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STATE LOTTERY AGENCY

ORIGIN & FUNCTIONS


[photo, Montgomery Park Business Center, 1800 Washington Blvd., Baltimore, Maryland] Formed by constitutional amendment in 1972, the State Lottery Agency began operation on January 2, 1973 (Chapter 365, Acts of 1972, ratified November 7, 1972). The State Lottery Agency oversees the Maryland State Lottery. Lottery tickets are sold and cashed in at sales outlets in licensed retail establishments throughout Maryland. Transactions are conducted through terminals connected to a computerized on-line real-time system.

Montgomery Park Business Center, 1800 Washington Blvd., Baltimore, Maryland, February 2004. Photo by Diane F. Evartt.


The State Lottery Agency conducts statewide lotteries for instant, daily, keno and lotto games, as well as a multi-jurisdictional game and two subscription games. Official winning numbers are drawn on live television and are posted on the State Lottery Agency website. For the Pick 3 and Pick 4 games, they are drawn midday and evenings (Monday through Sunday). Evening drawings also are held for Lotto (Saturday & Wednesday), Bonus Match 5 (Monday through Sunday), and Mega Millions (Tuesday & Friday).

Statewide Lotteries. The Agency sponsors a three-digit daily lottery (Pick 3); and a four-digit lottery (Pick 4) twice daily. In addition, the Agency runs a pick-6-out-of-49 Lotto Game (minimum jackpots of $1 million) with twice-weekly drawings, and a 5-of-39 game called Bonus Match 5 ($50,000 top prize) with drawings Monday through Sunday. A bonus ball is drawn from the remaining 34 numbers for an extra chance to win.

Mega Millions (formerly The Big Game) is a multi-state game with multi-million dollar jackpots and cash prizes. Players select six numbers: five out of 56 and one Gold Mega Ball number out of 46. Winning numbers are drawn on Tuesday and Friday evenings; the game costs $1 to play. California, Georgia, Illinois, Massachusetts, Michigan, New Jersey, New York, Ohio, Texas, Virginia, and Washington also participate in this game. Proceeds from Mega Millions and certain instant scratch-off games are designated for the Maryland Stadium Authority.

Prizes. Prizes of $600 or less may be claimed through any retail sales outlet. Winning tickets up to $5,000 can be cashed at certain retail locations called Agents Plus. Winning tickets of any amount may be redeemed at the Maryland State Lottery Claim Centers in Baltimore and Lanham. Each outlet also provides how-to-play brochures and other game information.

Revenues from the State Lottery are deposited in the General Fund of the State Treasury for the use of Maryland government. Lottery income is the State's third largest source of revenue, after income taxes and sales taxes.

The Director of the Agency is appointed by the Governor with Senate advice and consent (Code State Government Article, secs. 9-101 through 9-125). With the approval of the State Lottery Commission and the Legislative Policy Committee of the Maryland General Assembly, the Director of the State Lottery Agency may enter into agreements to operate multijurisdictional lotteries with any other political entity outside the state or outside the United States, or with a private licensee of a state or other nation (Chapter 449, Acts of 2002).

Within the State Lottery Agency are six divisions: Administration, Finance, and Operations; Communications; Information Technology; Procurement and Minority Business Enterprise; Product Development, Creative Services, and Research; and Sales. The Agency also is aided by the State Lottery Commission.


ADMINISTRATION, FINANCE & OPERATIONS DIVISION

Under the Administration, Finance and Operations Division are ten units: Administration and Operations; Agent Administration; Budget and Special Projects; Customer Resource Center; Facilities Management; Finance and Accounting; Human Resources; Procurement and Contract Administration; Security; and Warehouse Operations.


COMMUNICATIONS DIVISION

The Communications Division originated as the Public Affairs Division in 1997, and reformed under its present name in 2001. The Division oversees media relations and responds to public inquiries about Lottery matters. It also coordinates legislative research and services, and prepares testimony for presentation before legislative committees. Annual reports, newsletters, and special event publications are produced by the Division. All special events, promotional contests, trade shows, fairs, and festivals are planned, coordinated, and implemented by the Division. In addition, the Division supervises and conducts drawings for the Pick 3, Pick 4, Bonus Match 5, and Lotto games.

Under the Communications Division are three units: Lottery Drawing; Public Affairs; and Special Events.


INFORMATION TECHNOLOGY DIVISION

The Information Technology Division began as the Electronic Data Processing, Research and Development Division, and reorganized under its present name in 1997. The Division manages the operation of data processing systems that support Lottery gaming activities. It also provides technical assistance to the Agency, and develops and supports internal data systems, the local area network, and website infrastructure.

Three units are directed by the Division: On-Line Gaming System Management; Operations; and Systems and Programming.


PROCUREMENT & MINORITY BUSINESS ENTERPRISE DIVISION

The Procurement and Minority Business Enterprise Division was created in June 2005.

Under the Division the Minority Business Enterprise Program transferred from the Research and Planning Division in June 2005.


PRODUCT DEVELOPMENT, CREATIVE SERVICES & RESEARCH DIVISION

In June 2005, the Product Development Division, the Creative Services Division, and the Research and Planning Division joined to form the Product Development, Creative Services and Research Division.

The Division oversees four sections: Creative Services; Instant Ticket Products; Publications; and Strategic Products.

CREATIVE SERVICES
In 2001, the Creative Services was initiated as the Creative Services Division. It merged with the Product Development Division and the Research and Planning Division to form the Product Development, Creative Services and Research Division in June 2005.

Under the Division, Creative Services develops advertising strategies to achieve the Lottery Agency's sales and revenue objectives. It evaluates the effectiveness of advertising in terms of reach, frequency, and impression on audiences. Advertising time and space for jackpot announcements, product introductions, promotions, and winner awareness are purchased by this section. To inform consumers about Lottery products, promotions, and programs, the section manages the development and production of advertising materials for television, radio, and print media, as well as at retail sales outlets.

INSTANT TICKET PRODUCTS
Instant Ticket Products develops on-line games (Pick 3, Pick 4, Keno, Keno Bonus, Lotto, Bonus Match 5, & Mega Millions) and instant ticket products (scratch-off games). To increase sales, the Division also plans promotions.

STRATEGIC PRODUCTS
Functions of Strategic Products started with the Electronic Data Processing, Research and Development Division from which the Research and Planning Division emerged as a separate entity in 1997. In June 2005, when the Division combined with the divisions for product development and creative services, it reformed as a section called Strategic Products.


SALES DIVISION

The Sales Division began as the Marketing Division, reformed as the Marketing and Advertising Division in 1997, reverted to its original name - Marketing Division - in 1998, and adopted its present name in 2001. The Division works to maximize Lottery sales throughout Maryland. It recruits new outlets and ensures that all locations have sufficient products and materials available for players. The Division informs the public and Lottery agents about new games, and monitors the compliance of retailers with Lottery Agency regulations.

This division oversees Corporate Sales; Network Services; and Regional Sales.

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 Maryland Manual On-Line, 2006

June 30, 2006   
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