Acting Director’s Comments

Presentation to California State Lottery Commission

September 25, 2014Director’s Report 7A

Overview

• YTD Sales Update

• First Quarter Highlights

• Action Items on the Agenda

• DR Part b – Santa Fe Springs Property Update

• DR Part c – MONOPOLY ™ Millionaires’ Club

Presentation

Sales Update: YTD Sales Surpassed $1 Billion A Week Sooner Than Last Year

FY Sales thru 9-20

(in millions)% of Goal

Change vs. Last

Year

TOTAL SALES $1,095.39 92% 4%

Scratchers (Consumer Sales) $773.59 98% 21%

Multi-State Games $142.63 69% -39%Powerball $69.70 65% -59%MEGA Millions $72.93 75% 11%

SuperLotto Plus $63.95 85% -10%

Daily Games $72.43 103% -1%Hot Spot $42.79 98% 6%

Total Sales Good Despite Low Jackpots This Summer

• Through September 20th, the largest jackpot this fiscal year is $196 million for Powerball

• Last fiscal year, by mid-September, there were already 7 draws with jackpots above $200 million including 2 draws at $400 million

Strong Summer for Scratchers• Typically, Summer Scratchers sales are 6% lower than Spring• This year’s plan was to minimize this “Summer Slump” • Result: We mitigated the summer slump with just a 2%

decline in sales from Spring

Operational Highlights

• Achieved WLA Certification in Security • Submitted Application for WLA Level 4 in

Responsible Gaming– Response expected February 2015

• SLED Underage Gaming Compliance Checks• New Front Door for Public Website California Lottery• 24 of the 33 New Projects Approved for 2014/15 have

been opened and are underway

Today’s Action Items on Agenda• Purchase of Real Property to Replace Van Nuys

District Office – Dani Fischer• Amended Lottery Regulations – Disqualified Persons –

Stephen Tacchini• Security Guard Services Contract Amendment –

Stephen Tacchini• Advertising Research Contract Amendment – Jim

Hasegawa• Marketing Promotional Service Payment – Leticia

Saldivar• Consideration of MONOPOLY™ Millionaires’ Club, a

New Multi-State Lottery Game – Richard Mahan