March 23, 2018 COMMISSION REPORT

March 23, 2018 COMMISSION REPORT

Table of Contents Notice of Public Meeting... 3 Commission Minutes November 17, 2017... 5 Agency Reports... 7 Director s Presentation... 7 New Games Introduction... 7 New Business Item #1... 9 Instant Scratch Game Profiles... 9 New Business Item #2... 10 Million Dollar Giveaway Second Chance Promotion Profile #86... 10 New Business Item #3... 11 Fast Play Game Profiles... 11 2

NOTICE OF PUBLIC MEETING AND EXECUTIVE SESSION OF THE ARIZONA STATE LOTTERY COMMISSION Pursuant to Arizona Revised Statute (A.R.S.) 38-431.02, 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 March 23, 2018, at 10:00 a.m., in the Arizona Lottery Board Room located at 4740 East University Drive, Phoenix, Arizona. Pursuant to A.R.S. 38-431.02(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. 38-431.03(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 February 23, 2018, Public Meeting Agency Reports New Business 1. Director s Presentation 1. Discussion and Action on instant scratch game profiles: Arizona Gold #1174 and Jumbo Bucks #1175. 2. Discussion and Action on Million Dollar Giveaway Second Chance Promotion Profile #86. 3. Discussion and Action on Fast Play Games Profiles: Piggy Bank Bucks #104 and Jackpot Party Progressive #105 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 rescheduling the matter for further consideration at a later date to comply with A.R.S. 38-431.02. Announcements The next Commission meeting will be held April 20, 2018, at 10:00 a.m. 3

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 16 th day of March, 2018 Gregory R. Edgar Executive Director Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by calling (480) 921-4486. Requests should be made as early as possible to allow time to arrange the accommodation. 4

PUBLIC MEETING OF THE ARIZONA LOTTERY COMMISSION MINUTES February 23, 2017 PRESIDING Chair Jeff Weintraub COMMISSIONERS Andy Anderson, and Debra Roth LOTTERY Gregg Edgar, Executive Director, Chris Rogers, Director of Products & Marketing; Raynie Hosto, Director of Sales, and Biju Kamaleswaran, Chief Financial Officer, Kimberly Siddall, Luanne Mansanares, David Nunn, Mary Cimaglio, Karla Henriksen, Shelby Alessi, Robin Peters, Ivy Gilio, Gaurav Deshpande, Holly Gordon, and Stacey Henderson GUESTS IGT Representatives: Russ Harben and Serena Arlotta Owen s Harkey Representative: Dawn Kemmer Scientific Games Representatives: Topper Wilson, Julio Dieppa and Dan Grace Attorney General Representative: Grant Pearson Call to Order - Pursuant to the Public Notice date February 23, 2018, 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. Chair Weintraub entertained a motion to approve the minutes of the January 19, 2018, public meeting; Commissioner Andy Anderson moved; Commissioner Debra Roth seconded. All members voting aye, the motion carried. Directors Report Director Edgar presented the beneficiary of the month. The beneficiary focus was on the CBS Channel 5 telethon for Court Appointed Special Advocates ( CASA ). The director reported the telethon generated over 300 phone calls in an 8 hour window which resulted in over 160 applications. To put that in perspective, CASA ran an awareness campaign for three months with the Arians Foundation and generated 400 calls. In an average month CASA receives 30 applicants. The Arizona Lottery has supported the CASA program since 1993 and generated more than $59 million for the program that has assisted over 21 thousand foster children. Director Edgar addressed the Multi-State Lottery Association ( MUSL ) Audit Committee s findings regarding the Random Number Generator ( RNG ). He reported that RNG 2 had a hardware failure and overheated and RNG 1 was not miss-performing. Financial Report - Mr. Biju Kamaleswaran presented financial information involving the total sales from instant and draw games for the past 12 months. He also provided fiscal year-to- date financial information for instant games, draw games, and price points. The presentation is attached for the official minutes. 5

Marketing Report - Mr. Chris Rogers presented financial information involving the return on investment on instant ticket games Royal Millions, Decade of Dollars and Cash Adventure. He provided information on the fiscal year 2018 marketing plan, gave a marketing update on the new draw game Fast Play, and upcoming media campaigns regarding draw games. New Business - Chair Weintraub asked if any members of the public wanted to address the Commission regarding instant scratch game profiles: Fire & Ice Crossword #1165, Cash Cow #1166, Double Sided Dollars #1167, Cleopatra #1169, Crossword #1171, Red Hot 7s #1172, Tic Tac 2 s #1173 and Lady Luck #1177. No response from the public. In accordance with A.R.S. 5-554 (C), Chair Weintraub entertained a motion to approve the order and authorize the Director to issue the order regarding the new instant scratch game profiles: #1165, #1166, #1167, #1169, #1171, #1172, #1173 and #1177. Commissioner Anderson moved; Commissioner Roth seconded. All members voting aye, the motion carried. Chair Weintraub asked if any members of the public wanted to address the Commission regarding the discussion and action on The Voice Second Chance Promotion Profile #85. In accordance with A.R.S. 5-554 (C), Chair Weintraub entertained a motion to approve the order and authorize the Director to issue the order regarding The Voice Second Chance Promotion Profile #85. Commissioner Roth moved; Commissioner Anderson seconded. All members voting aye, the motion carried. Chair Weintraub advised that Commissioner Aimee Jolley s term ended and a replacement for the fifth member of the Commission team is needed. Commissioner Roth inquired if the position required any specific qualification. Chair Weintraub advised no specific qualification is needed and it can be any member of the public; he also suggested a representative in the retail industry. In addition, Director Edgar was uncertain if the member needed to be a Democrat or an Independent. He would advise the commission at the next meeting. Call to the Public Chair Weintraub invited members of the public to speak before the Commission. There were no responses from the public. Announcements The next Commission meeting will be held March 23, 2018, at 10:00 a.m. Adjournment Chair Weintraub entertained a motion to adjourn: Commissioner Roth moved; Commissioner Anderson seconded. All members voting aye, the motion carried. Meeting adjourned at 10:40 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. 6

Agency Reports Report to Arizona Lottery Commission March 23, 2018 Director s Presentation New Games Introduction The following game was introduced since the last Commission meeting: Red Ball Tripler #1110, I Love to Win #1138, High 5 #1151, and $50 or $100 #1153. 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 through 3/10/18 02/17/18 $30 1098 Ultimate Millions 3,553,780 98.3% 03/06/18 $2 1067 Red Hot 7s 5,136,000 98.2% 03/06/18 $1 1095 Wild 1 1,761,900 92.9% 03/06/18 $10 1101 Win It All 1,680,120 97.5% 03/06/18 $2 1116 Find $50 1,760,400 85.4% 03/06/18 $3 1135 Loteria Arizona 1,198,600 36.5% 03/06/18 $5 1136 Cash Adventure 1,221,060 57.1% 7

ATTACHMENT A 8

Arizona Lottery Dashboard February 2018 Fiscal Year 2018

Arizona Lottery FY 2018 Sales versus Projections $1,000,000,000 Total Sales $900,000,000 $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 Projection Projection: 578,833,000 Actual Core: 636,267,090 Total Actual: 636,267,090 Difference: 57,434,090 % Difference: 9.9% * Total sales are currently 9.9% ahead of projections. * The Instant product line (Scratchers & Pull tabs) at $459,270,677 are currently 9.7% ahead of projections. * Total draw game sales of $176,996,413 are currently 10.6% ahead of projections. * The Multi State draw games are currently 15.4% ahead of projections; in state games are 0.6% above projections. D 1

Arizona Lottery FY 2018 Sales versus Projections $80,000,000 Instant Sales $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 Scratchers Pull Tabs Projection Projection: 418,798,000 Actual: 459,270,677 Difference: 40,472,677 % Difference: 9.7% Total Draw Games $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Projection: 160,035,000 Actual 176,996,413 Difference: 16,961,413 % Difference: 10.6% In State Multi State Projection D 2

Arizona Lottery FY 2018 Sales versus Projections $90,000,000 Multi State Games $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 Powerball Mega Millions Projection Projection: 108,411,000 Actual 125,081,564 Difference: 16,670,564 % Difference: 15.4% $9,000,000 In State Games $8,000,000 $7,000,000 $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 All or Nothing 5 Card Cash Projection Projection: 51,624,000 Actual 51,914,849 Difference: 290,849 % Difference: 0.6% D 3

Arizona Lottery FY 2018 versus FY 2017 Total Sales 150,000,000 130,000,000 110,000,000 90,000,000 70,000,000 50,000,000 30,000,000 10,000,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY 2017 FY 2018 FY 2018 636,267,090 FY 2017 536,530,630 % Change 18.6% * Total sales are currently 18.6% ahead of last year. * The Instant product line (Scratchers & Pull tabs) are currently 16.7% ahead of last year. * Total draw game sales are currently 23.8% ahead of last year. * Sales of the multi state games (Powerball and Mega Millions) are currently 27.8% ahead of last year. * Sales of the in state games are currently 15.1% ahead of last year. D 4

Arizona Lottery FY 2018 versus FY 2017 $80,000,000 Total Instant Games $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 2017 FY 2018 FY 2018 459,270,677 FY 2017 393,540,297 % Change 16.7% 90,000,000 Total Draw Games 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 Powerball Mega Millions In State FY 2017 FY 2018 176,996,413 FY 2017 142,990,333 % Change 23.8% D 5

Arizona Lottery FY 2018 versus FY 2017 $80,000,000 Multi State Jackpot Games $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 2017 FY 2018 FY 2018 125,081,564 FY 2017 97,893,286 % Change 27.8% $9,000,000 Total In State Games $8,000,000 $7,000,000 $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 2017 FY 2018 FY 2018 51,914,849 FY 2017 45,097,047 % Change 15.1% D 6

3/5/2018 Arizona Lottery Sales by Product - FY 2018 Month M Scratchers Instant Tabs - Charitable Instant Tabs - Age Restricted Total Instants Powerball Mega Millions The Pick / EXTRA Fantasy 5 / EXTRA Pick 3 All Or Nothing 5 Card Cash Fast Play Total Draw Games Total Sales July 54,102,309 503,820 114,480 54,720,609 7,373,038 4,742,504 2,979,004 1,548,405 948,219 225,010 260,752 18,076,932 72,797,541 August 54,009,113 559,572 84,240 54,652,925 26,634,663 5,699,453 4,056,539 1,320,770 954,599 243,364 270,110 39,179,498 93,832,423 September 51,598,544 486,792 123,120 52,208,456 6,127,599 2,769,531 4,089,551 2,304,103 935,189 226,506 249,902 16,702,381 68,910,837 October 53,063,247 592,044 123,120 53,778,411 6,410,746 2,439,254 4,567,945 1,197,706 961,392 223,524 251,818 16,052,385 69,830,796 November 53,304,622 618,210 127,440 54,050,272 6,107,524 3,396,703 4,862,679 1,343,292 940,307 212,962 244,116 17,107,583 71,157,855 December 59,609,493 517,980 112,320 60,239,793 12,203,532 6,885,933 2,440,299 1,459,199 998,738 226,622 258,338 24,472,661 84,712,454 January 65,912,015 703,428 167,400 66,782,843 14,026,604 7,685,409 2,476,865 1,355,593 1,027,832 239,778 270,000 27,082,081 93,864,924 February 62,069,128 622,440 145,800 62,837,368 8,140,383 4,438,688 2,166,848 1,479,400 944,909 213,130 236,380 703,154 18,322,892 81,160,260 March April May June YTD Sales 453,668,471 4,604,286 997,920 459,270,677 87,024,089 38,057,475 27,639,730 12,008,468 7,711,185 1,810,896 2,041,416 703,154 176,996,413 636,267,090 YTD Rtlr Commissions 29,488,451 920,857 64,865 30,474,173 5,656,566 2,473,736 1,796,582 780,550 501,227 117,708 132,692 45,705 11,504,767 41,978,939 % of Sales 71.3% 0.72% 0.16% 72.2% 13.7% 6.0% 4.3% 1.9% 1.2% 0.3% 0.3% 0.1% 27.8% 100.0% Avg Mo Sales 56,708,559 575,536 124,740 57,408,835 10,878,011 4,757,184 3,454,966 1,501,059 963,898 226,362 255,177 87,894 22,124,552 79,533,386 D - 7

Annual Sales Trailing 12 Month Periods 975.0 950.0 925.0 900.0 900.0 875.0 (Millions) 850.0 825.0 800.0 775.0 750.0 Twelve Months Ending Actual Goal D - 8

3/5/2018 Arizona Lottery Transfers To Other State Funds By Beneficiary - FY 2018 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** Internet Crimes & Victims' Rights*** Internet Crimes & Victims' Rights*** Tribal College Dual Enrollment C.A.S.A. Total Transfers July 3,750,075 36,161 3,786,236 August 3,750,075 54,624 3,804,699 September 3,801,700 7,865,700 24,529,350 8,017,400 225,000 159,216 669,982 45,268,348 **Approp Transfer 300,000 300,000 October 3,750,075 3,750,075 November 3,750,075 3,750,075 December 3,768,800 7,796,800 24,250,850 3,511,600 225,000 954,028 40,507,078 January 3,750,075 3,750,075 February 3,750,075 3,750,075 March April May June YTD Transfers 7,570,500 15,662,500 71,280,650 11,529,000 300,000 450,000 250,000 1,624,011 108,666,661 YTD FY17 Transfers 6,016,000 12,446,500 61,935,750 10,100,600 - - - - 300,000-121,800 250,000 2,135,829 93,306,479 FY17 Transfers 10,000,000 20,701,600 90,436,112 11,529,000 1,000,000 15,490,000 3,500,000 39,926,998 300,000 100,000 900,000 250,000 3,965,599 198,099,309 cap based on prior year **Pursuant to Proposition 202 (Compulsive Gambling Treatment) ***Pursuant to HB2517 (Victims' Rights & Internet Crimes Against Chrildren) D - 9

Scratchers Powerball Mega Millions The Pick / EXTRA Arizona Lottery Transfers To Other State Funds By Product - FY 2018 State General Fund II Fantasy 5 / EXTRA Pick 3 All Or Nothing 5 Card Cash Instant Tabs Charitable Instant Tabs Age Restricted Unclaimed Age Restricted Unclaimed Prizes Tribal 3/5/2018 Unclaimed Prizes C.A.S.A. Total Transfers July 2,789,275 451,600 182,400 138,800 81,300 49,000 12,700 16,400 28,600 36,161 3,786,236 August 2,789,275 451,600 182,400 138,800 81,300 49,000 12,700 16,400 28,600 54,624 3,804,699 September 19,416,250 13,545,600 4,391,600 3,727,600 1,699,900 923,800 225,000 248,400 36,000 45,200 179,800 159,216 669,982 45,268,348 ***Gaming Department 223,200 36,100 14,600 11,100 6,500 3,900 1,000 1,300 2,300 300,000 October 2,789,275 451,600 182,400 138,800 81,300 49,000 12,700 16,400 28,600 3,750,075 November 2,789,275 451,600 182,400 138,800 81,300 49,000 12,700 16,400 28,600 3,750,075 December 20,396,950 7,996,800 4,215,300 3,996,100 1,277,600 946,400 213,400 238,900 46,600 51,000 174,000 954,028 40,507,078 January 2,789,275 451,600 182,400 138,800 81,300 49,000 12,700 16,400 28,600 3,750,075 February 2,789,275 451,600 182,400 138,800 81,300 49,000 12,700 16,400 28,600 3,750,075 March* April May June Final Profit Distribution YTD Transfers 56,772,050 24,288,100 9,715,900 8,567,600 3,471,800 2,168,100 515,600 587,000 256,500 96,200 353,800 250,000 1,624,011 108,666,661 Transfer % of Total Sales 8.9% 3.8% 1.5% 1.3% 0.5% 0.3% 0.1% 0.1% 0.0% 0.015% 0.1% 0.04% 0.3% 17.1% YTD Sales 453,668,471 87,024,089 38,057,475 27,639,730 12,008,468 7,711,185 1,810,896 2,041,416 4,604,286 997,920 635,563,936 % of Sales by Product 71.38% 13.69% 5.99% 4.35% 1.89% 1.21% 0.28% 0.32% 0.72% 0.16% 100.00% % of Transfer by Product 12.51% 27.91% 25.53% 31.00% 28.91% 28.12% 28.47% 28.75% 5.57% 9.64% 16.84% D - 10

Arizona Lottery Financial Dashboard Overall Percent Spent by Appropriation Cash Balance by Fund Percent of Year Elapsed Percent Used 1. Operating: 2. Advertising: 3. Instant Printing: 4. Sales Commissions: 5. On-line Vendor Fees 67.12% 60.17% 72.42% 83.97% 48.41% 50.34% 99.98% Budget by Appropriation Type and Object Class Sales Goal: $900 Million Appropriation Object Class Budget Expenditures Encumbered Remaining % Used 1. Operating: 6000 - Personal Services 4,533,300 2,893,512-1,639,788 63.83% 6100 - Employee Related Expenditures 2,076,800 1,229,594-847,206 59.21% 6200 - Professional And Outside Services 386,800 341,226 267,437-221,863 157.36% 6500 - Travel - In-State 271,600 114,239 0 157,361 42.06% 6600 - Travel - Out-Of-State 16,800 23,006 - -6,206 136.94% 7000 - Other Operating Expenditures 903,200 729,831 311,408-138,039 115.28% 8100 - Capital Outlay - 1,674 1,674-3,348 100.00% 8400 - Capital Equipment - 24,206 0-24,206 100.00% 8500 - Non-Capital Equipment 50,000 38,488 1,005 10,508 78.98% 9100 - Transfers Out 220,000 114,947 33,650 71,403 67.54% - NOT ENTERED - - - - 100.00% Total: 8,458,500 5,510,722 615,174 2,332,604 72.42% 2. Advertising: 6200 - Professional And Outside Services - - - - 100.00% 7000 - Other Operating Expenditures 15,450,000 6,348,604 6,666,048 2,435,348 84.24% 8400 - Capital Equipment - - - - 100.00% 8500 - Non-Capital Equipment 50,000 - - 50,000 - - NOT ENTERED - - - - 100.00% Total: 15,500,000 6,348,604 6,666,048 2,485,348 83.97% Section Total Over/Under YTD Budget*** 3. Instant Printing: 6200 - Professional And Outside Services 3,000,000 - - 3,000,000 - - 6600 - Travel - Out-Of-State - - - - 100.00% Total: - 7000 - Other Operating Expenditures 20,481,900 7,882,852 3,483,936 9,115,112 55.50% - NOT ENTERED - - - - 100.00% Total: 23,481,900 7,882,852 3,483,936 12,115,112 48.41% 4. Sales Commissions: 7000 - Other Operating Expenditures 60,549,000 30,479,811-30,069,189 50.34% - NOT ENTERED - - - - 100.00% Total: 60,549,000 30,479,811-30,069,189 50.34% 5. On-line Vendor Fees: 6200 - Professional And Outside Services 10,019,000 6,861,927 3,155,082 1,991 99.98% - NOT ENTERED - - - - 100.00% Total: 10,019,000 6,861,927 3,155,082 1,991 99.98% Grand Total: 118,008,400 57,083,917 13,920,239 47,004,244 60.17% Beneficiary Transfer Goal: $201 Million Note: 1. Sales commissions capture only July through April. Sales commissions were approximately $5.2M in May. 2. $45M of the beneficiary transfer is pending to be transferred in April. D-11

Ticket Vending Machine Monthly Out of Stock Averages 7 6 5 4 4.27 4.18 3 3.72 3.65 3.64 3.37 3.50 3.9 2 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 D - 12

Arizona Lottery Vending Machine Sales Instant Tickets $30.0 $25.0 $24.5 $23.0 $22.3 $20.0 $20.2 $20.1 $19.2 $19.3 $19.9 $15.0 $10.0 $5.0 $0.0 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May June FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 D 13

Draw Games Advertised Jackpot Comparisons Feb FY2018 vs FY2017 FY2018 Jackpot FY2017 Jackpot Powerball Wed Sat Wkly Sales Wed Sat Wkly Sales 02/03/18 $127.0 $145.0 $1.75 $206.0 $229.0 $2.12 02/10/18 $165.0 $184.0 $1.82 $255.0 $285.0 $2.36 02/17/18 $203.0 $223.0 $2.06 $310.0 $349.0 $3.20 02/24/18 $246.0 $269.0 $2.17 $403.0 $40.0 $4.52 Total Monthly Sales $8,140,383 $12,050,270 FY2018 Jackpot FY2017 Jackpot Mega Millions Tue Fri Wkly Sales Tue Fri Wkly Sales 02/03/18 $89.0 $104.0 $0.96 $15.0 $20.0 $0.59 02/10/18 $120.0 $136.0 $1.01 $25.0 $30.0 $0.60 02/17/18 $153.0 $168.0 $1.10 $38.0 $46.0 $0.65 02/24/18 $185.0 $204.0 $1.16 $55.0 $64.0 $0.76 Total Monthly Sales $4,438,688 $2,669,021 FY2018 Jackpot FY2017 Jackpot The Pick Wed Sat Wkly Sales Wed Sat Wkly Sales 02/03/18 $1.0 $1.0 $0.48 $1.5 $1.6 $0.53 02/10/18 $1.1 $1.1 $0.50 $1.6 $1.7 $0.53 02/17/18 $1.2 $1.3 $0.50 $1.8 $2.0 $0.56 02/24/18 $1.4 $1.5 $0.50 $2.0 $2.1 $0.63 Total Monthly Sales $2,166,848 $2,259,539 Jackpot and weekly sales amounts are in millions High jackpot for the period D 14

Arizona Lottery Average Wager Transactions By Game In State Scratchers Powerball Mega Millions Draw Games July $5.82 $4.56 $2.91 $2.27 Aug $5.57 $5.78 $2.88 $2.25 Sept $5.70 $4.47 $2.57 $2.40 Oct $5.81 $4.62 $2.66 $2.45 Nov $5.61 $4.51 $4.07 $2.46 Dec $6.07 $4.87 $4.45 $2.14 Jan $5.72 $5.12 $4.59 $2.14 Feb $5.62 $4.69 $4.21 $2.18 Mar Apr May June Average $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June Scratchers Powerball Mega Millions In State Draw Games D 15

New Business Item #1 Instant Scratch Game Profiles Report to Arizona Lottery Commission March 23, 2018 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: Arizona Gold #1174 and Jumbo Bucks #1175. Arizona Gold #1174. This $20 game has a top prize of $500,000 and will be printed at a quantity of approximately 1.2 million tickets. Jumbo Bucks #1175. This $10 game has a top prize of $100,000 and will be printed at a quantity of approximately 1.6 million tickets. Attachments (Commissioners only) 9

New Business Item #2 Million Dollar Giveaway Second Chance Promotion Profile #86 Report to Arizona Lottery Commission March 23, 2018 This report has been provided to the Lottery Commission regarding the Million Dollar Giveaway Second Chance Promotion Profile. For the month of May, players may enter non-winning tickets from designated $10, $20, and $30 instant scratch ticket games for a chance to win $1,000,000. The Commission is asked to approve this profile. Attachments (Commissioners only) 10

New Business Item #3 Fast Play Game Profiles Report to Arizona Lottery Commission March 23, 2018 This report has been provided to the Lottery Commission regarding Fast Play game profiles planned for Arizona Lottery Fast Play games. The Commission is requested to approve the two attached game profiles. After Commission approval, staff will commence with plans for game development, launch and subsequent sales of the games listed below. NEW GAME PROFILES Attached for the Lottery Commission's action are the following Fast Play game profiles: Piggy Bank Bucks #104 and Jackpot Party Progressive #105. Piggy Bank Bucks #104. This $1 Fast Play game has a top prize of $1,000. A total of seven numbers are generated and used to identify whether a particular ticket is a winner of one or more instant prizes. A player may win up to five times on a single ticket. Jackpot Party Progressive #105. This $2 Fast Play game includes a jackpot starting at $2,000. A total of 25 play symbols are generated and used to identify whether a particular ticket is a winner of one or more instant prizes. A player may win up to five times on a single ticket. A progressive jackpot is a jackpot that increases each time a ticket is sold but the jackpot is not won. When the progressive jackpot is won, the jackpot for the next ticket is reset to $2,000 and resumes increasing under the same rule. Attachments (Commissioners only) 11