Quantitative Tennessee Lottery Holographic Test Shows 79% Sales Increase

Holyoke, MA – December 5, 2012 – The Hazen Paper Co. has announced that the results of a quantitative test conducted in conjunction with Scientific Games Inc. and the Tennessee Lottery have been received. 

The Tennessee Lottery recently conducted a controlled quantitative test that was run to compare the sales of one of its core $5 games ($100,000 Jackpot) which had been traditionally produced on conventional board stock with the sales of a holographic version of the same game that utilized an identical ticket value, prize structure and payout percentage. The only significant variable in this comparison was the use of holography.

Sales results were compared by contrasting sixteen weeks of the conventional game’s sales with sixteen weeks of sales of the holographic version of this game. The holographic version was transitioned into the marketplace immediately following the depletion of the conventional version of this game. The results of this comparative test showed that during its initial 16 weeks of sales, the holographic version of this game achieved an index of 179 when compared to its conventional counterpart.

The incremental cost of the holographic board for the tickets sold during this initial 16 week period was fully absorbed when less than a 6% increase in sales (vs. the conventional game) was attained.

The financial impact of the 79% increase in sales that was observed during this 16 week period for the 845,980 holographic tickets that were sold during this timeframe resulted in incremental profitability for the TN lottery of $723,000. 

This increase in profitability can be directly equated to the opportunity benefit resulting from the reduced amount of time required to sell through the holographic tickets vs. the increased amount of time that would have been required to sell a comparable quantity of conventional tickets.

No evidence of cannibalism was observed with the other $5 games being sold by the TN Lottery (or for that matter, with any other instant games of any value being sold by the TN lottery) during this 16 week test period.

It should also be noted that upon the depletion of the holographic game tickets (27 weeks), sales of the holographic version of this game exceeded sales of the plain board version for the same time frame by $1.6 million. 

The following link illustrates the Tennessee game that was used as well as the test results: www.holographyx.com/TN