M. Scott Bowen
Position: Michigan Lottery Commissioner
Background:
M. Scott Bowen is originally from Grand Rapids. He most recently served as the director of the Office of the State Employer, a state appointment.
Prior to that, Bowen served as judge of the 62-A District Court in Wyoming until July 2005. Before that he was a partner at law firm McInerney & Bowen and was a founder and partner of Bowen, Distel & Haynes P.L.C.
Bowen also served two terms on the Grand Rapids City Council and was a special assistant attorney general for the Michigan Department of Transportation.
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Retailer: The Lottery is undergoing a major systems upgrade. What changes can Lottery retailers expect in the next 10 months?
Bowen: Retailers will all be receiving new touch-screen terminals. In addition to being easier to use, the terminals will include a 17ll monitor with a customer display screen.
The screen will show transaction amounts, prize amounts and rotating messages such as winning numbers, jackpot amounts, and so on. Self-checker devices, which allow a player to check whether a ticket has won, will be available to players at all Lottery retailer outlets.
MR: How will these changes impact Lottery retailers?
Bowen: The touch-screen terminals will be easier and faster to operate. They will also include more user-friendly help functions, which will allow the retailer to get detailed information to assist in conducting business.
The display screen will allow players to see their ticket purchases, prize amounts and other pertinent Lottery information, and the self-checkers will allow them to confirm—without the assistance of a store clerk—whether they have a winning ticket.
The new thermal printers will mean tickets will be easier to read and there will be fewer paper jams and other printer problems. Also, Club Keno players will have better visuals with the flat-screen monitors.
 MR: How will these changes be implemented?
Bowen: In August, installation of satellite units, necessary for some of the new features, will begin, but this will not affect retailers. They can expect to see technicians at their businesses.
The installation of the new terminals will begin in late October and is scheduled to be completed and fully functional in mid-April 2009. The installations will start in the Detroit area, which has about two-thirds of the terminals in the state, then will move to the west, then north.
Club Keno retailer terminal conversions will start statewide at the same time as the Detroit area.
MR: How does the Michigan Lottery work, from a business point of view?
Bowen: All the details of what the Lottery takes in and spends are laid out in our Annual Report and other financial reports available on the website, www.michigan.gov/lottery, but here’s the big picture.
In 2007 the Lottery took in about $2.3 billion in revenue. About $1.33 billion, or 56 percent, was awarded as prize money.
Our next largest expense is commissions to retailers, which was $172 million or 7.3 percent in FY 2007. Our direct game expenses and operating expenses together total about $100 million, or 4.3 percent.
The rest—31.8 percent in FY07—goes to the School Aid Fund, where it helps our schools provide a better education for Michigan’s children.
MR: Consider an independent convenience store owner who does not currently sell Lottery tickets. What would you tell him about becoming a Lottery retailer?
Bowen: The two main reasons to sell lottery tickets are increased traffic and the fact that lottery tickets are the most profitable item—per square foot of sales space—that you can carry in a store.
I would also explain the commission structure for retailers. Retailers earn 6 percent on all tickets sold and 2 percent on in-store redemptions up to $600.
On winning tickets from $601 to $100,000, retailers earn 2 percent on tickets sold in their stores. Then there are extra incentives, such as $50,000 for the sale of a Mega Millions jackpot-winning ticket.
MR: How does Michigan’s Lottery compare with other state lotteries?
Bowen: Most important to your readers is the fact that the Michigan Lottery pays the highest commission to retailers of any state lottery. We also have a high penetration of lottery retailers, with nearly 11,000 retailers currently.
There’s a great deal of sharing of information and ideas among the various state lotteries. Because each is a single-state monopoly, we aren’t competing with other states, so we work together to share game ideas, marketing approaches and information about lottery technology.
MR: Any other information you would like retailers to know or understand?
Bowen: Just that we hope we are serving their needs and want to know how we can serve and support them better. Retailers are our primary contact with our players, and we count on their partnership to make the Lottery successful.
That’s why we’re making this huge investment in a major system upgrade. It will help our players and make our retailer partners’ jobs easier.
MR: Jennifer Granholm appointed you Lottery commissioner in January of this year. How did you reach your decision about accepting this position?
Bowen: I spoke with Gary Peters and other past commissioners. Every Lottery commissioner I spoke with said it was one of the best jobs they had ever had. It’s a positive and fun atmosphere.
MR: You have run for political office in the past. Any thoughts on running in the future?
Bowen: Right now I’m simply focused on my role as Lottery Commissioner and working to make the Lottery even more successful—improving technology and customer service and seeking ways to raise as much as possible for the School Aid Fund. |
