FEBRUARY 20, 2015 COMMISSION REPORT

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1 FEBRUARY 20, 2015 COMMISSION REPORT

2 Table of Contents Notice of Public Meeting... 3 Commission Minutes January 23, Agency Reports... 8 Director's Report... 8 Audit Report... 8 MONOPOLY MILLIONAIRES CLUB Update... 8 Low-Tier Jackpot Commercials... 8 New Games Introduction... 8 Events/Sponsorships New Business Item # Instant Scratch Game Profiles

3 NOTICE OF PUBLIC MEETING AND EXECUTIVE SESSION OF THE ARIZONA STATE LOTTERY COMMISSION Pursuant to Arizona Revised Statute (A.R.S.) , notice is hereby given to the members of the Arizona State Lottery Commission and to the general public that the Arizona State Lottery Commission will hold a meeting open to the public on February 20, at 10 a.m., in the Arizona Lottery Board Room located at 4740 East University Drive, Phoenix, Arizona. Pursuant to A.R.S (B), notice is hereby given to the Arizona State Lottery Commission and members of the public that the Arizona State Lottery Commission may vote to go into Executive Session, which will not be open to the public, for the purpose of obtaining legal advice pursuant to A.R.S (A)(3) regarding any of the agenda items, as well as for the purposes listed on the agenda under Executive Session. The Commission may also vote on any item listed on the agenda. One or more members of the Commission may participate by means of telephonic communication. Call to Order 1. Call for Quorum 2. Call for Notice 3. Approval of Minutes for January 23, 2015, Public Meeting Agency Reports 1. Director's Report 2. Audit Report 3. MONOPOLY MILLIONAIRES CLUB 1 Update 4. Low-Tier Jackpot Commercials New Business 1. Discussion and Action on new instant scratch game profiles: Crossword Party #978, and Red Hot 7s #979. Call to the Public Consideration and discussion of comments from the public. Those members of the public wishing to address the Commission need not request permission in advance and will be given approximately five minutes for their comments and requests. Action taken as a result of public comment will be limited to directing staff to study the matter or 1 The MONOPOLY name and logo, the distinctive design of the game board, the four corner squares, the MR. MONOPOLY name and character, as well as each of the distinctive elements of the board and playing pieces are trademarks of Hasbro for its property trading game and game equipment. 1935, 2014 Hasbro. All Rights Reserved. Licensed by Hasbro. 3

4 rescheduling the matter for further consideration at a later date to comply with A.R.S Announcements The next Commission meeting will be held March 20, 2015, at 10:00 a.m. Adjournment Materials A copy of the agenda and background material provided to Commission members, which is not exempt by law from public inspection, is available for public inspection at least 24 hours in advance of the meeting at the Lottery Office located at 4740 East University Drive, Phoenix, Arizona. Notice Any amendments or additions to the agenda will be made available at least 24 hours prior to the meeting. Dated this 18 th day of February, 2015 Tony V. Bouie Executive Director Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by calling (480) Requests should be made as early as possible to allow time to arrange the accommodation. 4

5 PUBLIC MEETING OF THE ARIZONA LOTTERY COMMISSION MINUTES JANUARY 23, 2015 PRESIDING Chair Jeff Weintraub COMMISSIONERS Frank Conley, Chip Scutari, and Andy Anderson LOTTERY Jeff Hatch-Miller, Executive Director; Jessica Reimann, Director of Marketing & Advertising; Adam O Kane, Director of Accounting, Audit, and Procurement; and Raynie Hosto, Director of Sales; and Steve Johnson, Director of Information Technology Barbara Anderson, Cindy Esquer, Pam DiNunzio, Bianca Sanders, Brett Moulton, Michael Federico, Marc Harlow, Shelby Nowak, and Jacqui Ayala GUESTS PUBLIC LaneTerralever Representatives: Todd Bresnahan, Isabelle Jazo, Joe Ray, Kirstin Jones, Zac Fox, and Leigh Dow GTECH Representatives: Russ Harben and Serena Arlotta Attorney General Representatives: Deanie Reh Nick Schell, Janet Rachfal, Linda Wright, and Brent Steffens Call to Order Pursuant to the Public Notice dated January 22, 2015, the Public Meeting of the Arizona State Lottery Commission was called to order at 10:00 a.m. by Chair Weintraub. A quorum was present. Upon request by Chair Weintraub, Commissioner Scutari made a motion to approve the minutes of the December 19, 2014, meeting; Commissioner Anderson seconded. All members voting aye, motion carried. Upon request by Chair Weintraub, Commissioner Anderson made a motion to approve the minutes of the December 19, 2014 Executive Session, Commissioner Scutari seconded. All members voting aye, motion carried. State Service Recognition Director Hatch-Miller provided a Retirement award to Janet Rachfal thanked her for 28 years of service. Retailer of the Quarter Michael Federico, Territory Manager recognized Albertsons 951 in Yuma as Retailer of the Quarter. He said this store has done exceptionally well with promoting our products noting that their out of stocks were a very impressive 0.5%. Director s Report Director Hatch-Miller presented a PowerPoint overview of the Director s Report. The Director s Report is attached for the official minutes. 5

6 New Business Chair Weintraub asked if any members of the public would like to address the Commission regarding amended instant scratch game profile: MONOPOLY MILLONAIRES CLUB 1 #964 and new instant scratch game profile, Crossword Deluxe #977. No response from the public. In accordance with A.R.S (C), Chair Weintraub entertained a motion to approve the order and authorize the Director to issue the order regarding amended instant scratch game profile: #964 and new instant scratch game profile, #977. Vice-Chair Conley moved; Commissioner Anderson seconded. Chair Weintraub asked for an update on Monopoly. Ms. Anderson showed the Commission the revised artwork, she said they have made some changes to make it fall more in line with the TV Game show rather than the draw game. She explained what we are asking the commission to approve today is the revised prize structure. She said some of the top prizes have been taken out of the game to in order to help pay for the cost of producing the game show. Chair Weintraub asked what has transpired since the last meeting. Ms. Anderson said the states have been working very closely to create this bridge game. She said we are very close to having final agreements in place. Chair Weintraub asked if Texas was participating. Ms. Anderson said that Texas is probably out. Chair Weintraub asked what the financial impact would be to Arizona s Lottery. Ms. Anderson said this will help reduce our financial liability on the production of the game show. Chair Weintraub asked what we could expect to see by the end of November. Ms. Anderson said we hope this will put us on the plus side because Monopoly has always been very successful as a scratch ticket. All members voting aye, the motion carried. Chair Weintraub asked if any members of the public would like to address the Commission regarding amended Instant Tab Game Profiles: Support The Troops #041, and AZ Jackpot #045. No response from the public. In accordance with A.R.S (C), Chair Weintraub entertained a motion to approve the order and authorize the Director to issue the order regarding amended Instant Tab Game Profiles: #041 and #045. Commissioner Scutari moved; Vice-Chair Conley seconded. All members voting aye, the motion carried. Call to the Public Chair Weintraub invited members of the public to speak before the Commission. No one from the public requested to speak. 1 The MONOPOLY name and logo, the distinctive design of the game board, the four corner squares, the MR. MONOPOLY name and character, as well as each of the distinctive elements of the board and playing pieces are trademarks of Hasbro for its property trading game and game equipment. 1935, 2014 Hasbro. All Rights Reserved. Licensed by Hasbro. 6

7 Announcements The next Commission meeting will be held February 20, 2015, at 10:00 a.m. Adjournment Upon request by Chair Weintraub, Vice-Chair Conley moved; Commissioner Anderson seconded. All members voting aye, motion carried. Meeting adjourned at 10:32 a.m. Materials A copy of the agenda and background material provided to Commission members, which is not exempt by law from public inspection, is available for public inspection at least 24 hours in advance of the meeting at the Lottery Office located at 4740 East University Drive, Phoenix, Arizona. Notice Any amendments or additions to the agenda will be made available at least 24 hours prior to the meeting. 7

8 Agency Reports Report to Arizona Lottery Commission February 20, 2015 Director's Report (Attachment A) Audit Report MONOPOLY MILLIONAIRES CLUB 1 Update Low-Tier Jackpot Commercials New Games Introduction The following games were introduced since the last commission meeting: I Love Cash #949, Cherry Tripler #952, and The Walking Dead #956. More information on these games is available by visiting the Scratchers section at ArizonaLottery.com The following games were approved to end consistent with the Instant Scratch Game Ending Policy. Players have 180 days from the game-ending date to claim prizes. Date Ended Price Point Game No. Game Name Beginning Inventory % Sold 10/28/14 $ Crazy Wild 10s 1,133, % 11/29/14 $ Crazy Cash Crossword 1,719, % 12/03/14 $5 933 Blackjack 1,259, % 01/03/15 $5 947 Heat Wave 1,259, % 01/06/15 $2 881 Steel 7s/Power 7s 1,508, % 01/15/15 $5 937 Money Tree 1,245, % 02/03/15 $1 877 Triple Payout 1,761, % 02/03/15 $1 906 Aces High 1,761, % 02/03/15 Cash & Carry $5 914 Crossword 4,990, % 02/03/15 $5 922 Cash Club 1,237, % 02/03/15 $1 934 Secret Santa 2,510, % 1 The MONOPOLY name and logo, the distinctive design of the game board, the four corner squares, the MR. MONOPOLY name and character, as well as each of the distinctive elements of the board and playing pieces are trademarks of Hasbro for its property trading game and game equipment. 1935, 2014 Hasbro. All Rights Reserved. Licensed by Hasbro. 8

9 Date Ended Price Point Game No. Game Name Beginning Inventory % Sold 02/03/15 $2 935 Snow Me The Money 1,543, % 02/03/15 Holiday Sweater $3 936 Crossword 2,013, % 02/03/15 $ Holiday Treasures 876, % 02/03/15 $5 945 Tailgate Cash 1,258, % 9

10 Events/Sponsorships Lottery-sponsored events in January: Arizona Chamber of Commerce and Industry - Arizona Chamber Statewide Roadshow Casa Grande Main Street - Historic Downtown Street Fair and Car Show National Association of Asian American Professionals dba Asian Corporate & Entrepreneur Leaders - Asian American Kickoff Celebration City of Flagstaff - Dew Downtown Flagstaff Urban Ski and Snowboard Festival Santa Cruz Valley Car Nuts - Collector Car Show Lottery-sponsored events in February: Cochise Cowboy Poetry and Music Gathering - Cochise Cowboy Poetry and Music Gathering Pima Community College Foundation - Building Community Function Arizona Science Center - Galaxy Gala Grand Canyon Council Boy Scouts of America - Scouting for Food Save the Family Foundation of Arizona - Hearts of Gold Gala Phoenix Chinese Week Festival Mesa Arts Center Foundation - A Hearty Arty Valentine Affair with Molly Ringwald Arizona Youth Partnership - Ragnar Relay Del Sol The University of Arizona Foundation on Behalf of Psychology - Conference on Successful Aging, Finding Balance: Enhancing Physical, Emotional and Social Well- Being Xico, Inc. - Dinner and Art Auction American Cancer Society, Inc. - Flagstaff Denim & Diamonds Southern Arizona Arts and Cultural Alliance (SAACA) - CRUISE, BBQ & BLUES - A fundraiser for creative arts therapy A New Leaf Foundation - Camaraderie Gala/Havana Nights Asian Chamber of Commerce Incorporated - Lunar New Year of the Sheep Big Brothers Big Sisters of Flagstaff - Bowl For Kids' Sake Valle Verde Rotary Club of Green Valley - Jazz Festival Veterans Resource Center - 3 Veterans' Stand Down Events 10

11 ATTACHMENT A 11

12 Arizona Lottery Dashboard January 2015 Fiscal Year 2015

13 Arizona Lottery FY 2015 Sales versus Projections $900,000,000 Total Sales $800,000,000 $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Actual Core Sales Jackpot Lift Projection Projection: 432,718,333 Actual Core: 409,263,055 Jackpot Lift: 0 Total Actual: 409,263,055 Difference: -23,455,278 % Difference: -5.4% * Total sales are 5.4% below projections * The Instant product line (Scratchers & Pull-tabs) at $295,702,755 are 4.2% ahead of projections. * Total draw game sales of $113,560,300 are 23.7% below projections. * The Multi-State draw games are 29.0% below projections; in-state games are 9.7% below projections. D - 1

14 Arizona Lottery FY 2015 Sales versus Projections $60,000,000 Instant Sales $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Scratchers Pull Tabs Projection Projection: 283,885,000 Actual: 295,702,755 Difference: 11,817,755 % Difference: 4.2% $30,000,000 Total Draw Games $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Projection: 148,833,333 Actual 113,560,300 Difference: -35,273,033 % Difference: -23.7% Multi-State In-State Projection D - 2

15 Arizona Lottery FY 2015 Sales versus Projections $18,000,000 Multi-State Games $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Projection: 108,000,000 Actual 76,691,555 Difference: -31,308,445 % Difference: -29.0% Powerball Mega Millions MMC Projection $7,000,000 In-State Games $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun The Pick Fantasy 5 Pick 3 Weekly Winnings All or Nothing Projection Projection: 40,833,333 Actual 36,868,745 Difference: -3,964,588 % Difference: -9.7% D - 3

16 Arizona Lottery FY 2015 versus FY 2014 Total Sales 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY 2014 FY 2015 FY ,263,055 FY ,622,721 % Change -0.1% * Total sales are currently 0.1% below the same period last year. * The Instant product line (Scratchers & Pull-tabs) are 11.8% ahead of last year. * Total draw game sales are 21.8% below the same period last year. * Sales of the multi-state games, Powerball, Mega Millions, and MMC are 27.3% below last year. * Sales of the in-state games are 7.1% below last year. D - 4

17 Arizona Lottery FY 2015 versus FY 2014 $60,000,000 Total Instant Games $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY 2014 FY 2015 FY ,702,755 FY ,432,668 % Change 11.8% 35,000,000 Total Draw Games 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Powerball Mega Millions MMC In-State FY 2014 FY ,560,300 FY ,190,053 % Change -21.8% D - 5

18 Arizona Lottery FY 2015 versus FY 2014 $35,000,000 Multi-State Jackpot Games $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY 2014 FY 2015 FY ,691,555 FY ,509,196 % Change -27.3% $7,000,000 Total In-State Games $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY 2014 FY 2015 FY ,868,745 FY ,680,857 % Change -7.1% D - 6

19 2/13/2015 Arizona Lottery Sales by Product - FY 2015 Month Scratchers Instant Tabs Total Instants Powerball Mega Millions MMC The Pick / EXTRA Fantasy 5 / EXTRA Pick 3 All Or Nothing Weekly Winnings Total Draw Games Total Sales July 38,141, ,216 38,474,637 5,932,896 2,458,072 1,971,135 1,153, , , ,142 13,491,455 51,966,092 August 37,553, ,784 37,901,071 5,711,771 3,904,548 2,124,512 2,060, , , ,328 15,616,408 53,517,479 September 38,701, ,234 39,091,445 7,617,009 2,687,091 2,140,839 1,467, , , ,224 15,545,637 54,637,082 October 41,166, ,260 41,527,797 6,423,910 5,746, ,090 2,220,494 1,306, , , ,738 17,515,743 59,043,540 November 41,751, ,336 42,103,223 6,608,662 3,593, ,100 2,043,090 1,016, , , ,466 15,118,034 57,221,257 December 46,035, ,232 46,466,829 6,237,147 4,179, ,530 2,310,942 1,113, , , ,008 15,788,062 62,254,891 January 49,726, ,958 50,137,753 9,796,514 4,922,777 2,397,329 1,719, , , ,914 20,484,960 70,622,713 February 0 0 March 0 0 April 0 0 May 0 0 June 0 0 YTD Sales 293,076,735 2,626, ,702,755 48,327,909 27,491, ,720 15,208,341 9,837,109 5,482,171 4,174,304 2,166, ,560, ,263,054 YTD Rtlr Commissions 19,049, ,204 19,575,192 3,141,314 1,786,975 56, , , , , ,843 7,381,419 26,956,611 % of Sales 71.6% 0.64% 72.3% 11.8% 6.7% 0.2% 3.7% 2.4% 1.3% 1.0% 0.5% 27.7% 100.0% Avg Mo Sales 41,868, ,146 42,243,251 6,903,987 3,927, ,573 2,172,620 1,405, , , ,546 16,388,942 58,632,192 D - 7

20 Annual Sales Trailing 12 Month Periods (Millions) Twelve Months Ending Actual Goal D - 8

21 2/13/2015 Arizona Lottery Transfers To Other State Funds Month Heritage Game & Fish Healthy Arizona State General Fund Mass Transit LTAF II* Homeless Shelters State General Fund II Arizona Commerce Authority Univ Capital Debt Service Dept of Gaming Automation Projects Fund*** C.A.S.A. Total Transfers July 890,000 1,615,600 7,168,400 1,181,900 61,183 10,917,083 August 905,700 1,638,300 7,631,800 1,133, ,252 11,421,052 **Approp Transfer 300, ,000 September 888,500 1,607,300 7,486,300 1,530, ,076 11,960,576 October 998,600 1,806,200 8,411,900 1,284,000 62,110 12,562,810 November 947,600 1,714,000 7,983,700 1,329,400 61,093 12,035,793 December 1,041,900 1,884,700 8,779,300 1,268, ,721 13,762,921 January 1,137,000 2,080,100 9,702,700 1,998,200 53,641 14,971,641 February 0 March 0 April 0 ***Approp Transfer 0 May 0 June 0 Profit Distribution 0 YTD Transfers 6,809,300 12,346,200 57,164,100 9,725, , ,587,075 87,931,875 FY14 Transfers 6,798,000 13,308,800 57,133,200 11,262, ,000 1,552,818 90,355,418 *Clean Air Act **Pursuant to Proposition 202 (Compulsive Gambling Treatment) ***Pursuant to HB2001, FY14 for BREAZ D - 9

22 Arizona Lottery Transfers To Other State Funds By Product - FY /13/2015 Scratchers Instant Tabs Powerball Mega Millions Monopoly Millionaires' Club The Pick / EXTRA Fantasy 5 / EXTRA Pick 3 All Or Nothing Weekly Winnings Unclaimed Prizes C.A.S.A. Total Transfers July 7,246,900 33,400 1,572, , , , , ,400 92,800 61,183 10,917,083 August 7,135,200 34,800 1,513,700 1,034, , , , ,500 87, ,252 11,421,052 Gaming Department 200,500 1,800 46,900 23,300 12,600 6,800 3,800 1,900 2, ,000 September 7,353,300 39,100 2,018, , , , , ,700 82, ,076 11,960,576 October 7,821,800 36,300 1,702,500 1,523,000 48, , , , ,100 81,700 62,110 12,562,810 November 7,932,900 35,200 1,751, ,200 96, , , , ,300 73,800 61,093 12,035,793 December 8,746,800 43,200 1,652,900 1,107,600 86, , , , ,200 78, ,721 13,762,921 January 9,448,100 41,100 2,596,200 1,304, , , , ,400 77,900 53,641 14,971,641 February 0 March 0 April 0 Automation Project Fund 0 May 0 June 0 Profit Distribution 0 YTD Transfers 55,885, ,900 12,854,400 7,309, ,200 4,043,200 2,614,000 1,457,100 1,108, ,000 1,587,075 87,931,875 Transfer % of Total Sales 13.7% 0.1% 3.1% 1.8% 0.1% 1.0% 0.6% 0.4% 0.3% 0.1% 0.4% 21.5% YTD Sales 293,076,735 2,626,020 48,327,909 27,491, ,720 15,208,341 9,837,109 5,482,171 4,174,304 2,166, ,263,054 % of Sales by Product 71.6% 0.6% 11.8% 6.7% 0.2% 3.7% 2.4% 1.3% 1.0% 0.5% 100.0% % of Transfer by Product 19.1% 10.1% 26.6% 26.6% 26.5% 26.6% 26.6% 26.6% 26.6% 26.6% 21.1% D - 10

23 FY15 Year-to-Date Budget Status JANUARY Date: 1/31/2015 Elapsed: 59% Expenditures Percent Budget thru Jan. Expended Balance Comments Personal Services 4,514,500 2,390,200 53% 2,124,300 ERE 2,119,800 1,092,900 52% 1,026,900 Professional & Outside 386, ,500 64% 139,300 payment timing/contracted accounting help Travel In-State 271, ,600 40% 162,000 Travel Out-of-State 16,800 6,200 37% 10,600 Other Operating / Equip. 1,112, ,900 53% 521,200 Operating Subtotal: $ 8,421,600 $ 4,437,300 53% $ 3,984,300 Advertising 1/ 15,500,000 7,734,100 50% 7,765,900 Instant Tickets 18,571,300 6,014,600 32% 12,556,700 % of sales On-Line Vendor Fees 9,399,400 4,027,900 43% 5,371,500 Charitable Commissions 852, ,200 62% 327,100 sales tracking higher than JLBC est. Retailer Commissions 51,298,200 26,492,400 52% 24,805,800 Total Budget: $ 104,042,800 $ 49,231,500 47% $ 54,811,300 1/ Advertising agency expenses are typically one month behind. Notes on Sales-Related Line Items: Instant Tickets: Appropriated based on 3.6% of sales. The budget reflects the JLBC instant sales estimate of $515.9 million for FY15. On-Line Vendor Fees: Appropriation based on percentage of on-line sales as determined by contract. The budget reflects the JLBC on-line sales estimate of $254.0 million for FY15. Charitable Commissions: The compensation rate is 20% of instant tab ticket sales. The budget reflects the JLBC sales estimate of $4.26 million for FY15. Retailer Commissions: The compensation rate is 6.5% plus up to an additional.5% based on performance criteria. The budget reflects the JLBC estimated compensation rate of 6.7% based on total sales of $ D - 11

24 Arizona Lottery Ticket Vending Machine - Monthly Out-of-Stock Averages July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June FY 2012 FY 2013 FY 2014 FY 2015 D - 12

25 Draw Games - Advertised Jackpot Comparisons January FY2015 vs FY2014 FY2015 Jackpot FY2014 Jackpot Powerball Wed Sat Wkly Sales Wed Sat Wkly Sales 01/03/15 $120.0 $131.0 $1.70 $50.0 $60.0 $ /10/15 $146.0 $162.0 $1.80 $70.0 $80.0 $ /17/15 $176.0 $194.0 $1.96 $93.0 $113.0 $ /24/15 $208.0 $230.0 $2.34 $131.0 $152.0 $ /31/15 $261.0 $289.0 $2.92 $171.0 $194.0 $2.18 Total Monthly Sales $9,796,514 $7,573,329 FY2015 Jackpot FY2014 Jackpot Mega Millions Tue Fri Wkly Sales Tue Fri Wkly Sales 01/03/15 $172.0 $188.0 $1.19 $47.0 $61.0 $ /10/15 $206.0 $221.0 $1.49 $15.0 $20.0 $ /17/15 $246.0 $270.0 $1.64 $30.0 $41.0 $ /24/15 $15.0 $20.0 $0.61 $51.0 $62.0 $ /31/15 $25.0 $32.0 $0.64 $71.0 $84.0 $0.71 Total Monthly Sales $4,922,777 $3,007,717 FY2015 Jackpot FY2014 Jackpot The Pick Wed Sat Wkly Sales Wed Sat Wkly Sales 01/03/15 $2.0 $2.1 $0.55 $3.7 $3.9 $ /10/15 $2.2 $2.3 $0.55 $4.0 $4.2 $ /17/15 $2.4 $2.5 $0.56 $4.4 $4.5 $ /24/15 $2.7 $2.8 $0.57 $4.7 $4.9 $ /31/15 $1.0 $1.1 $0.46 $1.0 $1.1 $0.52 Total Monthly Sales $2,397,329 $3,028,789 Jackpot and weekly sales amounts are in millions High jackpot for the period D - 13

26 Arizona Lottery Prizes Paid Game Type Tickets Validated January 2015 Prizes Paid Top Prize Paid Average Prize Paid Draw Games 622,650 $9,796,221 $5,000,000 $15.73 Scratchers 2,833,477 $34,287,347 $2,500,000 $12.10 Total 3,456,127 $44,083,568 $12.76 Game Type FY15 Year-To-Date Tickets Validated Prizes Paid Top Prize Paid Average Prize Paid Draw Games 3,574,592 $31,374,050 $5,000,000 $8.78 Scratchers 17,250,579 $204,344,282 $2,500,000 $11.85 Total 20,825,171 $235,718,332 $11.32 D - 14

27 New Business Item #1 Instant Scratch Game Profiles Report to Arizona Lottery Commission February 20, 2015 This report has been provided to the Lottery Commission regarding instant scratch game profiles planned for Arizona Lottery instant scratch games. The Commission is requested to approve these game profiles. After Commission approval, staff will commence with plans for printing, distribution, and sales of these games. NEW GAME PROFILES Attached for the Lottery Commission's action are new instant scratch game profiles: Crossword Party #978, and Red Hot 7s #979. Crossword Party #978. This $5 game has a top prize of $50,000 and will be printed at a quantity of approximately 4.8 million tickets. Red Hot 7s #979. This $2 game has a top prize of $7,777 and will be printed at a quantity of approximately 5 million tickets. Attachments (Commissioners only) 12

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