated depreciation (Note 5) 520,443 175,931
Total assets $ $
2,755,187 3,014,695
Liabilities
Current liabilities:
Accounts payable and accruals $ 439,561 $ 577,988
Due to Western Canada Lottery Corporation - 791 ,293
Inventory of tickets 648,532
Tickets sold to retailers 118,631 171,585
104,137
Other payables
1 ,453,622 1 ,4068,,563316
Obligation under capital lease 35,105 42,952
Excess of advances from Western Canada Lottery
Corporation over net operating expenses (Note 6) 1 ,266,460 1,565,107
Total liabilities $ $
2,755,187 3,014,695
(See accompanying notes) f J
Approved by the Board: /
Director Director