May 18, 2018 COMMISSION REPORT

May 18, 2018 COMMISSION REPORT

Table of Contents Notice Of Public Meeting... 3 Commission Minutes April 20, 2017... 5 Agency Reports... 8 Director s Presentation... 8 Products Presentation... 8 Marketing Presentation... 8 New Games Introduction... 8 New Business Item #1... 10 Instant Scratch Game Profiles... 10 New Business Item #2... 11 Bingo and Crossword 2 nd Chance Promotion Profile #88... 11 New Business Item #3... 12 Fast Play Game Profiles... 12 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 May 18, 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 April 20, 2018 Public Meeting Agency Reports 1. Director s Presentation 2. Products Presentation 3. Marketing Presentation New Business 1. Discussion and Action on instant scratch game profiles: Lucha Libre Loot #1176, Alice Cooper #1186 and $215 Million Cash Explosion #1190. 2. Discussion and Action on new promotion profile Bingo and Crossword 2 nd Chance Promotion #88. 3. Discussion and Action on Fast Play Game Profiles: $20 on the Spot #108 and Hot Numbers #109. 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. 3

Announcements The next Commission meeting will be held June 22, 2018 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 11 th day of May, 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 April 20, 2017 PRESIDING Chair Jeff Weintraub COMMISSIONERS Andy Anderson and Debra Roth LOTTERY Gregg Edgar, Executive Director; Raynie Hosto, Director of Sales; Sherri Zendri, Deputy Director of Legal Services; and Biju Kamaleswaran, Chief Financial Officer Kimberly Siddall, Luanne Mansanares, Mary Cimaglio, Karla Henriksen, Grace Wang, Robin Peters, Shelby Alessi, Sandra Blair and Stacey Henderson GUESTS PUBLIC IGT Representatives: Russ Harben and Serena Arlotta Owen s Harkey Representatives: Dawn Kemmer and Scott Harkey Scientific Games Representatives: Topper Wilson and Julio Dieppa Attorney General Representative: Grant Pearson William Moss Call to Order - Pursuant to the Public Notice dated April 13, 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 March 23, 2018 public meeting; Commissioner Andy Anderson moved; Commissioner Debra Roth seconded. All members voting aye, the motion carried. Retailer of the Quarter The Arizona Lottery Territory Manager, Sandra Blair presented a slide show about Bashas Food City 12. Bashas Food City 12 was awarded retailer of the quarter for second quarter fiscal year 2018. The presentation is attached for the official minutes. Director s Report Director Edgar presented slides and a short video from Artist in Residence Emily Costello. Director Edgar also advised the possibility to have Keno. Advising 19 other state lotteries currently sell Keno, generating $74-$82 million dollars. Chair Weintraub inquired, How does it work? How do you purchase a ticket? Director Edgar advised that tickets would be purchased at a terminal like a draw game ticket, and numbers would come up just like a regular [casino] Keno game. Commission Anderson inquired if other state lotteries sell Keno. Director Edgar advised 19 other state lotteries sell Keno. Commissioner Debra Roth stated it would be a great game for bars and retailers. The presentation is attached for the official minutes. Financial Report Arizona Lottery Chief Financial Officer, Mr. Biju Kamaleswaran presented fiscal year-to-date financial information. The presentation is attached for the official minutes. 5

Marketing Report Arizona Lottery Marketing Manager, Shelby Alessi presented information on the marketing campaigns for Powerball Power Cruise, Million Dollar Giveaway, Wonka Golden Ticket and What Would You Do With $40 Million? The presentation is attached for the official minutes. New Business - Chair Weintraub asked if any members of the public wanted to address the Commission regarding instant scratch game profiles: Casino Gold #1164, Lucky Deal #1168 and Bingo #1179. 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: #1164, #1168 and #1170. 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 new promotion profile Billion Dollar Challenge 2 nd Chance Promotion #87, and amended promotion profiles Cash Adventure Second Chance Promotion #83 and Million Dollar Giveaway Chance Promotion #86. 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 second chance promotion profiles #87, #83 and #86. Commissioner Roth moved; Commissioner Anderson seconded. All members voting aye, the motion carried. Chair Weintraub asked if any members of the public wanted to address the Commission regarding Fast Play Game Profiles: Comic Cash #106 and Treasure Chase #107. 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 Fast Play game profiles #106 and #107. 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 instant tab game profiles: Forever Free #091, Fight For The Flag #092, American Heroes #093, Liberty Bucks #094, Defending Freedom #095, Show Your Pride #096, American Forever #097, Tee Off #098, Got Luck? #099, Deuces Wild #100, Burn n Cherries #101, Crazy Aces #102, Bars & 7 s #103 and Moolah Baby #104. 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 instant tab game profiles: #091, #091, #092, #093, #094, #095, #096, #097, #098, #099, #100, #101, #102, #103 and #104. Commissioner Roth moved; Commissioner Anderson seconded. All members voting aye, the motion carried. 6

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 May 18, 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. 7

Agency Reports Report to Arizona Lottery Commission May 18, 2018 Director s Presentation Products Presentation Marketing Presentation New Games Introduction The following games were introduced since the last commission meeting: Big Money #1162, and Fire & Ice Crossword #1165. 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 5/5/18 04/13/18 $5 1131 Slingo Trio 1,950,240 96.2% 04/24/18 $2 1114 Money Stash 1,759,350 87.8% 05/01/18 $20 1113 $250,000 Crossword 1,230,300 95.7% 05/08/18 $10 1141 Spicy Hot Crossword 2,200,980 81.6% 8

ATTACHMENT A 9

Arizona Lottery Dashboard April 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: 745,404,000 Actual Core: 818,336,456 Total Actual: 818,336,456 Difference: 72,932,456 % Difference: 9.8% * Total sales are currently 9.8% ahead of projections. * The Instant product line (Scratchers & Pull tabs) at $593,522,902 are currently 10.1% ahead of projections. * Total draw game sales of $224,813,554 are currently 9.1% ahead of projections. * The Multi State draw games are currently 12.9% ahead of projections; in state games are 1.0% 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: 539,316,000 Actual: 593,522,902 Difference: 54,206,902 % Difference: 10.1% 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: 206,088,000 Actual 224,813,554 Difference: 18,725,554 % Difference: 9.1% 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: 139,608,000 Actual 157,654,095 Difference: 18,046,095 % Difference: 12.9% $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: 66,480,000 Actual 67,159,459 Difference: 679,459 % Difference: 1.0% 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 818,336,456 FY 2017 697,323,847 % Change 17.4% * Total sales are currently 17.4% ahead of last year. * The Instant product line (Scratchers & Pull tabs) are currently 13.3% ahead of last year. * Total draw game sales are currently 29.5% ahead of last year. * Sales of the multi state games (Powerball and Mega Millions) are currently 34.8% ahead of last year. * Sales of the in state games are currently 18.7% 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 593,522,902 FY 2017 523,734,518 % Change 13.3% 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 224,813,554 FY 2017 173,589,329 % Change 29.5% 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 157,654,095 FY 2017 116,987,924 % Change 34.8% $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 67,159,459 FY 2017 56,601,405 % Change 18.7% D 6

5/8/2018 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 68,746,417 700,440 169,560 69,616,417 11,536,207 10,916,497 2,832,650 1,365,033 1,069,871 235,172 240,602 2,212,276 30,408,308 100,024,725 April 64,635,808 627,342 183,600 65,446,750 6,427,856 3,691,971 2,834,273 1,244,178 974,948 98,332 100,572 2,036,703 17,408,833 82,855,583 May June YTD Sales 587,050,696 5,932,068 1,351,080 594,333,844 104,988,152 52,665,943 33,306,653 14,617,679 9,756,004 2,144,400 2,382,590 4,952,133 224,813,554 819,147,398 YTD Rtlr Commissions 38,158,295 1,186,414 87,820 39,432,529 6,824,230 3,423,286 2,164,932 950,149 634,140 139,386 154,868 321,889 14,612,881 54,045,410 % of Sales 71.7% 0.72% 0.16% 72.6% 12.8% 6.4% 4.1% 1.8% 1.2% 0.3% 0.3% 0.6% 27.4% 100.0% Avg Mo Sales 48,920,891 593,207 135,108 49,649,206 8,749,013 4,388,829 2,775,554 1,218,140 813,000 178,700 198,549 412,678 18,734,463 68,262,283 D - 7

Annual Sales Trailing 12 Month Periods 1,000.0 975.0 950.0 925.0 900.0 900.0 (Millions) 875.0 850.0 825.0 800.0 775.0 750.0 Twelve Months Ending Actual Goal D - 8

5/8/2018 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 2,429,500 5,349,700 5,369,200 1,000,000 15,490,000 3,500,000 25,065,500 225,000 582,657 59,011,557 April 3,750,075 3,750,075 May June YTD Transfers 10,000,000 21,012,200 80,399,925 11,529,000 1,000,000 15,490,000 3,500,000 25,065,500 300,000 675,000 250,000 2,206,668 171,428,293 YTD FY17 Transfers 10,000,000 20,701,600 84,150,000 11,523,600 1,000,000 15,490,000 3,500,000-300,000-203,700 250,000 3,027,359 150,146,259 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

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 83.84% 76.02% 83.86% 84.71% 49.84% 81.72% 90.75% Budget by Appropriation Type and Object Class Note: Sales Goal: $900 Million Appropriation Object Class Budget Expenditures Encumbered Remaining % Used 1. Operating: 6000 - Personal Services 4,533,300 3,548,558-984,742 78.28% 6100 - Employee Related Expenditures 2,076,800 1,513,429-563,371 72.87% 6200 - Professional And Outside Services 386,800 417,027 175,451-205,678 153.17% 6500 - Travel - In-State 271,600 133,111 0 138,489 49.01% 6600 - Travel - Out-Of-State 16,800 27,663 - -10,863 164.66% 7000 - Other Operating Expenditures 903,200 848,822 221,810-167,432 118.54% 8100 - Capital Outlay - 3,348 - -3,348 100.00% 8400 - Capital Equipment - 24,176 - -24,176 100.00% 8500 - Non-Capital Equipment 50,000 26,133 5,123 18,744 62.51% 9100 - Transfers Out 220,000 148,597 0 71,403 67.54% - NOT ENTERED - - - - 100.00% Total: 8,458,500 6,690,864 402,385 1,365,252 83.86% 2. Advertising: 6200 - Professional And Outside Services - - - - 100.00% 7000 - Other Operating Expenditures 15,450,000 8,332,905 4,796,676 2,320,419 84.98% 8400 - Capital Equipment - - - - 100.00% 8500 - Non-Capital Equipment 50,000 - - 50,000 - - NOT ENTERED - - - - 100.00% Total: 15,500,000 8,332,905 4,796,676 2,370,419 84.71% 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 11,564,137 1,933,804 6,983,959 65.90% 8400 - Capital Equipment 3,600,000 - - 3,600,000 - - NOT ENTERED - - - - 100.00% Total: 27,081,900 11,564,137 1,933,804 13,583,959 49.84% 4. Sales Commissions: 7000 - Other Operating Expenditures 60,549,000 42,884,646 6,596,165 11,068,189 81.72% - NOT ENTERED - - - - 100.00% Total: 60,549,000 42,884,646 6,596,165 11,068,189 81.72% 5. On-line Vendor Fees: 6200 - Professional And Outside Services 11,038,500 9,027,939 989,070 1,021,491 90.75% - NOT ENTERED - - - - 100.00% Total: 11,038,500 9,027,939 989,070 1,021,491 90.75% Grand Total: 122,627,900 78,500,492 14,718,100 29,409,309 76.02% Beneficiary Transfer Goal: $201 Million 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-10

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 3.9 3.7 2 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 D - 11

Arizona Lottery Vending Machine Sales Instant Tickets $30.0 $25.9 $25.0 $24.5 $23.0 $22.3 $23.6 $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 12

Draw Games Advertised Jackpot Comparisons Apr FY2018 vs FY2017 FY2018 Jackpot FY2017 Jackpot Powerball Wed Sat Wkly Sales Wed Sat Wkly Sales 04/07/18 $60.0 $74.0 $1.36 $50.0 $60.0 $1.35 04/14/18 $89.0 $106.0 $1.49 $40.0 $50.0 $1.26 04/21/18 $122.0 $142.0 $1.63 $60.0 $70.0 $1.34 04/28/18 $158.0 $177.0 $1.67 $80.0 $90.0 $1.35 Total Monthly Sales $6,427,856 $5,911,678 FY2018 Jackpot FY2017 Jackpot Mega Millions Tue Fri Wkly Sales Tue Fri Wkly Sales 04/07/18 $40.0 $45.0 $0.84 $162.0 $174.0 $1.02 04/14/18 $50.0 $55.0 $0.85 $15.0 $20.0 $0.59 04/21/18 $67.0 $80.0 $0.87 $25.0 $30.0 $0.61 04/28/18 $96.0 $111.0 $0.94 $37.0 $45.0 $0.60 Total Monthly Sales $3,691,971 $2,529,794 FY2018 Jackpot FY2017 Jackpot The Pick Wed Sat Wkly Sales Wed Sat Wkly Sales 04/07/18 $2.8 $3.1 $0.66 $1.1 $1.1 $0.51 04/14/18 $3.2 $3.3 $0.67 $1.2 $1.2 $0.49 04/21/18 $3.4 $3.6 $0.69 $1.3 $1.3 $0.49 04/28/18 $3.8 $3.9 $0.69 $1.5 $1.5 $0.48 Total Monthly Sales $2,834,273 $2,126,740 Jackpot and weekly sales amounts are in millions High jackpot for the period D 13

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 $6.05 $4.87 $4.96 $2.17 Apr $5.72 $4.53 $4.09 $2.25 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 14

New Business Item #1 Instant Scratch Game Profiles Report to Arizona Lottery Commission May 18, 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: Lucha Libre Loot #1176, Alice Cooper #1186 and $215 Million Cash Explosion #1190. Lucha Libre Loot #1176. This $2 game has a top prize of $10,000 and will be printed at a quantity of approximately 1.9 million tickets. Alice Cooper #1186. This $5 game has a top prize of $50,000 and will be printed at a quantity of approximately 1.4 million tickets. $215 Million Cash Explosion #1190. This $20 game has a top prize of $2,500,000 (30-year annuity) or a one-time cash payment of $1,250,000. This game will be printed at a quantity of approximately 14.1 million tickets. Attachments (Commissioners only) 10

New Business Item #2 Bingo and Crossword 2 nd Chance Promotion Profile #88 Report to Arizona Lottery Commission May 18, 2018 This report has been provided to the Lottery Commission regarding the Bingo and Crossword 2 nd Chance Promotion Profile. Starting July 2, 2018, players may enter non-winning tickets from any of the designated Bingo and Crossword instant scratch games for a chance to win prizes. The Commission is asked to approve this profile. Attachments (Commissioners only) 11

New Business Item #3 Fast Play Game Profiles Report to Arizona Lottery Commission May 18, 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: $20 on the Spot #108 and Hot Numbers #109. $20 on the Spot #108. This $1 Fast Play game has a top prize of $2,000. A total of 18 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 10 times on a single ticket. Hot Numbers #109. This $5 Fast Play game has a top prize of $50,000. A total of 20 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 eight times on a single ticket. Attachments (Commissioners only) 12