711 E. Wells Avenue ● Pierre, SD 57501 ● Phone: 605-773-5770 ● Fax: 605-773-5786 ● http://lottery.sd.gov
Request for Information
I. Overview
The South Dakota Lottery (herein referred to as the Lottery) currently has 630 instant ticket retailers, offering from twelve to twenty-four instant games at a time. 620 of these retailers also offer four on-line games, as well. These games include our in-state cash game Dakota Cash (with an EZ Match instant- win component) and three games managed by the Multi State Lottery Association. They include Powerball®, Mega Millions®, and Hot Lotto®. The Lottery will be adding Lucky for Life as its fifth on-line game in the summer of 2017.
Lottery retailers operate the Altura GT-604 Retailer Terminal, including approximately 10 instant-only retailers. The Lottery currently owns its instant ticket management and backoffice accounting system.
This is ACCLAIMS software for an IBM iSeries Power Server running OS400 connected to the central system via TCP/IP. The Lottery’s current contract ends on August 2, 2019.
The Lottery also has 1,345 licensed establishments where approximately 9,000 video lottery machines are located. These machines are all linked to a central computer system in Pierre, SD that collects and accounts for all play transactions via dial-up modem on a daily basis. With the approval of the Lottery Commission, video lottery machines offer various combinations of games. These include poker, black jack, keno, bingo, and line games. Players may wager from 1 cent up to a maximum of $2.00 per game.
The maximum amount that can be won per game is $1,000. Video lottery machines currently use VLCS- Version D and SAS protocols and are monitored through the use of DX Site Controllers and Multi-drop Connectivity Devices. The Lottery operates on a twice monthly billing cycle for video lottery for video lottery operators.
See the chart on the final page showing the annual sales figures for all lottery products.
II. Important Dates and Contact Information
The Lottery is initiating this approach to the “Request for Proposal” (RFP) process by inviting vendor comments and suggestions through this RFI. It is our intention to consider vendor responses to this RFI in the development of a multifaceted RFP that will result in the most cost-effective and responsive proposal for each section or combination of sections listed. Vendors are invited to respond with information pertaining to either the On-line System or the Video Lottery System, or both.
Listed below are specific system and operational areas for which the Lottery requests vendor information and recommendations. Responses should be made to all areas listed in Section 3 items A through O that relate to that particular vendor’s product and service specialties and should be based on technological feasibility and cost effectiveness. We ask that all interested vendors submit their responses in writing to this RFI no later than 4:00 PM June 30th, 2017. Responses should be brief and to the point.
The Lottery will meet with interested vendors in South Dakota to hear presentations, review product and
equipment demonstrations, and discuss the vendors’ ideas for system and service alternatives. Meetings can be scheduled from August 1, 2017 through September 28, 2017. The meetings are intended to provide an open and constructive dialogue on the systems and services listed above as well as the areas detailed below. Please contact Justin Pierson at (605) 773-5770 to schedule a meeting date and time, as well as to arrange delivery of vendor demonstration equipment.
Ten hard copies plus one electronic copy should be directed to:
Norm Lingle Executive Director South Dakota Lottery
711 E. Wells Ave Pierre, SD 57501
III. Seeking Information
The Lottery is issuing this “Request for Information” (RFI) for the purposes of exploring its options as they relate to the following systems and services:
A. On-Line Central Computer System
The Lottery desires a reliable system provided by the vendor to include all staff, equipment, communications, hardware, software, supplies and related services to operate and maintain on-line lottery games and scan and validate bar-coded instant lottery tickets. The system must comply with all requirements imposed by the state of South Dakota and the Multi State Lottery Association. The Lottery requests a description of the system’s capabilities and features, including the ability to add new on-line games, the ability to change existing game characteristics, and whether the system is capable of working effectively with the Lottery’s current backoffice system. Finally, the Lottery requests a comparison showing the advantages and disadvantages of the administration/operation controls, efficiencies of operation, security and audit controls and relative costs between an out-of-state and an in-state central computer facility.
B. Communications Network
The Lottery is interested in a cost effective, technically sound communications network to support the efficient sale and validation of on-line tickets and the validation and pass-through of instant ticket information to and from the current or new instant backoffice system. Please provide your recommendations regarding vendor, lottery, and third party management responsibility for an on-line communications network. Please describe the various types of communication technology (including but not limited to VSAT and dial-up) with their associated advantages and disadvantages, and make a recommendation as to which is best suited to South Dakota.
C. On-Line Retailer Terminals
The Lottery requests information relating to on-line retailer terminals:
1. Describe the terminal’s capabilities for supporting the instant game, including scanning, validating,
ticket and pack management, sign-on, report generation and any other features it might offer.
2. Please relate costs and benefits of any special marketing features of your on-line terminals, including LED’s, monitors, and other signage, which may be used to support advertising and promotional efforts.
3. Describe any other marketing, research, or strategic planning services and products offered.
4. The Lottery is also interested in the vendor’s ability to offer multiple clerk stations within a single retail location, i.e. a single on-line terminal with multiple clerk stations.
5. Describe the capabilities of terminals to support promotions, including (but not limited to) buy X get Y, every Nth, and retailer/chain specific promotions.
6. Please include information on the possibility of utilizing different levels of terminals based on sales volume of locations and what the differing functionalities of those terminals would be.
D. Instant Ticket Only Retailer Terminals
Please describe the options for Instant only retailer terminals. Discuss whether unique terminals would be necessary or if the system simply allows for the disabling of on-line functions on the standard terminals.
E. On-Line System Conversion Plans and Support
Please describe your experience and recommendation in the following areas:
1. Development and implementation of a conversion plan for new terminals at retail locations. What would the Lottery’s involvement in this process be?
2. Retailer and staff training for the new terminals. What would the Lottery’s role in this training be?
3. Anticipated recommended time frame from the date of an executed contract to conversion.
F. Instant Ticket Management and Backoffice System Capabilities
Please provide specific information relating to the capabilities of your on-line system as they relate to the following areas:
1. Instant ticket validations – multiple prize levels, merchandise prizes, annuity or multiple payment prizes.
2. Instant ticket inventory management, instant game launches, automatic ticket reorders.
3. Retailer accounts receivable, billing, and electronic sweep notification capabilities for both on-line and instant game activity.
4. Retailer portal for reports, billing information, etc.
5. Management portal
6. The ability to send terminal messages to retailers.
7. Combined on-line and instant game sales reporting.
8. Business Intelligence and analytics.
9. State of the art sales force automation system capable of enhancing the selling experience for sales representatives and retailers.
G. Mobile Devices and Mobile App
Please discuss the support provided for mobile devices and mobile apps as it relates to:
1. The ability for customers to purchase tickets via a mobile device while they are within the Geo- fenced footprint of a retailer.
2. The system’s ability to accommodate players scanning and validating on-line and instant tickets through the Lottery’s app on their mobile devices.
3. The ability for terminals to scan bar codes and QR codes from the screens of players’ mobile devices.
4. Any mobile app features that would improve the player’s experience and drive additional revenue.
H. Vending Machines
Please discuss the feasibility of instant ticket vending machines, player activated on-line terminals, and/or single machines that offer both products. Please include the capabilities as they relate to age verification.
Also provide any suggestions for machine placement in video lottery establishments.
I. Terminal Generated Instant-Win Games
Please provide information on any terminal generated instant-win games that may be available.
J. Monitor Games
Please provide information on available on-line monitor games including comments and/or concerns to competition with the existing video lottery terminals.
K. Player Rewards Program
Please discuss the feasibility of a player rewards program for all products offered by the Lottery. How might the Lottery include all of its products in the program (instant, on-line, and video)? Discuss how it could work in conjunction with our current Play It Again/Second Chance program.
L. Video Lottery Central System
The video lottery central system currently operated by the South Dakota Lottery is used primarily to collect play transaction and accounting data on a daily basis and process it for billing and reporting purposes. It is also used to maintain video lottery terminal ownership and location information used to enroll, enable and disable each terminal as required.
1. Please provide specific information relating to the capabilities and features of your video lottery system, such as those mentioned in the paragraph above.
2. Describe the type of workstation hardware and operating system best suited for connecting to your video lottery central system.
3. Discuss the ability for the new system to collect and process data from the existing family of video lottery terminals in the South Dakota market without the need for enhancements or modifications to those same terminals. Include information on the number and types of protocols currently supported as well as the effects on system performance as it relates to the use of multiple protocols.
4. Discuss the ability for the new system to support e-gaming, skill-based games, server-based games, and progressive jackpots.
5. Describe the management information features available, the ease of customizing or generating additional reports, and the processing speed/time for reports. Also describe the management portal used by the system and its capabilities.
6. Should a vendor have the capability of providing a comprehensive system with modules for video, on-line, and/or instant, please provide a comparison showing the advantages and disadvantages of the administration/operation controls, efficiencies of operation, security and audit controls and relative costs between an out of state and an in state central computer facility.
7. Provide information on a possible Operator Portal or other means for private operators to access their own data and generate reports.
8. Discuss the options for a potential system of ticket validation by scanning for establishments.
Consider that many of the oldest terminals in the field print only tickets with printed validation numbers as they are incapable of printing bar codes.
9. Please provide information on any Player Management System that may be an option with the system.
10. Describe the business intelligence and analytics capabilities of the system.
M. Video Lottery System Conversion
Please discuss the process and the Lottery’s involvement in the conversion process as it relates to the following items:
1. The feasibility of converting data from the current system to the new one. Include in the discussion the potential for degradation of the new system, the effects it would have on the speed and reliability of the system, and the ability to maintain seamless, continuous reporting at the point of conversion (will the transferred data require extensive re-formatting for reports to be accurate and reliable when querying over the transition period).
2. The implementation and installation of any needed on-site controllers and connectivity devices.
3. Training and support for staff and operators on any new hardware or software.
4. Anticipated recommended time frame from the date of an executed contract to conversion.
N. Video Lottery Communication System
The Lottery currently uses a cost-effective, secure, and reliable dial-up system to communicate to terminals via phone lines. Please describe the various types of communication technologies (including but not limited to IP Cell and DSL) with their associated advantages and disadvantages, and make a
recommendation as to which is best suited to South Dakota.
O. Upgrades and Future Technology
Discuss how upgrades and access to future innovations in technology are typically handled in contracts, including examples from other jurisdictions. Discuss the current outlook in terms of upcoming technologies and the frequency of upgrade releases.
P. Miscellaneous
Responses to this section are optional. Vendors may address any other feature or advantage they can provide that is deemed relevant for possible consideration by the Lottery.
