Massachusetts State Lottery Commission Meeting

Transcription

1 Massachusetts State Lottery Commission Meeting Executive Director s Report Delivered by: Michael R. Sweeney September 17, 2018

2 Fiscal Year Final Statement of Operations Net profit of $997 million, second-highest in the Lottery s 47-year history Record sales of $5.291 billion, surpassing the previous high of $5.233 billion established in fiscal year 2016 Record $3.891 billion in prizes paid to customers Record $303 million in commissions and bonuses earned by retailers 2

3 Impact of Powerball Jackpots Through week ending September 1 FY 2018 YTD FY 2019 YTD $ Change Total Sales $899.8 million $897.2 million ($2.6 million) Powerball Sales $41.4 million* $13.9 million ($27.5 million) Total Excluding Powerball $858.4 million $883.3 million $24.9 million *$758.7 million jackpot in August of FY

4 Impact of Keno Sales Through week ending September 1 FY 2018 YTD FY 2019 YTD $ Change Total Sales $899.8 million $897.2 million ($2.6 million) Keno Sales $158.6 million $175.3 million $16.7 million Total Excluding Keno $741.2 million $721.9 million ($19.3 million) 4

5 Best Instant Games of the Year La Fleur s Magazine, July/August 2018 Only two U.S. lotteries catapulted over the $1 weekly per capita sales level. (Massachusetts and Florida) Massachusetts Lottery s Blowout series game ranked number one among all U.S. lotteries with $2.13 in average weekly per capita sales. In the Top 3 $5 Instant Games ranking, the Massachusetts Lottery ranked number one in per capita sales. Its 50X ticket recorded $1.24 in average weekly per capita sales and indexed % of the U.S. lotteries top selling non-$1 games averaged between $0.10 and $0.24 per capita a week in sales while 14% ranged between $0.01 and $

6 Lottery Sales Update August Overall sales for August of 2018 were down $19.8 million from August Figures for the month of August 2018 August 2018 net profit and prize payout figures do not include accruals for prizes won that have not yet been paid. o Estimated net profit for August 2018 was $107.8 million compared to $108.4 million in August 2017, resulting in an estimated $0.6 million decrease in net profit. o Estimated prize payout for August 2018 was percent, as compared to percent in August Figures for Fiscal Year 2019 Our FY19 year-to-date net profit and prize payout figures both include accruals for prizes won that have not yet been paid. o Due in part to a higher number of instant ticket grand prize claims ($39 million in instant ticket grand prize claims in the first two months of FY19 compared to $29 million in the first two months of FY18): Our estimated year-to-date net profit for the first two months of FY19 is $185.2 million compared to $201.8 million for the first two months of FY18. After adding a 1-day average net profit figure of $2.9 million due to a shift in the calendar that resulted in 1 less day being included in the net profit figure for the first two months of FY19, the adjusted year-over-year change for the first two months of FY19 vs. the first two months of FY18 is an estimated $13.7 million decrease in net profit. Our estimated year-to-date prize payout for the first two months of FY19 is percent, as compared to percent for the first two months of FY18. August 2018 sales breakdown Compared to August of 2017, Keno sales were up $10.5 million and Mass Cash sales were up $779,778. Compared to August of 2017, Powerball sales were down $26.7 million (high jackpot of $245.6 million hit August 11, 2018 compared to $758.7 million jackpot hit August 23, 2017) and Mega Millions sales were down $2.9 million (high jackpot of $152 million compared to $393 million). 6

7 % 77.0% 5 Year Comparison Prize Payout as a % of Sales Through August 2018 (June 2018 & August 2018 Estimated) 76.0% 76.1% 75.0% 74.7% 75.2% 74.0% 73.0% 72.0% 71.0% 71.0% 73.6% 72.7% 72.4% 72.4% 72.3% 71.5% 71.2% 71.2% 71.0% 73.9% 73.0% 72.0% 71.9% 73.6% 73.3% 73.1% 73.0% 72.3% 72.3% 71.7% 71.4% 73.8% 73.4% 73.2% 73.1% 72.9% 73.0% 72.6% 72.5% 72.3% 71.4% 71.6% 71.6% 73.8% 73.7% 73.6% 73.3% 73.2% 73.4% 72.4% 72.4% 72.6% 72.0% 72.0% 72.0% FY19 FY18 FY17 FY16 FY % 70.1% 69.0% 68.0% 67.0% July-P1 Aug-P2 Sept-P3 Oct-P4 Nov-P5 Dec-P6 Jan-P7 Feb-P8 Mar-P9 Apr-P10 May-P11 June-P12 Period 7

8 MSLC Gross Sales Results AUGUST FY19 vs. FY18 Unadjusted Non Fiscal Year ($ millions) Through September 1, 2018 FY19 % of Total FY18 % of Total $ Change % Change Instant Tickets 69.9 to 80.4 $ % $ % -$ % Mega Millions 50.0 $ % $ % -$ % Powerball 50.0 $ % $ % -$ % Keno 70.0 $ % $ % $ % Mass Cash 55.0 $ % $ % $ % All or Nothing 70.0 $ % $ % -$ % Lucky for Life 60.0 $ % $ % $ % Numbers Game 63.0 $ % $ % $ % Megabucks Doubler 55.0 $ % $ % -$ % Total $ % $ % -$ % Instant Tickets 69.9 to 80.4 $ % $ % -$ % Draw Games 50.0 to 70.0 $ % $ % -$ % Monitor Games $ % $ % $ % Total $ % $ % -$ % Unadjusted Month 7/29/18-9/1/18 Month 7/30/17-9/2/17 5 weeks 5 weeks 35 days 35 days 8

9 MSLC Gross Sales Results YEAR-TO-DATE FY19 vs. FY18 Unadjusted Non Fiscal Year ($ millions) Through September 1, 2018 FY19 % of Total FY18 % of Total $ Change % Change Instant Tickets 69.9 to 80.4 $ % $ % -$ % Mega Millions 50.0 $ % $ % $ % Powerball 50.0 $ % $ % -$ % Keno 70.0 $ % $ % $ % Mass Cash 55.0 $ % $ % $ % All or Nothing 70.0 $ % $ % -$ % Lucky for Life 60.0 $ % $ % $ % Numbers Game 63.0 $ % $ % $ % Megabucks Doubler 55.0 $ % $ % -$ % Total $ % $ % -$ % Instant Tickets 69.9 to 80.4 $ % $ % -$ % Draw Games 50.0 to 70.0 $ % $ % -$ % Monitor Games $ % $ % $ % Total $ % $ % -$ % Unadjusted Year 7/1/18-9/1/18 Year 7/2/17-9/2/17 9 weeks 9 weeks 63 days 63 days 9

10 Recent Grand Prize Winners $1,000,000 Instant Prize Winner East Falmouth $100,000 Mass Cash Winner Plymouth $1,000,000 Instant Prize Winner Marlborough $1,000,000 Instant Prize Winner Scituate $1,000,000 Instant Prize Winner Malden $1,000,000 Instant Prize Winner Lynn 10

11 Keno 25 th Anniversary Player Promotions In celebration of Keno s 25 th Anniversary, every non-winning Keno and Keno to-go ticket purchased September will have a bonus chance to win. One $25,000 winner and twenty-four $2,018 winners will be selected. From September 30 through October 20, the Lottery will add an additional multiplier of 2X to Keno Bonus, resulting in more games having a bonus multiplier. 8.5 x 11 Poster 11

12 Keno 25 th Anniversary Agent Incentive In recognition of Keno s 25 th Anniversary, for every $300 worth of Keno and Keno to-go tickets sold from September 30 through October 20, agents will earn one entry into a drawing for five $2,500 prizes and twenty $500 prizes. 8.5 x 11 Poster 12

13 Keno 25 th Anniversary Secret Shopper From September 27 through October 19, Lottery Secret Shoppers will be visiting up to 300 randomly chosen Keno agents. Agents and employees will have opportunities to win prizes by wearing specific Lottery merchandise and displaying POS and other Lottery provided materials. 8.5 x 11 Poster 13

14 Lucky for Life Cash Harvest Promotion: October 1-21 From October 1-21, players who spend $4 or more on a single Lucky for Life ticket will be entered into a drawing to win prizes from $100 to $1,000. Players will receive a promotional ticket with a serial number at time of purchase. Winning serial numbers will be posted on masslottery.com on October x 11 Poster 14

15 Social Media Messaging Attention-grabbing Jackpot awareness (Facebook) Lottery machine at MGM Springfield (Instagram) Play Responsibly (Twitter) 15

16 Social Media Messaging Instant ticket product awareness (Facebook) Zip Trip Scratch for Cash promotion (Instagram) Interactive social media holiday post (Twitter) 16

17 Monthly Sales $400,000,000 Instant Ticket Games Monthly Sales Unadjusted Non Fiscal Year September 2015 through August 2018 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $- September October November December January February March April May June July August Sept17-Aug18 Monthly Sales $260,549,479 $265,713,468 $327,135,114 $278,942,942 $326,729,624 $272,342,241 $299,683,864 $300,520,215 $368,184,652 $278,911,892 $269,195,152 $335,134,078 Sept16-Aug17 Monthly Sales $257,132,139 $265,447,444 $328,268,756 $285,299,842 $337,750,779 $261,819,580 $273,938,994 $271,288,398 $360,247,336 $272,201,069 $269,014,241 $336,603,290 Sept15-Aug16 Monthly Sales $268,528,759 $265,696,270 $341,915,759 $303,381,685 $332,514,211 $273,653,324 $282,292,164 $273,801,609 $364,438,626 $278,450,284 $266,714,737 $328,303,282 Month Ending 17

18 Monthly Sales $120,000,000 Keno Game Monthly Sales Unadjusted Non Fiscal Year September 2015 through August 2018 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $- September October November December January February March April May June July August Sept17-Aug18 Monthly Sales $71,304,919 $73,036,564 $94,907,202 $80,024,061 $93,795,926 $80,282,794 $82,733,382 $80,117,255 $101,256,429 $77,960,158 $76,449,245 $98,856,161 Sept16-Aug17 Monthly Sales $67,170,283 $67,903,575 $87,121,263 $71,379,200 $86,695,983 $73,079,093 $75,553,888 $74,943,381 $91,798,292 $70,195,149 $70,200,002 $88,375,116 Sept15-Aug16 Monthly Sales $65,938,626 $67,205,726 $87,688,787 $71,686,031 $84,543,773 $72,830,251 $72,909,013 $72,728,510 $88,960,245 $68,032,704 $64,325,978 $81,509,977 Month Ending 18

19 Monthly Sales $5,000,000 All or Nothing Game Monthly Sales Unadjusted Non Fiscal Year September 2015 through August 2018 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- September October November December January February March April May June July August Sept17-Aug18 Monthly Sales $784,151 $699,384 $859,732 $739,477 $845,234 $715,146 $720,855 $686,928 $888,139 $694,472 $759,294 $1,043,143 Sept16-Aug17 Monthly Sales $1,837,867 $1,328,770 $1,425,445 $959,434 $1,091,127 $1,060,185 $938,145 $799,596 $938,981 $844,782 $878,865 $1,135,981 Sept15-Aug16 Monthly Sales $- $- $- $- $- $- $- $- $- $- $3,316,397 $4,313,187 Month Ending 19

20 Monthly Sales $2,000,000 Jackpot Poker and All or Nothing Games Monthly Sales Unadjusted Non Fiscal Year September 2015 through August 2018 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 All or Nothing $800,000 $600,000 $400,000 $200,000 $- Jackpot Poker September October November December January February March April May June July August Sept17-Aug18 A.N. Monthly Sales $784,151 $699,384 $859,732 $739,477 $845,234 $715,146 $720,855 $686,928 $888,139 $694,472 $759,294 $1,043,143 Sept16-Aug17 A.N. Monthly Sales $1,837,867 $1,328,770 $1,425,445 $959,434 $1,091,127 $1,060,185 $938,145 $799,596 $938,981 $844,782 $878,865 $1,135,981 Sept15-Aug16 J.P. Monthly Sales $178,966 $177,892 $216,348 $158,805 $190,315 $182,688 $158,612 $162,934 $179,435 $127,418 $- $- Month Ending 20

21 Monthly Sales $35,000,000 Numbers Game Monthly Sales Unadjusted Non Fiscal Year September 2015 through August 2018 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- September October November December January February March April May June July August Sept17-Aug18 Monthly Sales $24,533,112 $24,874,264 $31,519,969 $25,413,239 $29,699,634 $25,259,961 $25,246,517 $25,700,711 $31,749,551 $25,053,206 $24,490,722 $31,190,101 Sept16-Aug17 Monthly Sales $24,561,460 $24,620,633 $31,043,731 $25,431,191 $30,775,435 $24,770,610 $25,275,749 $25,497,065 $31,690,710 $24,649,541 $24,465,891 $30,736,469 Sept15-Aug16 Monthly Sales $24,581,151 $24,578,629 $31,596,253 $25,969,168 $30,751,904 $25,666,264 $25,856,638 $25,642,934 $31,964,051 $25,237,447 $24,212,146 $30,882,627 Month Ending 21

22 Monthly Sales $9,000,000 Mass Cash Game Monthly Sales Unadjusted Non Fiscal Year September 2015 through August 2018 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- September October November December January February March April May June July August Sept17-Aug18 Monthly Sales $6,226,521 $6,264,886 $7,868,552 $6,384,027 $7,798,092 $6,348,169 $6,307,946 $6,444,685 $7,994,227 $6,373,279 $6,916,066 $8,447,576 Sept16-Aug17 Monthly Sales $5,970,023 $5,954,338 $7,437,632 $6,209,782 $7,534,299 $5,987,492 $6,113,012 $6,146,061 $7,653,772 $6,068,129 $5,948,156 $7,667,798 Sept15-Aug16 Monthly Sales $5,842,616 $5,862,879 $7,401,889 $6,018,179 $7,800,528 $6,451,061 $6,422,290 $6,259,710 $7,768,135 $6,108,309 $5,949,930 $7,618,003 Month Ending 22

23 Monthly Sales $3,000,000 Megabucks Doubler Game Monthly Sales Unadjusted Non Fiscal Year September 2015 through August 2018 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- September October November December January February March April May June July August Sept17-Aug18 Monthly Sales $1,512,736 $1,551,952 $2,047,615 $2,270,338 $2,220,653 $1,146,212 $1,261,614 $1,287,612 $1,608,429 $1,120,794 $1,211,549 $1,624,032 Sept16-Aug17 Monthly Sales $1,566,341 $1,610,177 $2,136,411 $2,238,197 $2,363,779 $2,054,585 $1,409,920 $1,165,475 $1,562,843 $1,342,458 $1,374,517 $1,961,802 Sept15-Aug16 Monthly Sales $1,646,438 $1,719,557 $2,312,527 $2,371,758 $2,715,960 $2,087,143 $1,233,433 $1,284,347 $1,705,330 $1,478,062 $1,513,881 $1,907,536 Month Ending 23

24 Monthly Sales $3,000,000 Lucky for Life Game Monthly Sales Unadjusted Non Fiscal Year September 2015 through August 2018 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- September October November December January February March April May June July August Sept17-Aug18 Monthly Sales $1,848,784 $1,853,560 $2,232,798 $1,963,724 $2,248,644 $1,838,946 $2,020,380 $1,864,948 $2,295,146 $1,828,500 $1,830,989 $2,349,164 Sept16-Aug17 Monthly Sales $1,852,494 $1,903,010 $2,328,274 $2,031,316 $2,360,732 $1,813,760 $1,973,906 $1,882,964 $2,307,906 $1,844,764 $1,841,290 $2,380,590 Sept15-Aug16 Monthly Sales $2,029,908 $2,021,366 $2,520,803 $2,264,116 $2,496,400 $1,939,872 $1,965,948 $1,933,080 $2,511,942 $1,969,134 $1,921,397 $2,385,674 Month Ending 24

25 Monthly Sales $20,000,000 Mega Millions Game Monthly Sales Unadjusted Non Fiscal Year September 2015 through August 2018 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- September October November December January February March April May June July August Sept17-Aug18 Monthly Sales $3,477,126 $2,964,417 $6,105,169 $9,586,572 $10,743,128 $6,111,340 $16,711,105 $4,918,463 $5,944,453 $6,465,820 $17,190,511 $6,627,342 Sept16-Aug17 Monthly Sales $3,799,974 $3,154,921 $4,040,911 $4,092,354 $5,454,116 $3,290,421 $4,506,419 $3,070,678 $3,870,438 $4,478,634 $6,227,118 $9,564,398 Sept15-Aug16 Monthly Sales $4,024,319 $4,453,797 $6,877,119 $5,449,201 $5,394,327 $4,283,740 $3,363,281 $3,655,927 $7,411,826 $14,622,208 $11,808,285 $4,577,251 Month Ending 25

26 Monthly Sales $80,000,000 Powerball Game Monthly Sales Unadjusted Non Fiscal Year September 2015 through August 2018 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- September October November December January February March April May June July August Sept17-Aug18 Monthly Sales $5,461,592 $6,183,263 $6,882,079 $12,755,854 $14,747,567 $8,221,513 $10,991,073 $5,914,486 $9,027,129 $5,300,630 $6,107,036 $7,762,706 Sept16-Aug17 Monthly Sales $6,393,920 $5,959,329 $14,169,749 $5,599,470 $8,074,568 $15,822,474 $5,327,739 $4,854,401 $13,236,099 $12,345,763 $6,949,704 $34,456,871 Sept15-Aug16 Monthly Sales $12,467,307 $5,268,723 $6,796,855 $14,315,141 $73,668,498 $8,488,686 $5,280,054 $8,518,134 $12,422,527 $7,426,205 $17,017,626 $7,379,166 Month Ending 26

27 Monthly Sales $600,000,000 All Games Monthly Sales Unadjusted Non Fiscal Year September 2015 through August 2018 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $- September October November December January February March April May June July August Sept17-Aug18 Monthly Sales $375,698,420 $383,141,758 $479,558,230 $418,080,234 $488,828,502 $402,266,322 $445,676,736 $427,455,303 $528,948,155 $403,708,751 $404,150,564 $493,034,303 Sept16-Aug17 Monthly Sales $370,284,501 $377,882,197 $477,972,172 $403,240,786 $482,100,818 $389,698,200 $395,037,772 $389,648,019 $513,306,377 $393,970,289 $386,899,784 $512,882,315 Sept15-Aug16 Monthly Sales $385,238,090 $376,984,839 $487,326,340 $431,614,084 $540,075,916 $395,583,029 $399,481,433 $393,987,185 $517,362,117 $403,451,771 $396,780,377 $468,876,703 Month Ending 27

28 Monthly Sales $140,000,000 Monthly Net Profit September 2015 through August 2018 (Estimated Figures for June and August 2018) $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $- September October November December January February March April May June July August Sept17-Aug18 Monthly Sales $76,841,827 $72,258,816 $95,626,330 $98,399,359 $81,233,852 $68,602,971 $65,586,495 $87,487,165 $99,021,314 $41,969,506 $80,970,105 $107,811,578 Sept16-Aug17 Monthly Sales $69,657,349 $87,242,409 $108,339,712 $94,341,505 $105,646,645 76,540,597 $70,657,044 $47,017,246 $112,022,390 $56,808,328 $96,754,213 $108,446,664 Sept15-Aug16 Monthly Sales $73,374,852 $106,500,668 $86,113,138 $91,913,902 $125,334,875 $50,967,118 $61,238,053 $90,935,449 $86,585,674 $59,872,410 $90,162,126 $107,647,430 Month Ending 28

29 MASSACHUSETTS STATE LOTTERY COMMISSION (MSLC) TECHNOLOGY MODERNIZATION PROGRAM MSLC Commission September 17, 2018 Host Project Executive Status Status Reported as of 8/14/15 29

30 MSLC Modernization Program Overview and Key Benefits Purpose $65M Modernization Program that upgrades the lottery host system, terminal application, agent terminals, and multi-media solution as well as components that support business intelligence, helpdesk, asset tracking and field services activities Key Benefits: Continued unrestricted local aid to Commonwealth Cities and towns The Legacy host and core terminal application are being updated to modern technology that have the ability to support online lottery once approved by Legislation The new system will provide MSLC with better insights into how to better integrate lottery products with social media Segregation of host from Agent location hardware and software Paradigm shift - multiple vendors reduces reliance on a single company and creates new business models and flexibility for MSLC Other states interface with 1 vendor where MSLC interfaces directly with the customer Reduces maintenance costs by replacing 20+ year old terminals and data centers with new technology 9/17/2018 The Massachusetts State Lottery Commission provides ~ $850M- $1B annually in unrestricted aid to Commonwealth cities and towns. 30

31 Key Accomplishments IGT supported Customer Acceptance Testing (CAT) has started Legacy terminal decommissioning nearly completed Terminal Replacement Project at 99%: 7,921of the 7,950 legacy terminals have been replaced ahead of schedule across the Commonwealth and have been in use by MSLC approved Agents since Summer 2017 Continued proactive and forward progress on ADA solutions and partnership with the MA Commission for the Blind (MCB) Preparing procurement for 3rd Party ADA Testing in concert with MCB Focused, dedicated Cyber Security efforts have been implemented over the last 12 months Strong support received from EOTSS Investment Board Successful Terminal Emulation Phase completed with 3 rd Party Terminals Controlled roll out of new software and hardware to reduce risk of a big bang implementation Achieved a diversified vendor pool for Agent terminals All vendor hardware was received before June 30 (includes vendor terminals needed for deployment) Includes: 8,000 + terminals, Ticket Checkers, Replacements for Aging Player Activated Terminals Achieve approximately a 95% spend against the planned FY18 Capital allotment FY19 Capital Planning underway 9/17/2018 Commission Approved Consulting Subject Matter Experts Onboarded Fall 18 to Manage Key Program Risks and Develop Risk Mitigation Plans for Program Activities 31

32 MSLC Risk Assessment of IGT s Implementation Plan Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr IGT Plan Actual Duration Requirements Phase; Sept 17 Jan Key Challenge: Requirements Phase has stretched into Sept. Vendor had Planned a Jan 12 th 18 completion. IGT states no impact to the overall schedule as software development started on time and continues in parallel - 99% Complete - Legacy Terminal Decommissioning Prior Legacy Terminal Replacement Project Risk Mitigated: 7921 of 7950 Legacy Terminals Decommissioned IGT Software Development Vendor Software Development: Jan-Jul 18 Key challenge: Vendor s metrics indicate that their software development will go longer than planned but maintain that there is no impact to the overall schedule IGT Software Testing Vendor Software Testing: Mar Jul 18 Key Challenge: Vendor s Software Testing Metrics indicate that a fully testable solution will not be ready for MSLC s internal testing, per their schedule - vendor maintains no impact to overall schedule **MSLC started prelim Customer Acceptance Testing last month to help mitigate risk IGT Data Center Design, Build, Test IGT Data Conversion, Migration Activities Feb 2018 Dec 2018 Key Challenge: IGT s metrics indicate that migrated data will not be ready for MSLC to test by the start of MSLC s testing in August vendor maintains no impact to overall schedule MSLC PMO and SMEs are building quality metrics to gage data quality Legend 9/17/2018 Key Risk Item: Vendor does not fully follow Commonwealth and Industry Project Management practices leading to a lack of visibility into their progress and creating a challenge to validate their schedule, reports and status. Milestone is on track no risks Mitigation Plan: Weekly feedback provided to IGT Project Management Commission Approved Subject Matter Expert Consultants conduct ongoing risk assessments of all key risk areas with recommendations delivered to IGT Executive Mgmt. MSLC and Vendor SMEs built original system and have a deep, intimate business/technical knowledge base Potential Schedule Risk Requires Vendor Project Mgmt. Corrective Action MSLC Customer Testing supported by IGT Aug 2018 Jan 19 Parallel Processing Pilot Approach Key Challenge: IGT s software readiness (per their contract) for MSLC CAT presents a potential schedule risk IGT warranty Support Immediate Vendor Executive Corrective Action required. 32