50/50 Raffle Sales at University of Phoenix Stadium, Glendale, Ariz.
The success of electronic 50/50 raffles at sporting and entertainment events has meant millions of dollars for charity, and excitement and gratification for fans, along with a nice payday for the lucky winners of half the money raised. Going forward, it will mean even more to the hosting venue or team — a chance to collect new data on those in attendance at events.
The traditional, manual 50/50 raffle is ingrained in the culture of Canada and not unknown in the U.S., where it was most often used to raise money at high school football games with a name drawn out of a hat. The introduction of electronic raffles four years ago changed the game forever. When the Philadelphia Flyers of the National Hockey League charity raised $85,000 in one night for Boston Strong (a charity for victims of the April 20 Boston Marathon bombings), half of which was won by a game attendee, even more teams woke up to something well-known in Canada for years.
Kevin Lovitt, president of Pointstreak 50/50, the leader in the electronic 50/50 raffle technology, said there is more to come. Pointstreak 50/50 has now introduced software that makes it possible to print a QR code on the bottom of each raffle ticket bought. The buyer is then instructed to scan the code, which takes them to the host’s website to enter a name and e-mail address for a second chance to win. Teams have offered various second prizes, like throwing the first pitch at a baseball game or to go on the road with the hockey team.
Other innovations include coupons on the tickets, possibly for a free cup of coffee at Dunkin’ Donuts, he said. “We’re considering doing that. We are in the early stages of that at some places in Canada.” The technology is in place, but the logistics are the issue. For instance, who would sell the sponsorships, the charitable foundation or the team/venue?
“We come from the sports business,” Lovitt explained of the Pointstreak leadership. “We look at the connection with the team. We don’t just sell an electronic printing device and monitor. We help the team.”
Charity is the overriding reason for 50/50 raffles, per law and per practice. “The more organizations work with the charitable foundation, the better off everyone is,” Lovitt said.
In Canada, 50/50 raffles are as common to the event experience as a hot dog and a beer. The Calgary (Alta.) Stampede is the premiere festival client for Poinstreak 50/50. Over 10 days, they will raise $1.4 million, Lovitt said. Drawings are held twice daily during the fair. Traditionally, the Stampede sold raffle tickets in the grandstand only, but this year they added locations throughout the grounds.
But even in Canada, where it’s a cultural norm, the sophisticated electronic 50/50 raffle is not always legal. In fact, Toronto teams and venues are currently trying to get the law changed to allow for an electronic raffle.
Current law only provides for a manual 50/50 in Ontario. Bob Hunter, Maple Leaf Sports & Entertainment, Toronto, said that the organization is working to change legislation because they see that “the electronic 50/50 is so much quicker, so much more efficient.” They have been working for two years through the Alcohol and Gaming Commission to change legislation. It is already legal in Alberta, he noted.
The Toronto Maple Leafs use the manual 50/50 raffle, hosted by a different charitable organization every night. For basketball or hockey, the foundation raffles average $4,000-$5,000 per game. Top dollar during hockey playoffs was $9,000. That’s a far cry from the $120,000-$130,000 pots like those generated for World Junior Hockey Championships. “Someone is walking away with $60,000,” Hunter said.
Besides being a boon to charity, 50/50 raffles add to the excitement of the game for fans. At Wells Fargo Center, Philadelphia, Peter Luukko, CEO, even lets the staff play. They want to give to charity, they believe in the Comcast-Spectacor Charities and Flyers Wives Charities, and they want to win.
The Flyers are averaging $60,000 a game, $2.5 million a season to support charity and add excitement to the game, Lovitt said.
“The key to the whole thing is that the technology gives you the ability to show a running total of the pot on your scoreboard or any other electronic board,” Luukko said. The Flyers market it heavily through the scoreboard and PA system.
“The feedback is tremendous,” Luukko added. “Fans are having fun with it and we’re raising a lot of money for charity. It’s a real feel-good story.”
The Foundation costs include putting in the kiosks and maintaining the technology. They bought the kiosks and the handhelds. Expenses per night average 10-15 percent of the pot, which are taken out of the charity’s half. For the season, fans walked away with $1 million.
Every sport is different. Strategies don’t translate 100 percent. In a hockey game there is a tremendously small window of opportunity to sell — two natural breaks, 18 minutes between periods. Football, with 80,000 fans, has 15 minutes between halves and needs up to 150 sellers. In football, it’s also important to reach out to people in the tailgate area before kickoff. In baseball, sellers can go into the stands.
Five-year-old Pointstreak 50/50 is a division of 12-year-old Pointstreak Sports Technologies, which does statistical work for 3,000 amateur and professional organizations around the world. In October 2011, Pointstreak 50/50 acquired 50/50 Central, which included clients such as the Calgary Stampede.
Today, Pointstreak 50/50 accounts for about 30 percent of the parent company’s business and employs 25 fulltime.
The next frontier for Pointstreak 50/50 is the international front, Lovitt said. He is currently investigating opportunities in Australia and Europe.
Interviewed for this story: Kevin Lovitt, (617) 835-7807; Bob Hunter, (416) 815-5738; Peter Luukko, (215) 389-9530