NeoPollard Interactive LLC (“NeoPollard Interactive”)congratulates the Michigan Lottery on the successful launch of its online game services portfolio. The online game services—developed, implemented, and supported by NeoPollard Interactive—allow Michigan residents to play interactive instant games and a version of Keno over the internet on personal computers, tablets, and smart phones.

The Michigan Lottery estimates the online games will increase the revenues it provides to the state’s schools by approximately $480 million over the next eight years. A soft launch last November came after a “beta test” period that began in August. The testing wasn’t supported by traditional media, promotions, or incentives. Rather, visitors to the Lottery’s website were introduced to the online games option by a “buy online” tab added to the Michigan Lottery’s homepage. The soft launch included a variety of promotional programs.

Since the soft launch, online game services sales have grown steadily with February sales contributing $0.30 per capita per week on average to overall Lottery sales. Online game sales in February represented approximately 10% of comparative retail category sales of instant tickets and club games. That level is more than triple the percentage representation expected in the Lottery’s first year projections.

Currently, Michigan Lottery players may choose from 15 online games with eight games optimized for mobile device play. NeoPollard Interactive champions the importance of having an omni‐channel presence and the growing positive response to the Michigan Lottery’s online games portfolio supports this strategy. Preliminary results show the average online game player in Michigan is younger than the average player who buys instant games at retail. Also, about 40% of the online game players use mobile devices,underscoring the importance of offering multiple sales channels. While online games broaden the Michigan Lottery’s player base, retail channels are experiencing concurrent growth.

“NeoPollard Interactive is proud to be a part of the online game services initiative in Michigan,” said Doug
Pollard, Co‐Chief Executive Officer, NeoPollard Interactive. “In addition to increased revenues for the
state’s School Aid Fund, the new services also have created 40 new jobs for Michigan residents, and this
number is expected to grow.”
“We are delighted to be a part of the most successful online gaming venture in the United States to date.
The Michigan Lottery’s beta test strategy followed by a soft launch and their combined success
demonstrate how a strategic approach and a strong vendor relationship can propel sales forward,” noted
Ilan Rosen, Co‐Chief Executive Officer, NeoPollard Interactive. “We look forward to continuing to work
with the Lottery to further optimize sales across all available channels by offering Michigan residents more
entertainment opportunities to support public education in the state.”
The Michigan Lottery has contributed nearly $19 billion to support public education since 1972. In the
2014 fiscal year, the Lottery contributed $742.8 million to the state School Aid Fund, the eighth year in a
row that it contributed more than $700 million.