One of Michigan’s longest-standing lottery suppliers is sticking around a little while longer.
Pollard Banknote, which first entered the state in 1996 as a partner to the Michigan Lottery, recently secured a five-year primary contract from its long-time associate to remain the near-exclusive provider of instant game tickets in the state.
The new deal will see Pollard provide roughly 90% of the Lottery’s instant tickets during the lifetime of the contract.
According to a news release, the initial contract term is five years. However, it comes with the option to renew in one-year increments for up to five additional years.
The global lottery provider will also supply validation pull-tab tickets, as outlined in a second contract with the Michigan Lottery.
Michigan the fastest-growing US lottery by instant ticket sales per capita
Throughout its 28-plus-year relationship with Pollard, the Michigan Lottery has experienced significant growth across several key metrics. One, in particular, is instant ticket sales per capita.
Between the 2013 and 2023 fiscal years, Pollard was also printing approximately 90% of the Lottery’s instant games. In that time, instant ticket sales per capita rose by 182% in the state. Comparatively, the average growth rate for that same period and metric was 66% among US lotteries.
Such rapid growth vaulted Michigan to seventh on the list of highest-performing US lotteries by per capita sales over the same 10-year window.
“We are honored to be selected as the primary supplier of instant game tickets to the Michigan Lottery,” said Doug Pollard, the company’s co-chief executive officer, in the release.
“We deeply value the relationship we have built with both the Michigan Lottery and the communities in which we operate within the state. As a testament to our successful collaboration and efforts to deliver outstanding games and innovative retail solutions into the Michigan market, we take pride in having contributed to four-fold sales growth since the start of our partnership almost 30 years ago. We look forward to continued success and growth in the years to come.”
Online and retail lottery catalogs have grown substantially with Pollard
During its time with Pollard, the Michigan Lottery’s online and retail game portfolio has widened significantly.
In 2022, the Lottery’s first $50 game, $300,000,000 Diamond Riches, leveraged its Scratch FX technology to inject vibrancy into its diamond aesthetic, which the company says helped drive strong sales and player engagement. What’s more, the pair also worked closely to optimize its $20 offering. This revamp involved delivering a diverse selection of games, print, and prize structures to entice a wider customer base.
The move ultimately paid dividends for both sides. Per Pollard data, the lottery’s $20 price point grew 385% between 2013 and 2023; the fastest growing of any lottery for that category.
Pollard has also made significant contributions to Michigan’s core game offering. For example, popular titles Cashword and Wild Time have seen sales increases of 106% and 204%, respectively, from 2013 to 2023.
The company founded in 1906 has supported the retail side of Michigan’s lottery business, too. Over the years, its supplied over 2,300 Lighted Ticket Menu Boards and All-in-ones, Outdoor Fuel Menu Boards, and a variety of dispensers.
Pollard’s presence in the state has played an active role in creating jobs, generating tax revenue, and supporting local businesses. These feats are lifted mainly by the full instant ticket manufacturing facility in Ypsilanti, which employs some 350 Michigan residents. Specifically, the plant produced about seven billion equivalent single size lottery tickets in 2023, including the majority of Michigan’s tickets.
Further, in 2022 alone, Pollard created 475 jobs in the state and generated a total of $51.7 million in economic activity through its Michigan facilities. This, according to research from East Lansing-based Anderson Economic Group.
Success of partnership paying dividends for state’s public schools
In 2023, the state lottery donated at least $1 billion to the School Aid Fund for the fifth consecutive year. Last year’s contribution amounted to $1.3 billion.
Breaking it down further, each dollar spent on a Michigan Lottery ticket in FY 2023 resulted in 27 cents going toward the fund.
Over the last half-decade, donations to the School Aid Fund have totaled $6.2 billion. This includes a record $1.419 billion in 2021.
Since 1972, the cumulative total of donations from the Michigan Lottery stands at over $28 billion.
