BACKGROUND: State-run computer lotteries are now 40 years old. Revenue is stagnant. NJ's on-line casino gambling is a relative failure with revenue far below projection. NJ Lottery signed a 15-year contract with Northstar NJ to provide a $1 billion increase over 5 years. On December 23, 2011, a U.S. Justice Department decision confirmed that the sale of lottery products over the Internet by lotteries in United States jurisdictions was legal.

ALTERNATE NFC PROPOSAL: Internet along with mobile NFC (Near Field Communication) devices and state-issued NFC player cards can significantly increase Lottery revenue.. Samsung's extremely popular Galaxy S4 and S5 phones use NFC to connect to other NFC transceivers and to make shopping payments. The new Apple IPhone 6 will have NFC. According to NFC World+ as of May 2014, there are 47 makers of NFC-enabled mobile smartphones with 262 models.
It is proposed to install NFC transceivers at all lottery terminals. Then, using a cell phone app, the player configures his bet and just taps the phone on the Lottery NFC transceiver to transfer the bet from his phone ... no Lottery account is needed. Simple, right! Since the bet is in the cell phone, the player can easily check the numbers played. (Note Illinois residents currently can play Illinois Lottery games on a mobile phone, but only if they set up a "Lottery account" and opt in for the Mobile Device Geo-Location Service to prove that the call was in-state).
All NFC chips have a unique, unalterable serial number imbedded by the chip's manufacturer. A lottery account number using this number could be, if wanted ... not required, established for a specific player. If the bet is "tagged" with this number, winning tickets would be accrued to a known "lottery" account. Players could be notified if winnings are not collected by SMS messaging. Future bets could also be placed using this account, in effect "churning" the winnings.

Most everyone recognizes that the use of  mobile devices has exploded. Mobile phones are everywhere. Lotteries have to be prepared to provide mobile-friendly content to their customers. 
The US has officially become a smartphone nation -- at least, if you ask Nielsen, the research group's latest Digital Consumer Report estimates that 65 percent of all Americans owned one of the devices in 2013. That's a big step up from 44 percent in 2011, and smartphones are now more common than game consoles (46 percent) and digital cable (54 percent). Americans are also increasingly tech-laden, with an average of four devices per person; 29 percent of them have a tablet versus just 5 percent two years ago.

That shift toward mobile is affecting how many spend their free time. Americans spent an average of 34 hours per month using mobile app's and browsers in 2013; that's more time than they spent online with their PCs, which chewed up 27 hours

Each year, about $800 million worth of lottery prizes are not collected, according to gaming officials. That represents about 2% of total prize money awarded.Ticket holders hear that there is there is no jackpot winner, or that the jackpot winner was in another state, and then don’t bother to check to see if their ticket won a lesser prize. And those prizes can be considerable.

According to the NJ state Lottery's latest annual report, some $37.7 million in prizes were forfeited for the fiscal year ending in June 2012, and $38.4 million the year prior.

The RFID Lottery (AKA NFC Near Field Communication) concept enables the creation of an unique account database for Cell/Smart Phone players. This database can be used for marketing and, more importantly, to notify players by text (SMS) messaging that they hold a winning ticket. Frequent players that  take advantage of their unique account have the capability to total winning tickets vs losing tickets for the purpose of IRS credits.

The huge number of cell phone users is creating lucrative opportunities for Lottery Operators. Lottery APP's are being discussed. Besides selling more tickets, RFID Lottery technology helps Lottery Operators collect statistics and demographic information on their ticket buyers, allowing them to better target their marketing. will show you how it works.

Background: New Jersey was the third state to authorize and create a State lottery; it was an instant success, generating about $137 million in the first year (40 years ago). Today the lottery is the fourth largest source of income for the State after income, sales, and corporate taxes, and has gross sales of about $2.6 billion (net $584 million). New Jersey was the first in the nation to allow players to choose their own numbers. This milestone changed the lottery industry forever.

All Lotteries can expand their player-base with RFID electronic mobile phone WIN notification*.Individual player win notification is a tremendous opportunity for lotteries to bring in new consumer groups as well as to excite loyal customers. Everyone wins when the player-base is expanded. Appealing to new consumer groups will generate new business from customers who previously never or rarely bought tickets. .

  • RFID ticket tagging will increase State Lottery revenue, conservatively estimated at 10%
  • RFID tagging will expand the Lottery player-base, which is a tremendous opportunity to bring in new players who previously never or rarely bought tickets, as well as to excite casual players to become regular players.. .
  • RFID tagging would reduce the number of unclaimed tickets (estimated at 2%) as participating ticket holders’ phone numbers are now known.
  • RFID enhances group pools with the use of a group Player Card and the individual ticket tag ID printed on each ticket.
  • RFID's unique, unalterable ID can be used to reclaim misplaced tickets
  • RFIDt icket tagging can reduce queuing a the Lottery terminal by instant recall and playing of last wager entered.
  • RFID ticket tagging allows player to enter their tag number on a PC enquiry to find bets recorded.
  • RFID generates a unique player account that can be queried for non-winning bets for the purpose of IRS issues.
  • RFID encourages non-state players as they will be notified of a winning ticket  even when they are no longer with the State.

Pool Player groups have had issues in the past. Now those who enter a group pool could now have a Players Card card issued for the group, and all tickets purchased for the group will have a unique tag number printed.

Get winning numbers, jackpot info and messages about promotions and Scratchers can be sent to their mobile phone. 

The multitude of games and the frequency of drawings make it difficult for players to determine if they have a winning ticket. This is confirmed by the large amount of unclaimed tickets ($36 million annually in NJ alone). For example, in Pick 3, the ways to win ...more, in the order of payout's from highest to lowest, are:

Straight - Matching all three digits exactly as they are drawn
Wheel - Match all three digits in any order and win the straight payout. 
Box - Matching all three digits in any order.
Pair - A two-digit wager; either the first and second digits, or the second and third (last.)
Split - Also a two-digit wager, but with the first and last digits. 

Unclaimed winnings in Wisconsin, reported by a Lottery spokesperson:  “Either (winners) lost the ticket or they may not have had a full realization that they won. And some of them expire before they can claim (the money). I think that most people who buy tickets would claim them if they knew they were winners”

In VA. a frequent player went to redeem a winning ticket earlier this year in March 2012, he says the clerk gave him $40 for a ticket he later realized was actually worth $600. Then Perez allegedly cashed the ticket and kept the $600. This could be avoided using the RFID Lottery concept.

*Protected by U.S. Patent 8,162,738


Each player will receive a unique account number that is not duplicated in the entire system of US lotteries. Players purchase a $5 RFID Player Card, which electronically “tags” bets with the unique account number. The Player Card’s Tag Number (encoded and printed on the back of Player Card) is also printed on each issued ticket. If a tagged bet wins, the player is instantly notified via a text message or Email, The chip present imost smart phones could also be used as the unique account  number.

Player participation is simple Purchase a Player Card at any Retailer location

1) Make a smart/cell call to the Lottery, which registers the card’s 9-digit Tag Number to the calling phone’s ID number.using caller ID 

2) When buying tickets place the RFID Card in/on the RFID reader, tagging is automatic as long as the card is in the reader’s 4-in RF field. You'll receive an alert immediately after the drawings.if you hold a winning ticket.

The RFID Chip in each Card, with its unique, unalterable ID, has the potential to add features such lost card replacement and account search; and to be used with  proposed Internet Gaming legislation or Kiosk lottery playing. 

Lottery terminal upgrade is easy 

1) Install the RFID Reader 

2) Download application software.

The RFID Card’s unalterable, chip ID is correlated to the printed 9-digit Control Number. The card cannot be counterfeited as the chips unique ID number is set at the time of manufacture. RFID cards are used by Visa/MasterCard and the US Passport office

When a RFID Card is placed on or inserted into the Reader, the chip’s secured ID is read, “tagged” to each bet placed, and sent to the Lottery Host. The upgrade of equipment would be transparent to the current system. Players would opt in with the purchase of a card.

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U.S. Patent 8,162,738 :Domain Registered: 24-Jul-2010 (c) CSTI 2010-2014.This page was last updated September 9, 2016
The RFID lottery scheme involves connecting inexpensive RFID readers to existing Lottery terminals via the USB serial port. The player's card is inserted and all bets placed with the card inserted are associated with that card's secure, unique ID number. If the bet is a winner, the player is instantly notified (eg cell phone text). 

NFC (aka RFID) Provides State Lottery 'Instant Win' 
SMS Text Notification  
Excluding Scratch-Off tickets (or Scratchers) and some games that are drawn several times a day, such as Keno, there are about 203 state games and 12 multiple-state lottery games. With the exception of a game called Kicker that is played in Ohio and Kentucky, all the games allow the player to choose their numbers. Needless to say that selecting your own number has several advantages over the primitive purchase of ready-made numbers. 

In the United States, lotteries are run by 46 jurisdictions: 43 states plus the District of Columbia, Puerto Rico, and (US) Virgin Islands.

Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District Of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington, Wisconsin, West Virginia.

All these states play at least one multiple-state lottery, and except Maine, New Hampshire, Vermont, and North Dakota all of them have their own lottery games.

Jersey Cash 5 is one of the most popular games the Lottery offers. Drawn daily like our Pick 3 and Pick 4 games, Jersey Cash 5 strong sales helped  generate over $64.7 million in support of state educational programs and institutions. 
Pick 6 Since its inception has generated over $7.7 billion in sales. Fiscal year 2010 sales totaled over $81.9 million, and returns to the state equaled more than $34.8 million, 
Sales from Mega Millions reached  $307,096,483 in New Jersey during fiscal year 2010. All in all, 7,688,873 Garden State residents were Mega Millions winners in fiscal year 2010. 
There are two predominant multi-state games in the American lottery industry: Mega Millions and Powerball. 
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RFID Player Card
Verifone RFID/NFC Reader  Model QX-1000

In fiscal year 2010 U.S. lotteries turned over $17.9 billion (net $US) to their beneficiaries. The ten Largest American Lotteries (in total retail sales in $ gross U.S., excluding VLT)

    New York $6.8 billion
    Massachusetts $4.4 billion
    Florida $3.9 billion
    Texas $3.8 billion
    Georgia $3.7 billion
    Pennsylvania $3.1 billion
    California $3.0 billion
    New Jersey $2.6 billion
    Ohio $2.5 billion
    Michigan $2.4 billion

Major US Lottery On-line Vendors install systems into a state with terminals, printers and peripheral equipment, and provide complex communication systems.  A typical gaming systems contract between the Lottery and a Service Provider states that Provider shall be paid an amount equal to 1.6% of gross online ticket sales revenue less cancelled transactions.These vendors are not associated with the RFID Lottery concept, nor do they endorse it.

GTECH Corporate Headquarters, (as of Nov 2011 oprates 20 State lotteries)
GTECH Center
10 Memorial Boulevard
Providence, RI   02903
Ph: 401-392-1000

Scientific Games 750 Lexington Avenue 25th Floor New York, NY 10022 
Ph: 212-754-2233

INTRALOT 11360 Technology Circle Duluth  
Georgia, 30097 Ph: 770 295 2580.

State lotteries have followed remarkably, similar uniform patterns. They begin with a modest number of relatively simple games. Then, due to constant pressure for additional revenues, they progressively expand in size and complexity. This results in the addition a variety of new games making it difficult for the casual player to determine if they have a winning ticket. This is confirmed by the large number of unclaimed tickets ($36 million annually in NJ).

Technology can increase State Lottery revenues. CSTI’s brief survey of NJ lottery players showed a great interest in receiving a cell phone text notification each time they hold a winning ticket.  RFID will offer the industry's best technological solution to meet the instant texting desire of players. In today's changing technology environment it can be presumed that State Lottery operators would want to take infrequent users and to convert them into a more frequent users, as well as persuading frequent players to play even more,

Participating lotteries in North America also witnessed a strong surge in sales, with a first-quarter-on-first-quarter increase in sales for 2012 of 16.3% over the corresponding period of 2011. The increase in North American sales was driven largely by the two block games, Powerball and Megamillions. 
For its part, Powerball saw its sales increase as part of a revamp of the game in answer to calls for bigger jackpots and more chances to win. On the other hand, Megamillions saw a historic $640 million jackpot that led to unprecedented scenes around the US, as players queued for a chance to participate in the biggest lottery jackpot in US history. As a result of these block game developments, several US lotteries enjoyed their best ever first quarters.
RFID is used by transportation and financial systems, as well as  the US Passport Office for passport identification. RFID is proven technology that is currently available, and has been used in many applications for decades. The CSTI inventors are responsible for developing a patented* RFID  solution and the basic technology that will become standard for the lottery industry. It is proposed to use this technology along with electronic winner notification (eg cell/smart phone text messaging) to encourage the large, untapped casual player base to become regular players. 

The Lottery participation rate has matured and peaked over the years among Core and Regular players (those who play weekly or monthly). The Core and Regular player base is gradually declining over the long term. RFID Lottery addresses the large percentage of the population that does not or rarely plays.


Selling Player Cards for a modest $5 should pay for the system upgrade.

1)Cost of RFID Players cards with 3-color printing/chip encoding $1 ea
2)Upgrade lottery machines with RFID/NFC readers $230 ea
3)Upgrade terminal software 
4)Upgrade Host software to provide account storage/winner phone notification
5)Produce evaluation  prototype RFID Reader and test with current Lottery terminal $35,000
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