SCA Helps Lottery Address Budget Cuts with Promotional Risk Management Solutions
Quickly Pays Texas Lottery Operator $1,000,000 as part of Retailer Bonus Program.
SCA, the industry leader in promotional risk management, is revealing expanded solutions for the lottery market. Just weeks after cementing its contract with the Texas Lottery Commission to cover their Retailer Bonus Program, SCA issued a check for $1,000,000 to the owner of a convenience mart in Cedar Park, Texas, where a $227 million jackpot-winning ticket for the Mega Millions® drawing held on Tuesday, Sept. 24, was sold.
According to Gary Grief, Executive Director of the Texas Lottery Commission, SCA’s risk management solution is helping extend the Texas Retailer Bonus Program. “Working with SCA helps us mitigate the financial risks and budgetary uncertainty of maintaining a program like this. SCA’s services allow us to manage and extend our budget,” says Grief.
For years, the Texas Lottery Commission offered retailers a 1% bonus if a winning jackpot ticket was sold at their store. This year, the Texas Lottery was faced with a decrease in funding. When budget constraints forced the Commission to re-evaluate this bonus program, the Texas Lottery sought creative solutions.
“Like everyone, we are in search of ways to offer big promotional value on a fixed budget and that’s where SCA really shines,” says Grief. “SCA listened to our goals and quickly assessed the situation to come up with a solution, which has allowed us to continue our program to retailers and preserve our budget.”
SCA’s Director of Business Development, Jackie Walker, worked with the Texas Lottery Commission to find a solution. “We took a look at jackpot odds, ticket sales and simulations to assess the risk that covers 208 total draws for Powerball® and Mega Millions. I’m glad we were able to quickly come up with a plan that works for them,” says Walker.
When the multi-state linked lottery, Mega Millions, hit in Texas, the Lottery Commission alerted SCA immediately and within 10 business days, a $1,000,000 check was issued to the lucky retail owner.
Texas Lottery officials are pleased with the promotional expertise and prompt payment SCA offers. “We’re thrilled with the outcome,” says Grief.
SCA founder and President, Bob Hamman, agrees. “This is what we do. We find solutions to help businesses mitigate their risks and run successful promotions.”
Risk management services for the Texas Retailer Bonus Program are just one of many promotional solutions for the lottery market that SCA plans to present at La Fleur’s 2019 Lottery Conference in Austin, TX November 18-21. “We’ve paid over $200 Million in prize coverage,” says Hamman “and we want to share the message with lottery operators and other industries that you can afford to put on big promotions if you have the right people helping you manage the financial risk.”