8-21-15 AZ Lottery Commission Report

Transcription

AUGUST 21, 2015
COMMISSION
REPORT
Table of Contents
Notice of Public Meeting ............................................................................................................. 3
Commission Minutes June 19, 2015 ......................................................................................... 6
Commission Minutes July 01, 2015 ........................................................................................ 10
Commission Minutes July 08, 2015 ........................................................................................ 12
Agency Reports .......................................................................................................................... 14
Retailer of the Year ................................................................................................................ 14
Territory Manager of the Year .............................................................................................. 14
Director's Report..................................................................................................................... 14
Retailer Satisfaction Survey Results ................................................................................... 14
Out-of-Stocks Review ............................................................................................................ 14
Draw Game Changes ............................................................................................................ 14
Pull-Tab Expansion ................................................................................................................ 14
Fy15 Year-End Product & Sales Report ............................................................................. 14
New Games Introduction....................................................................................................... 15
Events/Sponsorships ............................................................................................................. 15
New Business Item #1 .................................................................................................................. 18
Instant Scratch Game Profiles ............................................................................................. 18
New Business Item #2 ............................................................................................................... 19
5 Card Cash™ Game Profile ................................................................................................ 19
Draw Game Profiles ............................................................................................................... 20
Amended Promotion Profile #75 .......................................................................................... 21
Instant Tab Games Profiles .................................................................................................. 22
Award Of Warehouse And Distribution Services For Pull Tabs (#Adspo15-00005009)
................................................................................................................................................... 24
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 August 21,
2015, at 10 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. § 38431.03(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.
2.
3.
4.
5.
6.
Call for Quorum
Call for Notice
Approval of Minutes for June 19, 2015, Public Meeting
Approval of Minutes for July 1, 2015, Public Meeting
Approval of Minutes for July 8, 2015, Public Meeting
Approval of Minutes for July 8, 2015, Executive Session
Agency Reports
1.
2.
3.
4.
5.
6.
7.
8.
Retailer of the Year
Territory Manager of the Year
Directors Report
Retailer Satisfaction Survey Results
Out-of-Stocks Review
Draw Game Changes
Pull-Tab Expansion
FY15 Year-End Product & Sales Report (No Presentation)
New Business
1.
Discussion and Action on new instant scratch game profiles: Director’s Edition
#1023, Super Crazy 8’s #1032, 2X the Money #1034, and Big Money Game
Book #1042.
2.
Discussion and Action on new draw game profile 5 Card Cash™.
3
3.
Discussion and Action on amended Powerball™ draw game profile and amended
PowerPlay™ promotion profile.
4.
Discussion and Action on amended second-chance draw promotion profile for
instant game, MONOPOLY MILLIONAIRES’ CLUB™.
5.
Discussion and Action on new Instant Tab Game Profiles: Ice Cold Pitcher
#1001, Head’N for Home #1002, Hit The Bullseye #1003, Turn The Tables
#1004, Last Call #1005, Touchdown Drive #1006, I Like Big Bucks #1007, Right
On Cue #1008, Slot Crazy #1009, and Bragging Rights #1010.
6.
Discussion and Action on Proposed Contract Award for solicitation #ADSPO1500005009 Warehouse and Distribution Services for Pull Tabs. (Pursuant to
A.R.S. § 38-431.03(A)(2) (Executive Session may be required)
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 September 18, 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 18th day of August, 2015
4
______________________________
Tony V. Bouie MA, MS, MBA
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.
5
PUBLIC MEETING OF THE ARIZONA LOTTERY
COMMISSION MINUTES JUNE 19, 2015
PRESIDING
Chair Jeff Weintraub
COMMISSIONERS Frank Conley, Michael Love, Andy Anderson, and Chip Scutari
LOTTERY
Tony V. Bouie, Executive Director; Brian Townsend, Deputy
Director; Eric Borg, Director of Operations; and Raynie Hosto,
Director of Sales, Mike Schiefelbein, Director of Products
Barbara Anderson, Cindy Esquer, Shannon Nelson, Pam DiNunzio,
Brett Moulton, Mark Strickling, Shelby Alessi, Tom Malone, Nancy
Letarte, Isaac Silva, Luanne Mansanares, Susan Kalember,
Kimberly Siddall, and Jacqui Ayala
GUESTS
LaneTerralever Representatives: Isabelle Jazo, Kirstin Jones,
Carlos Pastor, Leigh Dow, Alison Rose, Leigh Dow, AnnaLilli
Chacon, and Richard Skufza
GTECH Representatives: Russ Harben, Marianne Manning, Larry
King, and Serena Arlotta
WestGroup Representatives: Dave Maddox
Scientific Games Representative: Topper Wilson
Attorney General Representative: Deanie Reh
PUBLIC
Brent Steffens, Janet Klein, and Robin Reid
Call to Order Pursuant to the Public Notice dated June 16, 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.
Chair Weintraub entertained a motion to approve the minutes of the May 22, 2015,
Public meeting; Vice-Chair Conley moved, Commissioner Anderson seconded. All
members voting aye, motion carried.
State Service Awards Director Bouie provided a State Service award to Nancy
Letarte for 5 years of service, Susan Kalember for 15 years of service, and Pam
DiNunzio for 20 years of service. He also recognized Mike Worra for 5 years of service.
Director’s Report Director Bouie presented a PowerPoint overview of the Director’s
Report. The Director’s Report is attached for the official minutes.
Vice-Chair Conley asked how June compared to last year for year-end sales. Director
Bouie did not know the exact numbers; however, we had roughly $50,000,000 in sales
this past month and should end with about $744 - $745 million.
6
Chair Weintraub asked for an update on the draw games strategy. Director Bouie said
we ended the low jackpot campaign, have a new draw game we are working on named
5 Card Cash, and Powerball Group will be voting on rule changes. These changes
should help draw sales next fiscal year.
3rd Quarter FY15 Tracking Research Mr. Dave Maddox and Ms. Isabelle Jazzo
presented the WestGroup Tracking Report for FY15. Mr. Maddox explained that the
report consists of 400+ telephone interviews each month with a random sample of
Arizona adults ages 21 and over. He explained that the tracker helps to identify usage
and awareness amongst our players.
Vice-Chair Conley wanted to know if the survey asked about the new logo. Mr. Maddox
stated that they do not ask that, but it would be a good question and simple to add.
Ms. Jazzo stated a pre-awareness study was done to provide a baseline of attitudes,
preferences, and how people felt about the Lottery pre-launch of the logo redesign. The
plan now is to roll in the post research as the agency continues tracking for next year
instead of doing a specific study. The agency will mirror those same questions in a post
analysis, create some efficiencies with the research, and measure that. Ms. Jazzo
wants to make sure that many of the elements are up and running for at least four to six
months so that the agency could have a true measure.
Vice-Chair Conley asked if we would see these research findings in the next three
months, because he wants to see the return on investment of the rebranding initiative.
Ms. Jazzo stated that we now need to take the new logo mark and attach it to the
strategic mission because, from a marketing perspective, we would like to measure it
when we are fully engaged and promoting it.
Commissioner Conley stated that it was interesting that Scratchers awareness
represented only 20%, but they represent 70% of our sales. Mr. Maddox stated the
graphic is showing reported play, which is the number of individuals who say they play a
game regardless of the number of tickets purchased.
Low Tier Jackpot Campaign Ms. Jazzo provided an overview of the campaign. She
explained that the business objective was to bolster Powerball and Mega Millions sales
to an audience that normally does not play until the jackpot rolls to $150 million or more.
She said the goal was to combat that jackpot fatigue and to get those players to play at
a lower jackpot. Ms. Jazzo showed a comparison between sales during the campaign
period compared to similar jackpot runs.
Commissioner Love asked if the campaign had been running prior to the number being
calculated for the February 2015 run. Ms. Jazzo stated that it had been running for two
or three days prior to that number. In addition, there was a jackpot a couple days prior
7
to the start of the campaign, and there is halo effect from the jackpot that is a factor to
consider.
Vice-Chair Conley said his concern from a retail perspective is that he does not see this
as comparable weeks because the population of Phoenix and the state of Arizona in
October is much lower due to the snow bird population then it is in February, and
therefore, he could not see a true comparison.
Chair Weintraub stated that what he was getting from it was very inconclusive as it ran
for a very short period.
Director Bouie asked what the total budget they allotted for the campaign was. Ms.
Jones said it was $1.6 million, and said they cancelled about $500,000 in media. Mr.
Pastor said that from a production standpoint, the budget for POS and broadcast was
$250,000, and they came in under at $245,000.
Review of Year-End Budget and True Up Mr. Richard Skufza presented how the
year-end agency fee is calculated and capped and explained the year-end true up
process. Vice-Chair Conley asked how long the $2.2 million cap has been in place. Mr.
Skufza said it went into place in 2012. Director Bouie asked since that cap has been in
place, if they have ever seen less than the $2.2 million. Mr. Skufza stated that he does
not believe so, except for once when they came in just under the cap.
Director Bouie said the allocated budget from the legislature is $15.5 million and wanted
to know of the $15.5 million, what percentage is the agency fee. Mr. Skufza stated it
was about 15%. Director Bouie asked if that percentage is higher than other states. Mr.
Skufza said he has not run those analytics. Director Bouie said the one he has seen,
specifically Tennessee, is roughly 8%.
FY15 Savings and FY16 Recommendations Mr. Carlos Pastor stated that the budget
started at $14.3 million, and they spent $13.4 million, leaving a savings of $850,000 that
was returned to the State of Arizona. Director Bouie clarified that the media savings was
due to the cancellation that he requested and LT complied with. Director Bouie also said
the savings on sports sponsorships was solely derived from his decision not to proceed
with the Mercury sponsorship for the remainder of the fiscal year.
Commissioner Love asked about the media line item. He wanted to know what other
lottery states of the same population size were spending on media. Ms. Kirstin Jones
said they did not have any current information, but could get that information.
Mr. Pastor reviewed the FY16 savings recommendations, identifying some top-level
areas for cost savings. He said to (1) look at how we purchase broadcast media, (2)
media mix, (3) outdoor savings, (4) sports sponsorships, and (5) aspect of production
costs. Director Bouie pointed out that LT came up with these cost efficiencies as a direct
result of amendment 10 that he asked them to sign that would ensure local
vendors/businesses would have the opportunity to bid on jobs costing $5,000 or more.
8
New Business Chair Weintraub opened the floor for nominations for Commission
Chair. Chair Weintraub nominated Vice-Chair Conley for Chair. There were no other
nominations, and Chair Weintraub entertained a motion to elect Vice-Chair Conley as
Chair by unanimous consent. Commissioner Love seconded. The motion was carried.
Chair Weintraub opened the floor for nominations for Commission Vice-Chair.
Commissioner Scutari nominated Commissioner Love for Vice-Chair. There were no
other nominations, and Chair Weintraub entertained a motion to elect Commission Love
as Vice-Chair by unanimous consent. Commissioner Anderson seconded. The motion
was carried.
Chair Weintraub asked if any members of the public would like to address the
Commission regarding amended instant scratch game profiles Wild $10 #1024 and
Hundred Grand Cash #1035 and new instant scratch game profiles: Winter Wins #984,
12 Days of Christmas #986, Jolly Cash Crossword #987, Holiday Magic #988, Holiday
Cash #989, Silver & Gold Crossword #1022, Double Wild Jacks #1029, Black Cherry
Doubler #1030, Electric 8s #1031, Double Deuces #1033, and X #1036. 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 amended instant
scratch game profiles #1024 and #1035 and new instant scratch game profiles #984,
#986, #987, #988, #989, #1022, #1029, #1030, #1031, #1033, and #1036. Vice-Chair
Conley moved; Commissioner Scutari 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.
Announcements The next Commission meeting will be held August 21, 2015, at 10:00
a.m.
Adjournment Chair Weintraub entertained a motion to adjourn, Commissioner Love
moved; Commissioner Anderson seconded. All members voting aye, motion carried.
Meeting adjourned at 11:13 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.
9
COMMISSION MINUTES JULY 01, 2015
PRESIDING
Chair Frank Conley, Telephonic
COMMISSIONERS Telephonic Michael Love, Jeff Weintraub, and Andy Anderson
LOTTERY
Director; Eric Borg, Director of Operations; Michael Schiefelbein,
and Raynie Hosto, Director of Sales
Barbara Anderson, Cindy Esquer, Pam DiNunzio, Brett Moulton,
Robin Peters, Grace Wang, Susan Kalember, Darlene Miller,
Shelby Alessi, Kimberly Siddall, Rick Crago, and Jacqui Ayala
GUESTS
GTECH Representatives: Russ Harben and Matt Cedor
Scientific Games Representative: Sean Athey
PUBLIC
Jim Norton, Patt Tatarski, and Bill Tatarski
Call to Order Pursuant to the Public Notice dated June 24, 2015, the Public Meeting of
the Arizona State Lottery Commission was called to order at 1:00 p.m. by Chair Conley.
A quorum was present.
Chair Weintraub entertained a motion to approve the minutes of the April 24, 2015,
Public meeting; Vice-Chair Conley moved, Commissioner Anderson seconded. All
members voting aye, motion carried.
New Business Chair Conley said the reason for the meeting was discussion and action
on the Proposed Draw Game Services Contract Award to Scientific Games in
Solicitation # ADSPO14-00003979. Chair Conley said he understands that under the
Regulatory Rules, the evaluation material is confidential until after an award is made.
He stated he had questions about the evaluation materials and asked if any of the other
Commissioners had questions. Commissioner Anderson and Vice-Chair Love said they
did not have questions. Commissioner Weintraub said he did not have questions about
the materials, but would like to have discussion before taking a vote.
Chair Conley asked if we may ask any questions in the open meeting about the
evaluation. Ms. Reh said no; discussions would have to be held in executive session, as
the records are confidential. Chair Conley asked if an executive session for this purpose
was properly posted. Ms. Reh said she did not believe that an executive session for
discussion of confidential records was properly noticed. Vice-Chair Love said he
believed the notice was properly posted. Ms. Reh said the notice must list the specific
type of executive session. She said the only notice we had was for legal advice, and this
does not involve legal advice.
10
Ms. Reh said the last day for resetting this meeting with an executive session would be
July 9, 2015. Chair Conley asked if there was a motion to reset this meeting in order to
hold an executive session on July 9. Vice-Chair Love moved; Commissioner Anderson
seconded. Ms. Reh asked if someone wanted discussion on the motion. Commissioner
Weintraub said he had questions about the bidding and what was looked at. All
members voting aye, the motion carried. Ms. Reh explained that the Commission did
not have to set the meeting for July 9, but could be set any day before that as well. The
Commissioners looked at their calendars and determined the morning of July 8 would
work best. Ms. Reh said that since a motion was already carried to hold the meeting
July 9, another vote should be taken. Chair Weintraub moved; Commissioner Anderson
seconded. All members voting aye, the motion carried.
Announcements The next Commission meeting will be held July 8, 2015, at 10:00 a.m.
Adjournment Chair Conley entertained a motion to adjourn, Vice-Chair Love moved;
Commissioner Anderson seconded. All members voting aye, motion carried. Meeting
adjourned at 1:10 p.m.
11
COMMISSION MINUTES JULY 08, 2015
PRESIDING
Chair Frank Conley
COMMISSIONERS Telephonic Michael Love, Chip Scutari, and Andy Anderson
LOTTERY
Director; Eric Borg, Director of Operations; Michael Schiefelbein,
and Raynie Hosto, Director of Sales
Barbara Anderson, Cindy Esquer, Robin Peters, Isaac Silva, Susan
Kalember, Darlene Miller, Kimberly Siddall, Shelby Alessi, Rick
Crago, and Jacqui Ayala
GUESTS
GTECH Representatives: Russ Harben and Larry King
Scientific Games Representative: Topper Wilson
PUBLIC
Jim Norton, Patt Tatarski, and Bill Tatarski
Call to Order Pursuant to the Public Notice dated July 6th, 2015, the Public Meeting of
the Arizona State Lottery Commission was called to order at 9:00 a.m. by Chair Conley.
A quorum was present.
New Business Executive session to discuss confidential records relating to Proposed
Draw Game Services Contract Award to Scientific Games in Solicitation # ADSPO1400003979. Chair Conley asked all members of the public to leave the room and take all
materials, such as briefcases and backpacks, with them.
The public was invited back at 9:25 a.m. Chair Conley asked if any members of the
public would like to address the Commission regarding Proposed Draw Game Services
Contract Award to Scientific Games in Solicitation # ADSPO14-00003979. No response
from the public.
In accordance with A.R.S. §5-559 (C), Chair Conley entertained a motion to approve the
order and authorize the Director to issue the order regarding Proposed Draw Game
Services Contract Award in Solicitation # ADSPO14-00003979. Vice-Chair Love moved;
Commissioner Scutari seconded. All members voting aye, the motion carried.
In accordance with the vote, Chair Conley stated the award to Scientific Games will
become effective and binding once the Lottery Procurement Officer signs the offer and
acceptance.
12
Announcements The next Commission meeting will be held August 21, 2015, at 10:00
a.m.
Adjournment Chair Conley entertained a motion to adjourn; Commissioner Anderson
moved; Vice-Chair Love seconded. All members voting aye, motion carried. Meeting
adjourned at 9:29 a.m.
13
Agency Reports
Report to Arizona Lottery Commission
August 21, 2015
______________________________________________________________________
Retailer of the Year
Territory Manager of the Year
Director's Report (Attachment A)
Retailer Satisfaction Survey Results
Out-of-Stocks Review
Draw Game Changes
Pull-Tab Expansion
FY15 Year-End Product & Sales Report
The first section of this report focuses on individual product performance and is
provided by Barbara Anderson, Senior Products Manager. In the second section,
Raynie Hosto, Director of Sales, has provided information on retailer sales and rankings
in several different categories.
Sales for the fiscal year reached $749,974,340, an increase of 3.59% over the prior
year.
Sales breakdown by product line are:
Product
Scratchers®
Draw Games
Charitable PullTabs
Sales
$542,030,289
$202,803,437
$5,140,614
Market Share
72.3%
27.0%
0.7%
Chain and independent convenience stores account for 67.8% of total sales, with
grocery store category accounting for 27.2% of sales.
More detail is provided in the attached report, and staff is available to answer any
questions the Commission may have. These reports are detailed in Attachment B.
14
New Games Introduction
The following games were introduced since the last commission meeting: Blackjack
Tripler #913, Money Roll #924, Bring on the Bens #951, Golden Casino #960,
Crossword Deluxe #977, Triple Red 7’s #1011, Fast Jacks #1012, and Golden 7s
#1014.
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
07/07/15
07/07/15
07/07/15
07/07/15
07/07/15
07/07/15
07/07/15
07/07/15
07/07/15
07/07/15
07/07/15
07/07/15
07/07/15
08/04/15
Price
Point
$10
$2
$2
$5
$1
$1
$5
$5
$1
$10
$2
$1
$2
$2
Game
No.
900
920
921
943
946
949
952
953
954
955
956
966
967
940
Game Name
Lucky Life
Bingo
Crossword
Slingo® Trio
Triple 3s
I Love Cash
Cherry Tripler
Black Tie Bingo
Play 2 Win
Win It All
The Walking Dead®
5X the Cash
10X the Cash
Lucky Lines
Beginning
Inventory
5,584,560
9,675,300
14,615,550
2,015,760
1,761,300
1,755,000
1,258,800
2,922,540
1,754,100
1,133,280
1,221,600
2,517,900
2,766,750
1,508,700
% Sold
79.3%
97.5%
99.4%
98.3%
75.0%
85.4%
88.1%
97.7%
77.6%
87.3%
90.1%
95.0%
94.8%
67.2%
Events/Sponsorships
Lottery-sponsored events in July:
Asian Corporate and Entrepreneur Leaders – Regional Leadership Conference
Cornerstone Mission Project, Inc. – Divas' Night Out
Lottery-sponsored events in August:
Pawsitive Friendships - Program Sponsorship
Local First Arizona Foundation - Rural Policy Forum
Arizona Town Halls – Town Halls
Act One Foundation - Field Trip Program Serving Title One Students
15
ATTACHMENT A
16
Arizona Lottery
Dashboard
June 2015
Fiscal Year 2015
Arizona Lottery
FY 2015 Sales versus Projections
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
Actual Core Sales
Projection:
Actual Core:
Jackpot Lift:
Total Actual:
Difference:
% Difference:
Dec
Jan
Jackpot Lift
Feb
Mar
Projection
777,000,000
743,974,340
6,000,000
749,974,340
-27,025,660
-3.5%
* Total sales ended the year 3.5% below projections
* The Instant product line (Scratchers & Pull-tabs) at $547,170,903 finished 5.4% ahead of projections.
* Total draw game sales of $202,803,437 finished 21.4% below projections.
* The Multi-State draw games ended 25.3% below projections; in-state games at 10.9% below projections.
D-1
Apr
May
Jun
Arizona Lottery
Instant Sales
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
Jul
Aug
Sep
Oct
Nov
Scratchers
Projection:
Actual:
Difference:
% Difference:
Dec
Jan
Pull Tabs
Feb
Mar
Apr
May
Jun
Mar
Apr
May
Jun
Projection
519,000,000
547,170,903
28,170,903
5.4%
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
In-State
Projection:
Actual
Difference:
% Difference:
Nov
Dec
Multi-State
258,000,000
202,803,437
-55,196,563
-21.4%
D-2
Jan
Feb
Projection
Arizona Lottery
Multi-State Games
$18,000,000
$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
Powerball
Projection:
Actual
Difference:
% Difference:
Nov
Dec
Mega Millions
Jan
Feb
MMC
Mar
Apr
May
Jun
Projection
188,000,000
140,456,302
-47,543,698
-25.3%
In-State Games
$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
The Pick
Weekly Winnings
Projection:
Actual
Difference:
% Difference:
70,000,000
62,347,135
-7,652,865
-10.9%
Nov
Dec
Fantasy 5
All or Nothing
D-3
Jan
Feb
Mar
Pick 3
Projection
Apr
May
Jun
Arizona Lottery
FY 2015 versus FY 2014
Total Sales
90,000,000
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
FY 2014
FY 2015
FY 2014
% Change
Jan
Feb
Mar
FY 2015
749,974,340
723,954,296
3.6%
* Total sales ended the year 3.6% ahead of last year.
* The Instant product line (Scratchers & Pull-tabs) finished 12.1% ahead of last year.
* Total draw game sales ended 13.9% below last year.
* Sales of the multi-state games, Powerball, Mega Millions, and MMC finished 17.1% below last year.
* Sales of the in-state games finished 6.0% below last year.
D-4
Apr
May
Jun
Arizona Lottery
Total Instant Games
$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
FY 2014
FY 2015
FY 2014
% Change
Jan
Feb
Mar
Apr
May
Jun
FY 2015
547,170,903
488,290,554
12.1%
Total Draw Games
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
Jul
Aug
Sep
Powerball
FY 2015
FY 2014
% Change
Oct
Nov
Dec
Mega Millions
202,803,437
235,663,742
-13.9%
D-5
Jan
MMC
Feb
Mar
In-State
Apr
May
FY 2014
Jun
Arizona Lottery
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
FY 2014
FY 2015
FY 2014
% Change
Feb
Mar
Feb
Mar
Apr
May
Jun
FY 2015
140,456,302
169,334,094
-17.1%
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
FY 2014
FY 2015
FY 2014
% Change
62,347,135
66,329,648
-6.0%
D-6
Jan
FY 2015
Apr
May
Jun
8/5/2015
Arizona Lottery
Sales by Product - FY 2015
Month
Scratchers
Instant
Tabs
Total Instants
Powerball
Mega
Millions
The Pick /
EXTRA
MMC
Fantasy 5 /
EXTRA
Pick 3
All Or
Nothing
Weekly
Winnings
Total
Draw Games
Total
Sales
July
38,141,421
333,216
38,474,637
5,932,896
2,458,072
1,971,135
1,153,023
749,415
876,772
350,142
13,491,455
51,966,092
August
37,553,287
347,784
37,901,071
5,711,771
3,904,548
2,124,512
2,060,311
723,836
760,102
331,328
15,616,408
53,517,479
September
38,701,211
390,234
39,091,445
7,617,009
2,687,091
2,140,839
1,467,977
712,621
609,876
310,224
15,545,637
54,637,082
October
41,166,537
361,260
41,527,797
6,423,910
5,746,890
182,090
2,220,494
1,306,000
777,656
550,966
307,738
17,515,744
59,043,541
November
41,751,887
351,336
42,103,223
6,608,662
3,593,022
363,100
2,043,090
1,016,564
761,368
453,762
278,466
15,118,034
57,221,257
December
46,035,597
431,232
46,466,829
6,237,147
4,179,526
326,530
2,310,942
1,113,760
860,419
464,730
295,008
15,788,062
62,254,891
January
49,726,795
410,958
50,137,753
9,796,514
4,922,777
2,397,329
1,719,474
896,856
458,096
293,914
20,484,960
70,622,713
February
49,581,744
481,422
50,063,166
19,044,560
3,693,277
2,039,514
1,326,600
832,658
441,396
271,254
27,649,259
77,712,425
March
53,142,625
632,706
53,775,331
6,915,406
2,926,873
2,005,059
1,495,480
897,935
435,096
300,640
14,976,489
68,751,820
April
50,945,135
488,034
51,433,169
6,049,419
2,904,100
2,050,124
1,351,013
871,983
400,452
273,706
13,900,797
65,333,966
May
50,004,628
450,678
50,455,306
7,518,495
5,519,164
2,257,990
1,782,261
838,359
381,608
272,462
18,570,339
69,025,645
June
45,279,422
461,754
45,741,176
5,782,660
3,410,793
2,250,002
1,259,271
811,809
365,392
266,326
14,146,253
59,887,429
542,030,289
5,140,614
547,170,903
93,638,449
45,946,133
871,720
25,811,030
17,051,734
9,734,915
6,198,248
3,551,208
202,803,437
749,974,340
35,231,969
1,028,123
36,260,092
6,086,499
2,986,499
56,662
1,677,717
1,108,363
632,769
402,886
230,829
13,182,223
49,442,315
YTD Sales
YTD Rtlr
Commissions
% of Sales
Avg Mo Sales
72.3%
45,169,191
0.69%
428,385
73.0%
45,597,575
12.5%
7,803,204
6.1%
3,828,844
0.1%
290,573
D-7
3.4%
2,150,919
2.3%
1,420,978
1.3%
811,243
0.8%
516,521
0.5%
295,934
27.0%
17,118,216
100.0%
62,715,792
Annual Sales
Trailing 12 Month Periods
800.0
775.0
777.0
750.0
(Millions)
725.0
700.0
675.0
650.0
625.0
600.0
Twelve Months Ending
Actual
Goal
D-8
8/18/2015
Arizona Lottery
Transfers To Other State Funds
Month
Heritage
Game & Fish
Healthy
Arizona
State
General Fund
Mass Transit
LTAF II*
July
890,000
1,615,600
7,168,400
1,181,900
August
905,700
1,638,300
7,631,800
1,133,000
Homeless
Shelters
State General
Fund II
Arizona
Commerce
Authority
Univ Capital
Debt Service
**Approp Transfer
Dept of
Gaming
Automation
Projects
Fund***
Unclaimed
Prizes
AG & DPS****
C.A.S.A.
Total
Transfers
61,183
10,917,083
112,252
11,421,052
300,000
300,000
September
888,500
1,607,300
7,486,300
1,530,400
448,076
11,960,576
October
998,600
1,806,200
8,411,900
1,284,000
63,580
12,564,280
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
1,268,300
788,721
13,762,921
January
1,137,000
2,080,100
9,702,700
1,998,200
53,641
14,971,641
February
1,337,400
2,418,100
11,269,100
1,719,200
71,521
16,815,321
March
1,257,800
2,275,100
10,597,300
87,581
14,217,781
595,500
3,160,100
5,119,500
665,219
14,077,719
April
1,000,000
3,537,400
****Mandated Transfer
1,000,000
May
11,952,600
June
2,514,900
985,100
Profit Distribution
3,750,725
Final Profit Distribution
11,413,400
14,531,358
437,473
12,835,973
14,410,532
200,000
200,000
10,000,000
20,199,500
87,900,725
11,444,400
1,000,000
15,490,000
3,500,000
22,273,207
300,000
0
FY14 Transfers
10,000,000
18,120,000
95,096,449
11,262,600
1,000,000
15,490,000
3,500,000
17,572,624
300,000
713,600
D-9
63,858
10,659,807
YTD Transfers
*Clean Air Act
**Pursuant to Proposition 202 (Compulsive Gambling Treatment)
***Pursuant to HB2001, FY14 for BREAZ
****Pursuant to HB2517 (Victims' Rights)
1,000,000
1,000,000
2,914,197
2,565,380
176,022,029
175,620,653
8/18/2015
Arizona Lottery
Transfers To Other State Funds
By Product - FY 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
AG & DPS
Unclaimed
Prizes
C.A.S.A.
Total
Transfers
July
7,246,900
33,400
1,572,300
651,400
522,400
305,600
198,700
232,400
92,800
61,183
10,917,083
August
7,135,200
34,800
1,513,700
1,034,800
563,000
546,000
191,900
201,500
87,900
112,252
11,421,052
200,500
1,800
46,900
23,300
12,600
6,800
3,800
1,900
2,400
September
7,353,300
39,100
2,018,600
712,100
567,400
389,100
188,900
161,700
82,300
448,076
11,960,576
October
7,821,800
36,300
1,702,500
1,523,000
48,300
588,600
346,200
206,200
146,100
81,700
63,580
12,564,280
November
7,932,900
35,200
1,751,300
952,200
96,300
541,500
269,400
201,800
120,300
73,800
61,093
12,035,793
December
8,746,800
43,200
1,652,900
1,107,600
86,600
612,400
295,200
228,100
123,200
78,200
788,721
13,762,921
January
9,448,100
41,100
2,596,200
1,304,600
635,300
455,700
237,700
121,400
77,900
53,641
14,971,641
February
9,420,600
48,300
5,047,900
978,800
540,600
351,600
166,800
117,200
72,000
71,521
16,815,321
10,097,300
63,400
1,832,700
775,800
531,400
396,400
238,000
115,400
79,800
87,581
14,217,781
9,679,600
48,900
1,603,100
769,600
543,300
358,100
231,100
106,200
72,600
665,219
14,077,719
Gaming Department
March
April
HB2517 Victims' Rights
May
June
Profit Distribution
Final Profit Distribution
YTD Transfers
Transfer % of Total Sales
YTD Sales
300,000
1,000,000
9,500,900
45,100
1,992,500
1,462,600
598,400
472,300
222,200
101,200
1,000,000
72,300
63,858
437,473
14,531,358
8,603,100
46,200
1,532,500
903,900
596,300
333,800
215,200
96,900
70,600
10,414,932
98,800
1,799,200
882,800
16,800
496,000
327,600
187,100
119,100
68,200
14,410,532
144,500
1,400
25,000
12,300
200
6,900
4,500
2,600
1,700
900
200,000
113,746,432
617,000
26,687,300
13,094,800
248,200
7,356,100
4,858,300
2,720,100
1,766,200
1,013,400
15.2%
542,030,289
0.1%
5,140,614
3.6%
93,638,449
1.7%
45,946,133
0.0%
871,720
1.0%
25,811,030
0.6%
17,051,734
0.4%
9,734,915
0.2%
6,198,248
0.1%
3,551,208
1,000,000
12,835,973
2,914,197
176,022,029
0.4%
23.5%
749,974,340
% of Sales by Product
72.3%
0.7%
12.5%
6.1%
0.1%
3.4%
2.3%
1.3%
0.8%
0.5%
100.0%
% of Transfer by Product
21.0%
12.0%
28.5%
28.5%
28.5%
28.5%
28.5%
27.9%
28.5%
28.5%
23.1%
D - 10
FY15 Year-to-Date Budget Status
YEAR-END
Date:
6/30/2015
Elapsed: 100%
Budget
Personal Services
ERE
Professional & Outside
Travel In-State
Travel Out-of-State
Other Operating / Equip.
Percent
Expended
Balance
Comments
4,514,500
2,119,800
386,800
271,600
16,800
1,112,100
4,123,400
1,870,000
352,900
204,200
14,100
1,052,100
91%
88%
91%
75%
84%
95%
8,421,600
$ 7,616,700
90%
Advertising 1/
15,500,000
13,676,700
88%
1,823,300
Instant Tickets
On-Line Vendor Fees
Charitable Commissions
Retailer Commissions
19,698,200
7,503,700
1,028,100
49,903,900
10,474,600
7,080,500
1,028,100
49,847,000
53%
94%
100%
100%
9,223,600
423,200 remaining balance paid as admin adj.
56,900
$ 102,055,500
$ 89,723,600
88%
Operating Subtotal:
% of sales
Expenditures
thru June
Total Budget:
$
391,100
249,800
33,900
67,400
2,700
60,000
$
804,900
$ 12,331,900
NOTE: Expenses do not include administrative adjustments to be paid against the FY15 budget. There will be a
greater number of adjustments this year due to conversion to a new statewide accounting system.
Notes on Sales-Related Line Items:
Instant Tickets: Appropriated based on 3.6% of sales. The budget reflects actual instant ticket sales of $547.2 million for FY15.
On-Line Vendor Fees: Appropriation based on percentage of on-line sales as determined by contract. The budget reflects actual
on-line ticket sales of $202.8 million for FY15.
Charitable Commissions: The compensation rate is 20% of instant tab ticket sales. The budget reflects actual charitable game
sales of $5.1 million for FY15.
Retailer Commissions: The compensation rate is 6.5% base plus up to an additional .5% based on performance criteria. The
budget reflects total sales (less instant tab sales) of $744.8 million at the JLBC estimated compensation rate of 6.7%; the actual
compensation rate was 6.7 %.
D - 11
Arizona Lottery
Ticket Vending Machine - Monthly Out-of-Stock Averages
7
6
5.2
5
5.0
4.7
5.0
4.5
4.7
4
4.2
4.2
4.1
4.1
Oct
Nov
4.0
3.9
3
2
July
Aug
Sept
FY 2012
Dec
FY 2013
Jan
FY 2014
D - 12
Feb
Mar
FY 2015
Apr
May
June
Arizona Lottery
Ticket Vending Machine Sales
$25.0
$20.0
$19.4
$19.0
$17.8
$16.4
$16.1
Oct
Nov
$15.5
$15.0
$14.0
$14.0
Jul
Aug
$18.1
$18.9
$18.8
$17.0
$10.0
$5.0
$0.0
Sept
FY 2012
Dec
FY 2013
D - 13
Jan
FY 2014
Feb
Mar
FY 2015
Apr
May
June
Draw Games - Advertised Jackpot Comparisons
June FY2015 vs FY2014
Powerball
06/06/15
06/13/15
06/20/15
06/27/15
Total Monthly Sales
Mega Millions
06/06/15
06/13/15
06/20/15
06/27/15
Total Monthly Sales
The Pick
06/06/15
06/13/15
06/20/15
06/27/15
Total Monthly Sales
Wed
$188.0
$50.0
$70.0
$40.0
FY2015 Jackpot
Sat
Wkly Sales
$40.0
$1.72
$60.0
$1.27
$80.0
$1.33
$50.0
$1.35
$5,782,660
Tue
$253.0
$20.0
$35.0
$52.0
$7,302,212
FY2015 Jackpot
Fri
Wkly Sales
$15.0
$1.25
$26.0
$0.63
$44.0
$0.64
$64.0
$0.69
$3,410,793
Wed
$1.9
$2.1
$2.3
$2.5
Wed
$192.0
$257.0
$50.0
$70.0
FY2014 Jackpot
Sat
Wkly Sales
$221.0
$2.28
$40.0
$2.19
$60.0
$1.27
$80.0
$1.35
Tue
$34.0
$55.0
$15.0
$25.0
FY2014 Jackpot
Fri
Wkly Sales
$46.0
$0.58
$66.0
$0.63
$20.0
$0.51
$33.0
$0.52
$2,329,347
FY2015 Jackpot
Sat
Wkly Sales
$2.0
$0.54
$2.2
$0.53
$2.4
$0.53
$2.7
$0.53
$2,250,002
Wed
$1.0
$1.1
$1.2
$1.3
FY2014 Jackpot
Sat
Wkly Sales
$1.1
$0.47
$1.2
$0.47
$1.3
$0.46
$1.0
$0.45
$1,920,635
Jackpot and weekly sales amounts are in millions
High jackpot for the period
D - 14
ATTACHMENT B
17
Arizona Lottery
FY2015 Year-End – Product Review
As part of a quarterly review process, we will report to the agency on the performance of the individual lottery products
including both draw and instant games. The information contained in this report includes the following:
•
•
•
•
•
General overview of the fiscal year
A top line review of sales performance of each product
A summary review by price point for the instant games
A top down look at the top performing games by revenue and tickets
A review of new game introductions and game endings
General Overview
Sales for FY15 reached a new high of $749,974,340, an increase of 3.6% over the previous fiscal year.
product is as follows:
®
Scratchers
Draw Games
Charitable Pull-Tabs
Total
The breakdown by
1st Quarter
$114,395,919
2nd Quarter
$128,954,021
3rd Quarter
$152,451,164
4th Quarter
$146,229,185
Total
$542,030,289
Mkt Share
72.3%
$44,653,500
$1,071,234
$160,120,653
$48,421,840
$1,143,828
$178,519,689
$63,110,708
$1,525,086
$217,086,958
$46,617,389
$1,400,466
$194,247,040
$ 202,803,437
$5,140,614
$749,974,340
27.0%
0.7%
As indicated in the chart above, the Scratchers i contribution to total sales exceeded the draw games in each quarter of the year
and represented 72.3% of total sales. The market share for draw games continued to decline this fiscal year. The balance of
instant game sales with higher prize payouts versus the draw games with the lower payouts has a direct impact on beneficiary
transfers. Sales detail by game is provided in Attachments A and B.
Charitable Pull-Tabs
The charitable games program, first introduced in January 2011, has seen continuous growth year over year. Sales for this
year reached a high of $5.1 million, a 17% increase over the previous year. That translates into more than $1 million in
commissions earned by these organizations to support their programs. There are currently 113 charitable organizations
selling the games.
Product Review
Page 2
Scratchers Games
The sales for Scratchers remained strong the entire fiscal year, with each month exceeding the same period the prior year,
resulting in a 12% increase for the year. March sales of more than $53 million set an all-time record high for an individual
month. From December through the end of the fiscal year, weekly sales surpassed $10 million each week and reached an alltime high of more than $13 million in early February.
Based on validations, players have also benefitted from the higher sales, earning more than $379 million in prizes. The
prizes paid calculated against the sales revenues equate to an average payout of 70%. The Lucky Life series of games, with
higher than standard payouts, contributed to the increased prize expense this fiscal year. With those games now out of
market, the average payout will decline slightly in FY 2016.
A total of 54 new games have been introduced this fiscal year. Combined with the games carried forward, a total of 105
games contributed to the sales revenues.
Price Point
# New Games
Carried Forward
$1
12
10
$2
11
14
$3
4
2
$5
14
14
$10
12
7
$20
1
4
During this same period 47 games were ended. Seventeen of the games were ended because the last top prize had been
redeemed. The remaining games were ended as part of the standard quarterly game ending process either because the
intended sales period had expired or the game had reached 90% sell through. Having games ended with the last top prize
redeemed or the 90% sell through are positive indications of the continued success of the Scratchers product mix.
Sales by price point
The total number of tickets at the $1, $2 and $3 price points continues to represent the largest volume of tickets sold with
58.3% but represent only 23.2% of the revenues. During this same period the $5, $10 and $20 games accounted for 41.7% of
the tickets sold and 76.8% of the revenues. The higher price point games continue to grow, with the largest increase at the
$20 price point; from 12.9% of the market at the end of last year to 22.7% this year. The chart below shows the breakdown
of tickets and dollars for FY15. The charts on Attachment C show a comparable breakdown for the most recent five years.
Sales for both the $2 and $5 games saw a decline from the previous year. This is the first year to see a decline in sales at the
$5 level and is likely a result of fewer games being introduced at that price point. The $20 price point represented the largest
increase in sales going from $61 million in FY14 to more than $120 million this year. The spotlight game, $185 Million
Cash Explosion, generated more than $84.2 million of the total $20 market.
Product Review
Page 3
We continue to stress the importance of sustaining sales of the lower price points in order to maintain a higher level of
beneficiary transfers. The payout percentage increases as the price of tickets increases and the rate of return decreases. For
each $1 million in sales at the $1 price point, approximately 29.6% is available for beneficiary transfers. This compares to
only 13.6% of $1 million in sales at the $20 price point. Efforts continue to optimize the overall prize payout on the
Scratchers product line without impacting the sales performance of the games.
Another way to look at sales and prizes is to examine the cost of prizes for each price point. The table below shows the sales
and prize costs in both dollars and percentages by price point. Ideally, the percentage of sales and the percentage of prize
cost should be equally balanced within the price point. The $1, $2 and $3 games remain the most profitable in terms of prize
cost. Together these games represent 23.2% of the sales revenues but only 20.8% of the prize cost. At the other end of the
spectrum are the higher price point games with 76.8% of the revenues but 79.3% of the prize cost.
The increased velocity of the higher price point games also has a direct impact on the unclaimed prize fund. A portion of this
fund is used to supplement games with higher prize payouts. As a larger portion of the sales growth is at the higher price
points, the greater the dependence on the unclaimed prize fund.
Sales
% of Sales
Prizes
% of Prize Cost
$1
$21,852,857
4.0%
$12,394,782
3.3%
$2
$86,110,390
15.9%
$55,064,848
14.5%
$3
$17,793,777
3.3%
$11,283,483
3.0%
$5
$150,203,925
27.7%
$103,700,223
27.3%
$10
$145,784,060
26.9%
$105,693,285
27.9%
$20
$120,285,280
22.2%
$91,345,120
24.1%
Top 10 games
The Crossword and Bingo style games continue to be strong in the market with more than $157 million in sales, representing
29% of total instant sales. The top performer with more than $84.2 million in sales for the year was the $20 spotlight game,
$185 Million Cash Explosion. This game represented 15.5% of the total instant sales.
The table below identifies the top 10 games in terms of sales revenue generated and total tickets sold for the year.
Top 10 games in sales revenue
Name
$20 $185M Cash Explosion
$2
Crossword
$10 Lucky Life
$20 Unlocked Fortune
$10 Triple Red 7’s
$5
Lucky Life
$5
Cash & Carry Crossword
$2
Bingo
$5
Daily Crossword
$5
Black Tie Bingo
Sales Revenue
$84,280,600
$29,585,026
$24,215,050
$21,080,400
$20,179,640
$17,537,340
$17,092,985
$17,019,502
$16,878,395
$14,321,145
Top 10 games in tickets sold
Name
$2
Crossword
$2
Bingo
$2
Red Hot 7’s
$1
Lucky Life
$2
Lucky Life
$20 $185M Cash Explosion
$5
Lucky Life
$5
Cash & Carry Crossword
$5
Daily Crossword
$2
Black Tie Bingo
Tickets Sold
14,792,513
8,509,751
4,983,668
4,590,336
4,475,937
4,214,030
3,507,468
3,418,597
3,375,679
2,864,229
Holiday Games
A total of five holiday games were introduced in early October. Holiday game sales are generally strong and this fiscal year
was no exception with more than $21.5 million in sales. This represents an increase of 4.39% over last year’s holiday games.
The holiday games include a crossword style game, but this year the game was moved from a $2 price point to a $3. This
resulted in a 20% increase in sales of a holiday crossword game.
Product Review
Page 4
January Series of Games
For the past several years, we have been introducing a “family” of games in January as replacements for the out-going
holiday games. The new games all have a similar look and theme and are offered at multiple price points. Last year’s games,
the Lucky Life series were still in the market this year and generated more than $55.2 million in sales. In an effort to not
directly compete with those still popular games, we wanted to take a different approach to the family of games for FY15.
Based on recommendations from our print vendors, we elected to introduce a multiplier family, 5X the Cash, 10X the Cash,
20X the Cash and 50X the Cash. This series of games have been very popular in many other lottery jurisdictions and was
equally as successful in Arizona. The $1 game was out of inventory in 10 weeks, the $5 game in 12 weeks and the $2 game
in 15 weeks. This represents some of the best performance in a family series of games. The games generated more than
$31.8 million in sales.
Second Chance Drawing Games
Games offering second chance opportunities for players to win cash or merchandise prizes have become very popular with
the instant product. Each year we offer at least two games with second chance opportunities. The first game this year was
the Tailgate Cash game at the $5 price point. With the Super Bowl being held in Arizona we wanted to take advantage of the
football excitement. The game offered players the chance to win one of 20 Ultimate Fan Cave prize packages. The packages
included 2 recliners, a 55” VIZIO LED Smart HDTV, an 84-can beverage cooler, a gas grill and a $300 VISA gift card.
Winners could elect to take the cash option of $2,500 in lieu of the merchandise prize.
In April the MONOPOLY™ Millionaires’ Club $5 instant game went on sale. Players can enter their non-winning tickets
into the second chance drawing for a chance to win a trip to Las Vegas and be a studio audience member of the
MONOPOLY Millionaires’ Club syndicated television game show joining players from all the participating lottery
jurisdictions. Players are grouped into five sections with one player from each section selected as a contestant on the game
show. Each of the five selected contestants will play a variety of MONOPOLY-themed games for a chance to win cash
prizes. Prize money won by that contestant is shared by all the players in that section, with the contestant winning half and
the other half shared evenly among the other players in that section. One of the five game show contestants has the
opportunity to play for a $1 million prize. Arizona players can view the show on Saturday nights in Phoenix (KTVK) at 8
pm, in Tucson (KMSB) at 10 pm and in Yuma (KECY-DT2) at 6 pm.
Draw Games
Total sales of draw games for the year reached $202,803,437, a decrease of 13.8% from last year.
Draw Games – Multi-State Games
®
®
The current multi-state games consist of Powerball and Mega Millions . Both Powerball and Mega Millions are jackpot
games with sales driven primarily based on the size of the jackpots. A few years ago, player excitement on these games
would build as the jackpots approached the $200 million range. Now that excitement level doesn’t occur until the jackpots
reach or exceed the $300 million range. Sales increases, draw over draw, are very dramatic at that level. Unfortunately, the
frequency of jackpots getting won at the lower levels on both Powerball and Mega Millions is having a direct impact on
sales. The directors of the MUSL organization continue to explore options to make both of these games more productive for
all the lottery jurisdictions.
In February, the Lottery introduced an advertising campaign aimed at attracting players to the lower jackpots. The goal was
to make players aware that every jackpot, regardless of the size, is life-changing. Unfortunately, the campaign did not have
the expected impact on sales velocity at the lower jackpots and was discontinued.
Powerball – Sales for Powerball totaled $93,638,449, a decrease of 17.2% from the prior year. The only jackpot this year
high enough to generate real excitement was in February when it reached $564.1 million. That jackpot grew over 21
drawings and generated more than $31 million in Arizona sales. In January 2012, the game was moved to a $2 price point.
Product Review
Page 5
The first full year of sales at the $2 price point was very positive with sales in all jurisdictions showing increases. However,
the lack of significant jackpots in both FY 2014 and 2015 has resulted in a continuing decline in sales across all jurisdictions.
In FY2014 Powerball sales dropped by 19.09% followed in FY2015 with a 17.24% decline. The current game changes that
become effective October 4, 2015 are designed to help turn the game around and generate higher jackpots.
Mega Millions – Sales for Mega Millions totaled $45,946,133, a decrease of 18.4% from the prior year. The highest jackpot
reached during this fiscal year was $321 million in early November followed by a $270 million jackpot in mid-January.
Mega Millions sales across all jurisdictions were 15.23% below FY2014.
MONOPOLY MILLIONAIRES’ CLUB – On October 19, Arizona joined 22 other lottery jurisdictions to offer this newest
multi-state game. This new game is the first $5 draw game in lottery history. The unique game was designed to spread the
wealth among players by offering multiple million dollar prizes in conjunction with a Top Prize ranging from $15-$25
million. Sales for the game were suspended after the drawing on December 26.
Arizona joined with 13 other lottery jurisdictions to offer an instant MONOPOLY MILLIONAIRES’ CLUB game. This $5
game went on sale April 7. Like the draw game, players are able to enter non-winning tickets into a drawing for chance to
win a trip to Las Vegas and be an audience member of the TV Game Show joining players from all the participating lottery
jurisdictions. The first drawing from the instant game was held on June 30, 2015. Five players from Arizona were sent to
Las Vegas to participate as studio audience members. Five audience members are randomly selected to play a variety of
MONOPOLY-themed games for a chance to win cash prizes. One of the five game show contestants will have the
opportunity to play for a $1 million prize.
Response to the TV Game Show has been positive. The first season of the show has been completed. New episodes for the
second season will begin airing in September. In the first season, more than $5 million in cash and prizes was awarded to
contestants and audience members, including two $1 million grand prizes.
Draw Games – In-State Games
The in-state games experienced a 6% decline in sales from the prior year. Only Fantasy 5, Pick 3 and the new All Or
Nothing game showed an increase year over year.
The Pick™ – Sales for The Pick were $25,811,030, a decrease of 15.1% from the prior year. In mid-October the jackpot
reached a high of $3 million and $2.8 million in late January. The jackpots start at $1 million but because of lower sales
velocity, they grow at a much slower pace than the multi-state jackpot games. The lower sales velocity also means the
jackpot is underfunded for several draws. Normally in the course of a fiscal year, this underfunding will balance out as sales
increase and the jackpot does not get hit. When the jackpot does get hit at an underfunded level, unclaimed prize money is
used to supplement the prize. In FY15 the jackpot got hit six times at an underfunded level which resulted in supplementing
more than $3.1 million from the unclaimed prize fund. Moving forward we are exploring ways to reduce that prize liability
of underfunded jackpots.
Fantasy 5™ – Sales for Fantasy 5 were $17,051,734, an increase of 3.9% over last fiscal year. High jackpots this past year
included $535,000 in September, $369,000 in January and $404,000 in May. On three other occasions the jackpot surpassed
$220,000. All of these higher jackpots contributed to the growth in sales for the game.
Pick 3™ – Sales for Pick 3 were $9,734,915, an increase of 5.8% over last fiscal year. Sales for this game remain fairly
consistent year after year, averaging approximately $700,000 per month. Other than increasing the number of drawings per
week or per day, there are limited options available for changes to this type of game play. The Lottery continues to explore
some of the variations offered in other states to help increase sales of the game.
Product Review
Page 6
Weekly Winnings™ – Sales for Weekly Winnings were $3,551,208, a decrease of 37.5% from the same period last year.
The game was introduced in late September 2012 with a projected life of 18-24 months. A decision to replace the game has
been made and this game will be discontinued in October 2015.
All Or Nothing™ - The newest game for Arizona was introduced in May 2014 and ended this fiscal year with $6,198,248 in
sales. This game offers players the chance to win by matching all of the numbers drawn or none of the numbers drawn.
i
Scratchers is a registered service mark of the California Lottery.
ARIZONA LOTTERY
QUARTERLY SALES BY PRODUCT
Fiscal Year 2015 - July 2014 through June 2015
Month
July 2014
Powerball
$5,932,896
Mega
Millions
MONOPOLY
Millionaires'
Club
$2,458,072
The Pick
Fantasy 5
Pick 3
$1,971,135
$1,153,023
$749,415
Weekly
Winnings
$350,142
All Or
Nothing
$876,772
Total
Draw Games
$13,491,455
Scratchers
$38,141,421
Charitable
Pull-Tabs
$333,216
% of Total
Sales
Total
$51,966,092
7%
August
$5,711,771
$3,904,548
$2,124,512
$2,060,311
$723,836
$331,328
$760,102
$15,616,408
$37,553,287
$347,784
$53,517,479
7%
September
$7,617,009
$2,687,091
$2,140,839
$1,467,977
$712,621
$310,224
$609,876
$15,545,637
$38,701,211
$390,234
$54,637,082
7%
1st Quarter
$19,261,676
$9,049,711
$6,236,486
$4,681,311
$2,185,872
$991,694
$2,246,750
$44,653,500
$114,395,919
$1,071,234
$160,120,653
21%
October
$6,423,910
$5,746,890
$182,090
$2,220,494
$1,306,000
$777,656
$307,738
$550,966
$17,515,744
$41,166,537
$361,260
$59,043,541
8%
November
$6,608,662
$3,593,022
$363,100
$2,043,090
$1,016,564
$761,368
$278,466
$453,762
$15,118,034
$41,751,887
$351,336
$57,221,257
8%
December
$6,237,147
$4,179,526
$326,530
$2,310,942
$1,113,760
$860,419
$295,008
$464,730
$15,788,062
$46,035,597
$431,232
$62,254,891
8%
$19,269,719
$13,519,438
$871,720
$6,574,526
$3,436,324
$2,399,443
$881,212
$1,469,458
$48,421,840
$128,954,021
$1,143,828
$178,519,689
24%
January
$9,796,514
$4,922,777
$2,397,329
$1,719,474
$896,856
$293,914
$458,096
$20,484,960
$49,726,795
$410,958
$70,622,713
9%
February
$19,044,560
$3,693,277
$2,039,514
$1,326,600
$832,658
$271,254
$441,396
$27,649,259
$49,581,744
$481,422
$77,712,425
10%
2nd Quarter
March
$6,915,406
$2,926,873
$2,005,059
$1,495,480
$897,935
$300,640
$435,096
$14,976,489
$53,142,625
$632,706
$68,751,820
9%
$35,756,480
$11,542,927
$6,441,902
$4,541,554
$2,627,449
$865,808
$1,334,588
$63,110,708
$152,451,164
$1,525,086
$217,086,958
29%
April
$6,049,419
$2,904,100
$2,050,124
$1,351,013
$871,983
$273,706
$400,452
$13,900,797
$50,945,135
$488,034
$65,333,966
9%
May
$7,518,495
$5,519,164
$2,257,990
$1,782,261
$838,359
$272,462
$381,608
$18,570,339
$50,004,628
$450,678
$69,025,645
9%
June 2015
$5,782,660
$3,410,793
$2,250,002
$1,259,271
$811,809
$266,326
$365,392
$14,146,253
$45,279,422
$461,754
$59,887,429
8%
$19,350,574
$11,834,057
$6,558,116
$4,392,545
$2,522,151
$812,494
$1,147,452
$46,617,389
$146,229,185
$1,400,466
$194,247,040
26%
FY 2015
$93,638,449
$45,946,133
$25,811,030
$17,051,734
$9,734,915
$3,551,208
$6,198,248
$202,803,437
$542,030,289
$5,140,614
$749,974,340
FY 2014
$113,038,643
$56,295,451
$30,384,743
$16,409,700
$9,203,729
$5,679,494
$1,735,874
$235,663,742
$483,895,812
$4,394,742
$723,954,296
3rd Quarter
4th Quarter
% of Change
Mkt Share
-17.2%
-18.4%
12.5%
6.1%
$871,720
0.1%
-15.1%
3.9%
5.8%
-37.5%
3.4%
2.3%
1.3%
0.5%
0.8%
-13.9%
12.0%
17.0%
27.0%
72.3%
0.7%
3.6%
Attachment A
ARIZONA LOTTERY
QUARTERLY SALES BY PRODUCT
Fiscal Year 2015 - July 2014 through June 2015
Pull-Tabs
0.7%
Multi-State
Games
18.3%
Multi-State Games Powerball
Mega Millions
MONOPOLY Millionaires' Club
In-State
Games
9.2%
Scratchers
72.3%
In-State Games The Pick
Fantasy 5
Pick 3
Weekly Winnings
All Or Nothing
Attachment B
Arizona Lottery
5-Year Review by Price Point
Based on Dollars Sold
100%
12.9%
22.2%
90%
80%
29.4%
70%
9.7%
9.9%
8.9%
30.0%
27.6%
28.4%
$20
26.9%
$10
60%
50%
40%
30%
10%
28.9%
$5
4.0%
$3
3.0%
2.4%
3.7%
3.3%
20%
31.5%
31.4%
30.9%
27.7%
21.8%
23.0%
24.3%
15.9%
19.4%
4.0%
3.8%
4.7%
4.9%
5.5%
$2
$1
0%
FY 2015
FY 2014
FY 2013
FY 2012
FY 2011
FY 2015
FY 2014
FY 2013
FY 2012
FY 2011
$1
$2
$3
$5
$10
$20
$21,852,857
$86,110,390
$17,793,777
$150,203,925
$145,784,060
$120,285,280
$20,900,842
$92,970,362
$15,624,093
$153,051,335
$140,218,320
$61,130,860
$19,945,234
$92,194,924
$13,626,693
$137,111,780
$122,702,850
$51,018,120
$20,254,733
$94,078,462
$12,347,787
$129,118,785
$113,263,350
$40,713,620
$20,704,014
$90,753,504
$14,963,106
$107,919,325
$106,029,980
$33,082,260
Total
$542,030,289
$483,895,812
$436,599,601
$409,776,737
$373,452,189
Based on Tickets Sold
2.6%
100%
90%
5.0%
12.0%
80%
24.7%
12.0%
25.2%
1.8%
1.9%
11.5%
10.1%
24.0%
23.3%
20.6%
3.7%
4.8%
$20
70%
60%
4.9%
5.0%
35.4%
39.7%
1.6%
10.2%
3.0%
$10
$5
50%
40%
$3
43.3%
42.5%
41.8%
$2
30%
$1
20%
10%
18.0%
19.7%
18.3%
17.8%
15.4%
0%
FY 2015
FY 2014
FY 2013
FY 2012
FY 2011
FY 2015
FY 2014
FY 2013
FY 2012
FY 2011
$1
$2
$3
$5
$10
$20
21,852,857
43,055,195
5,931,259
30,040,785
14,578,406
6,014,264
20,900,842
46,485,181
5,208,031
30,610,267
14,021,832
3,056,543
19,945,234
46,097,462
4,542,231
27,422,356
12,270,285
2,550,906
20,254,733
47,039,231
4,115,929
25,823,757
11,326,335
2,035,681
20,704,014
45,376,752
4,987,702
21,583,865
10,602,998
1,654,113
Total
121,472,766
120,282,696
112,828,474
110,595,666
104,909,444
Attachment C
Arizona Lottery
FY 2015 Year-End – Retailer Sales Review
LXP/ITVM Sales (Chart E)
Through FY2015, draw game sales through the ticket vending machines account for 6.3% of total sales and
Scratchers® sales through the machines account for 37.8% of total sales. Total sales in the vending
machines increased over 14% year-over-year or nearly $27,000,000. This growth is due to an increase in
Scratchers sales.
The increase in Scratchers sales through the machine typically could lead to an increase in out-of-stocks
due to the increased demand however, out-of-stocks remained consistent at a 4.5% yearly average. During
the first two quarters of the FY2015, out-of-stocks decreased and during the third and fourth quarters outof-stocks were flat or increased slightly.
Corporate Account Review (Chart F)
•
•
•
Major retail chains represent 55.5% of all lottery accounts. Convenience stores represent 41.9% while
chain food stores represent 13.5% of the major chain accounts.
Major retail chains comprise 75.5% of the total market share at the Lottery with convenience stores
and food stores accounting for 49.7% and 25.8% respectively.
The chain with the highest per store sales average is Fry’s at $725,461. QuikTrip and Albertsons follow
with per store sales averages of $624,138 and $496,911 respectively.
Business Classification Review (Charts G and H)
Collectively, chain and independent convenience stores represent 72.3% of total Lottery accounts and
67.8% total sales. Chain and independent grocery stores represent 15.7% of total Lottery accounts and
27.2% total sales. These figures remain consistent with the previous fiscal year.
County Review (Charts I and J)
•
•
•
Maricopa and Pima counties combined represented 76.5% of the total market share for sales. The
remaining counties represent 23.5% of sales.
Per store weekly sales averages by county reveal the top three counties are Maricopa at $280,582, Pinal
at $239,325 and Mohave at $227,572.
Greenlee County posted the highest per capita sales at $4.39 followed by La Paz at $3.51 and Mohave at
$3.30. The overall weekly per capita increased from FY14 at $2.16 to $2.24 in FY15.
Arizona Lottery
Lottery Express / ITVM Review
FY 2015
# of
Units
(Qtlr Avg)
Per Unit
Game
Capacity
Lottery Express
739
24
$
40,779,256
ITVM
98
24
$
2,700,007
$
43,479,263
1st Quarter Total
837
Instant
Sales
% of Lottery Sales
Draw
Sales
Lottery Express
738
$
48,289,982
97
$
3,175,018
24
835
$
51,465,000
% of Lottery Sales
Lottery Express
712
$
51,954,179
97
24
$
3,454,706
809
$
55,408,885
% of Lottery Sales
Lottery Express
ITVM
4th Quarter Total
$
$
24
$
51,215,984
98
$
3,479,434
834
$
54,695,418
% of Lottery Sales
2,878,819
3,131,584
3,131,584
$
$
3,612,109
3,612,109
43,658,075
$
59,077
$
2,700,007
$
27,551
$
46,358,082
51,421,566
$
69,677
$
3,175,018
$
32,732
$
54,596,584
$
55,566,288
$
78,043
$
3,454,706
$
35,616
$
59,020,994
5.0%
27.4%
$
3,080,195
$
$
3,080,195
54,296,179
$
73,772
$
3,479,434
$
35,504
$
57,775,613
6.6%
4.6%
30.0%
192,239,401
$
12,702,707
$
204,942,108
Total ITVM
$
12,809,165
$
-
$
12,809,165
Total Fiscal Year
$
205,048,566
$
12,702,707
$
217,751,273
6.3%
4.2%
30.8%
$
37.8%
4.0%
$
Total Lottery Express
% of Total Sales
Average
Out-of-Stock
Percentage
29.1%
5.7%
37.4%
Per Unit
Average
$
6.5%
36.3%
736
2,878,819
6.4%
39.9%
ITVM
3rd Quarter Total
$
38.0%
ITVM
2nd Quarter Total
$
Total
Sales
29.2%
Chart E
ARIZONA LOTTERY
CORPORATE ACCOUNT REVIEW
Fiscal Year 2015
July 2014 through June 2015
Total Draw Games
Scratchers
Accts
Accts
4 Sons
7-Eleven
Carioca
Circle K
CST Brands
Express Stop
Giant
Jackson's Food Stores
Loves
Maverik
Pilot Travel Centers
Quik Mart
QuikTrip
Shay's
Superpumper
Super Stop/Minit Market
Terribles
Woody's
21
68
34
595
64
15
90
11
11
19
12
26
109
19
11
36
8
18
0.7%
2.2%
1.1%
19.5%
2.1%
0.5%
2.9%
0.4%
0.4%
0.6%
0.4%
0.9%
3.6%
0.6%
0.4%
1.2%
0.3%
0.6%
$2,265,227
$3,630,147
$1,513,573
$45,863,985
$5,531,416
$625,092
$3,769,688
$1,012,903
$455,106
$1,495,973
$571,111
$1,648,687
$17,833,893
$1,096,517
$1,197,284
$1,088,018
$308,837
$483,101
1.1%
1.8%
0.7%
22.6%
2.7%
0.3%
1.9%
0.5%
0.2%
0.7%
0.3%
0.8%
8.8%
0.5%
0.6%
0.5%
0.2%
0.2%
$107,868
$53,385
$44,517
$77,082
$86,428
$41,673
$41,885
$92,082
$41,373
$78,735
$47,593
$63,411
$163,614
$57,711
$108,844
$30,223
$38,605
$26,839
$4,831,224
$14,421,406
$3,863,164
$145,676,633
$15,085,576
$1,448,587
$10,868,196
$1,833,709
$1,241,995
$3,169,046
$1,816,815
$4,689,091
$50,197,163
$3,326,652
$2,687,430
$3,072,170
$1,051,491
$1,702,404
0.9%
2.7%
0.7%
26.9%
2.8%
0.3%
2.0%
0.3%
0.2%
0.6%
0.3%
0.9%
9.3%
0.6%
0.5%
0.6%
0.2%
0.3%
$230,058
$212,080
$113,622
$244,835
$235,712
$96,572
$120,758
$166,701
$112,909
$166,792
$151,401
$180,350
$460,524
$175,087
$244,312
$85,338
$131,436
$94,578
$7,096,451
$18,051,553
$5,376,737
$191,540,618
$20,616,992
$2,073,679
$14,637,884
$2,846,612
$1,697,101
$4,665,019
$2,387,926
$6,337,778
$68,031,056
$4,423,169
$3,884,714
$4,160,188
$1,360,328
$2,185,505
1.0%
2.4%
0.7%
25.7%
2.8%
0.3%
2.0%
0.4%
0.2%
0.6%
0.3%
0.9%
9.1%
0.6%
0.5%
0.6%
0.2%
0.3%
$337,926
$265,464
$158,139
$321,917
$322,141
$138,245
$162,643
$258,783
$154,282
$245,527
$198,994
$243,761
$624,138
$232,798
$353,156
$115,561
$170,041
$121,417
$461,269
$1,173,351
$349,488
$12,450,140
$1,340,104
$134,789
$951,462
$185,030
$110,312
$303,226
$155,215
$411,956
$4,422,019
$287,506
$252,506
$270,412
$88,421
$142,058
Safeway Gas
Fry's Gas
30
82
1.0%
2.7%
$1,109,421
$1,838,476
0.5%
0.9%
$36,981
$22,420
$2,159,859
$3,579,652
0.4%
0.7%
$71,995
$43,654
$3,269,280
$5,418,128
0.4%
0.7%
$108,976
$66,075
$212,503
$352,178
Convenience Total
1279
41.9%
$93,338,455
46.0%
$72,978
$276,722,263
51.1%
$216,358
$370,060,718
49.7%
$289,336
$24,053,947
Albertson's
Bashas'
Bashas' Food City
Fry's
Haggen
Los Altos Ranch Market
Safeway
Walmart
41
52
45
120
10
7
113
25
1.3%
1.7%
1.5%
3.9%
0.3%
0.2%
3.7%
0.8%
$7,045,806
$6,634,554
$728,639
$29,444,249
$86,125
$126,618
$19,055,033
$170,835
3.5%
3.3%
0.4%
14.5%
0.0%
0.1%
9.4%
0.1%
$171,849
$127,588
$16,192
$245,369
$8,613
$18,088
$168,629
$6,833
$13,327,553
$13,392,368
$6,073,680
$57,611,038
$282,600
$1,208,655
$35,967,401
$1,048,859
2.5%
2.5%
1.1%
10.6%
0.1%
0.2%
6.6%
0.2%
$325,062
$257,546
$134,971
$480,092
$28,260
$172,665
$318,296
$41,954
$20,373,359
$20,026,922
$6,802,319
$87,055,287
$368,725
$1,335,273
$55,022,434
$1,219,694
2.7%
2.7%
0.9%
11.7%
0.0%
0.2%
7.4%
0.2%
$496,911
$385,133
$151,163
$725,461
$36,873
$190,753
$486,924
$48,788
$1,324,268
$1,301,750
$442,151
$5,658,594
$23,967
$86,793
$3,576,458
$79,280
Food Store Total
413
13.5%
$63,291,859
31.2%
$153,249
$128,912,154
23.8%
$312,136
$192,204,013
25.8%
$465,385
$12,493,261
Major Chains
1692
55.5%
$156,630,314
77.2%
$92,571
$405,634,417
74.8%
$239,737
$562,264,731
75.5%
$332,308
$36,547,208
All Stores
3051
$66,471
$542,030,289
$177,657
$744,833,726
$244,128
$48,414,192
$202,803,437
Per Store
Share
Average
Sales
Market
Per Store
Share
Average
Commission
% of
Sales
Market
All Products Combined
# of
Sales
Market
Per Store
Earned
Share
Average
To Date
Chart F
ARIZONA LOTTERY
BUSINESS CODE REVIEW
Fiscal Year 2015
Total Draw Games
Scratchers
Accts
Accts
Shopping Malls
4
0.1%
$104,961
0.1%
$26,240
$179,893
0.0%
$44,973
$284,854
0.0%
$71,214
$18,516
Smoke/Gift Shops - Newstands
92
3.0%
$1,573,387
0.8%
$17,102
$5,570,363
1.0%
$60,547
$7,143,750
1.0%
$77,649
$464,344
Chain Supermarkets
412
13.5%
$64,043,756
31.6%
$155,446
$129,438,181
23.9%
$314,170
$193,481,937
26.0%
$469,616
$12,576,326
Sales
Per Store
Share
Average
Sales
Market
Per Store
Share
Average
Commission
% of
Business Classification
Market
# of
Sales
Market
Per Store
Earned
Share
Average
To Date
Independent Supermarkets
68
2.2%
$1,961,077
1.0%
$28,839
$7,324,385
1.4%
$107,712
$9,285,462
1.2%
$136,551
$603,555
Chain Convenience Stores
1160
38.0%
$90,065,537
44.4%
$77,643
$269,469,899
49.7%
$232,302
$359,535,436
48.3%
$309,944
$23,369,803
Independent Convenience
899
29.5%
$31,645,984
15.6%
$35,201
$100,543,794
18.5%
$111,840
$132,189,778
17.7%
$147,041
$8,592,336
Liquor Stores
98
3.2%
$1,307,274
0.6%
$13,340
$6,145,182
1.1%
$62,706
$7,452,456
1.0%
$76,045
$484,410
Drug Stores
4
0.1%
$110,986
0.1%
$27,747
$82,854
0.0%
$20,714
$193,840
0.0%
$48,460
$12,600
Auto/Gas Stations
147
4.8%
$4,251,139
2.1%
$28,919
$9,332,104
1.7%
$63,484
$13,583,243
1.8%
$92,403
$882,911
Truck Service Centers
41
1.3%
$2,273,244
1.1%
$55,445
$5,473,382
1.0%
$133,497
$7,746,626
1.0%
$188,942
$503,531
Bars/Restaurants
37
1.2%
$2,727,937
1.3%
$73,728
$2,743,970
0.5%
$74,161
$5,471,907
0.7%
$147,889
$355,674
Spec Non-Grocery
63
2.1%
$1,868,416
0.9%
$29,657
$3,515,008
0.6%
$55,794
$5,383,424
0.7%
$85,451
$349,923
Check Cashing Centers
3
0.1%
$11,467
0.0%
$3,822
$35,793
0.0%
$11,931
$47,260
0.0%
$15,753
$3,072
Bowling Centers
5
0.2%
$39,495
0.0%
$7,899
$166,242
0.0%
$33,248
$205,737
0.0%
$41,147
$13,373
Mass Merchandise
15
0.5%
$158,574
0.1%
$10,572
$762,156
0.1%
$50,810
$920,730
0.1%
$61,382
$59,847
In-House & Promotional
3
0.1%
$660,203
0.3%
$220,068
$1,247,083
0.2%
$415,694
$1,907,286
0.3%
$635,762
$123,974
$202,803,437
100%
$66,471
$542,030,289
100%
$177,657
$744,833,726
100%
$244,128
$48,414,192
Total
3051
100%
Summary Recap
Chain/Indpt Supermarkets
480
15.7%
$66,004,833
32.5%
$137,510
$136,762,566
25.2%
$284,922.01
$202,767,399
27.2%
$422,432
$13,179,881
Total Convenience Stores*
2,206
72.3%
$125,962,660
62.1%
$57,100
$379,345,797
70.0%
$171,960.92
$505,308,457
67.8%
$229,061
$32,845,050
365
12.0%
$10,835,944
5.3%
$29,688
$25,921,926
4.8%
$71,018.98
$36,757,870
4.9%
$100,706
$2,389,262
$202,803,437
100%
$66,471
$542,030,289
100%
$177,657
$744,833,726
100%
$244,128
$48,414,192
Other Classifications
Total All Classifications
3,051
100%
*Includes chain/independent convenience stores and stores whose business is primarily gas with convenience
Chart G
ARIZONA LOTTERY
BUSINESS CODE REVIEW
Fiscal Year 2015
Scratchers Sales
Draw Game Sales
5%
5%
Chain/Indpt
Supermarkets
25%
Chain/Indpt
Supermarkets
33%
Total Convenience
Stores*
62%
Total Convenience
Stores*
70%
5%
Chain/Indpt
Supermarkets
27%
Total Convenience
Stores*
68%
Chart H
ARIZONA LOTTERY
COUNTY SALES REVIEW
Fiscal Year 2015
Total Draw Games
Scratchers
% of
Accts
Accts
Apache
14
0.5%
$361,028
0.2%
$25,788
$1,105,216
0.2%
$78,944
$1,466,244
0.2%
$104,732
$0.39
Cochise
83
2.7%
$4,138,898
2.0%
$49,866
$14,709,236
2.7%
$177,220
$18,848,134
2.5%
$227,086
$2.76
Coconino
102
3.3%
$3,757,092
1.9%
$36,834
$10,186,582
1.9%
$99,868
$13,943,674
1.9%
$136,703
$1.99
Gila
42
1.4%
$1,630,612
0.8%
$38,824
$5,461,601
1.0%
$130,038
$7,092,213
1.0%
$168,862
$2.54
Graham
27
0.9%
$596,949
0.3%
$22,109
$4,120,363
0.8%
$152,606
$4,717,312
0.6%
$174,715
$2.44
Greenlee
10
0.3%
$251,680
0.1%
$25,168
$1,673,033
0.3%
$167,303
$1,924,713
0.3%
$192,471
$4.39
La Paz
35
1.1%
$1,102,027
0.5%
$31,486
$2,633,509
0.5%
$75,243
$3,735,536
0.5%
$106,730
$3.51
Maricopa
1697
55.6%
$125,320,714
61.8%
$73,848
$350,826,599
64.7%
$206,733
$476,147,313
63.9%
$280,582
$2.40
Mohave
151
4.9%
$14,438,313
7.1%
$95,618
$19,925,105
3.7%
$131,954
$34,363,418
4.6%
$227,572
$3.30
Sales
Per Store
Share
Average
Sales
Market
Per Store
Share
Average
Estimated
# of
County
Market
Sales
Market
Per Store
Per Capita
Share
Average
Wkly Sales
Navajo
50
1.6%
$1,987,050
1.0%
$39,741
$6,614,495
1.2%
$132,290
$8,601,545
1.2%
$172,031
$1.54
Pima
441
14.5%
$27,565,716
13.6%
$62,507
$66,253,765
12.2%
$150,235
$93,819,481
12.6%
$212,743
$1.84
Pinal
150
4.9%
$8,958,928
4.4%
$59,726
$26,939,763
5.0%
$179,598
$35,898,691
4.8%
$239,325
$1.84
Santa Cruz
24
0.8%
$1,677,877
0.8%
$69,912
$3,110,409
0.6%
$129,600
$4,788,286
0.6%
$199,512
$1.94
Yavapai
119
3.9%
$6,974,235
3.4%
$58,607
$16,042,773
3.0%
$134,813
$23,017,008
3.1%
$193,420
$2.10
Yuma
106
3.5%
$4,042,318
2.0%
$38,135
$12,427,840
2.3%
$117,244
$16,470,158
2.2%
$155,379
$1.62
Total
3051
100%
$202,803,437
$244,128
$2.24
2138
70.1%
$152,886,430
75.4%
$71,509
$417,080,364
76.9%
$195,080
$569,966,794
76.5%
$266,589
$2.28
913
29.9%
$49,917,007
24.6%
$54,674
$124,949,925
23.1%
$136,856
$174,866,932
23.5%
$191,530
$2.11
100%
$66,471
$542,030,289
100%
$177,657
$744,833,726
100%
Summary Recap
Maricopa and
Pima Counties
All Other
Counties
Chart I
ARIZONA LOTTERY
COUNTY SALES REVIEW
Fiscal Year 2015
Draw Game Sales
Scratchers Sales
All Other
23%
All Other
25%
Pima
13%
Pima
12%
Maricopa
62%
Maricopa
65%
All Other
23%
Pima
13%
Maricopa
64%
Chart J
New Business Item #1
Instant Scratch Game Profiles
August 21, 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:
Director’s Edition #1023, Super Crazy 8’s #1032, 2X the Money #1034, and Big Money
Game Book #1042.
Director’s Edition #1023. This $10 game, the first of its kind, is planned as an annual
Executive Director’s game. It will have over 75,000 prizes of $100 (the top prize).
Director’s Edition will be printed at a quantity of approximately 1.8 million tickets.
Super Crazy 8’s #1032. This $2 game has a top prize of $8,000 and will be printed at a
quantity of approximately 1.4 million tickets.
2X the Money #1034. This $2 game has a top prize of $10,000 and will be printed at a
quantity of approximately 1.4 million tickets.
Big Money Game Book #1042. Kicking off the Lottery’s 35th anniversary is the $20 Big
Money Game Book. It features six pages of game play and offers players the chance to
win up to $150,000. Players can enter their non-winning tickets into the 35th Anniversary
Second-Chance Drawing. This game will be printed at a quantity of approximately 1.4
million tickets.
Attachments (Commissioners only)
18
5 Card Cash™ Game Profile
August 21, 2015
_____________________________________________________________________
This report has been presented to the Commission to introduce a new draw game, 5
Card Cash™. The game is scheduled to go on sale October 4, 2015. This game offers
players the chance to win twice on the same ticket – instantly at the time of purchase or
in the nightly drawing.
Unlike other draw games, the play on this game is based on a deck of 52 cards. The
instant win portion is much like playing poker. If the card symbols on the player’s ticket
match a specified hand identified in the prize structure, they win a prize instantly ranging
from $2 to $5,000. That same ticket is also eligible to win up to $100,000 in the nightly
drawing. Drawings will be held six nights a week, Monday through Saturday.
The process to identify this new draw game was started more than two years ago and
included talking to our vendor and other industry experts, researching games from other
states, and conducting player research with Arizona players. Other states currently
offering a similar game include Kentucky, Wisconsin, Indiana, and Michigan.
The Commission is asked to approve this profile.
19
Draw Game Profiles
August 21, 2015
_____________________________________________________________________
This report has been presented to the Commission to modify the multiplier feature on
the Powerball game. The revisions to the game are scheduled to begin Sunday,
October 4, 2015.
The Commission is requested to approve this amended profile.
Game Profile - Powerball®
The Powerball game profile is being amended to make the following changes to the
game:
Game Matrix
Overall Odds
Match 4 + 1 Prize
Previous
5 of 59 + 1 of 35
1 in 31.8
$10,000
Revised
5 of 69 + 1 of 26
1 in 24.87
$50,000
Promotion Profile – Power Play®
The Power Play promotion profile for Powerball is being amended to add a 10X
multiplier feature. The new 10X feature will be available for all drawings in which the
annuitized jackpot amount is $150,000,000 or less.
The Commission is requested to approve this amended game and promotion profile.
Staff will be available to answer any questions.
20
Amended Promotion Profile #75
MONOPOLY MILLIONAIRES’ CLUB™ TV Game Show
_____________________________________________________________________
This report has been presented to the Commission to amend the second-chance draw
element of the new multi-state instant game, MONOPOLY MILLIONAIRES’ CLUB™ - a
syndicated TV Game Show.
The drawing dates and entry deadline dates have been extended to accommodate a
revised production taping schedule for the TV Game Show. Additional modifications
include adding language to address the waiver of prizewinner confidentiality as defined
under A.R.S. §5-573 (D) (“Confidentiality Right”) when a player chooses to accept the
game show trip.
The Commission is asked to approve this profile.
21
Instant Tab Games Profiles
August 21, 2015
________________________________________________________________________
This report has been provided to the Lottery Commission regarding game profiles
planned for Arizona Lottery Instant Tab games. The Commission is requested to
approve these game profiles. After Commission approval, staff will commence with
plans for printing and distribution of these games.
NEW GAME PROFILES
Attached for the Lottery Commission's action are new Instant Tab Game Profiles: Ice
Cold Pitcher #1001, Head’N for Home #1002, Hit The Bullseye #1003, Turn The Tables
#1004, Last Call #1005, Touchdown Drive #1006, I Like Big Bucks #1007, Right On
Cue #1008, Slot Crazy #1009, and Bragging Rights #1010.
Ice Cold Pitcher #1001. This 50¢ game has a top prize of $125 and will be printed at a
quantity of approximately 300,240 tickets.
Head’N for Home #1002. This 50¢ game has a top prize of $150 and will be printed at
a quantity of approximately 300,240 tickets.
Hit The Bullseye #1003. This 50¢ game has a top prize of $50 and will be printed at a
Turn The Tables #1004. This 50¢ game has a top prize of $120 and will be printed at a
Last Call #1005. This 50¢ game has a top prize of $150 and will be printed at a quantity
of approximately 300,240 tickets.
Touchdown Drive #1006. This $1.00 game has a top prize of $275 and will be printed
at a quantity of approximately 300,240 tickets.
I Like Big Bucks #1007. This $1.00 game has a top prize of $100 and will be printed at
Right On Cue #1008. This $1.00 game has a top prize of $250 and will be printed at a
Slot Crazy #1009. This $1.00 game has a top prize of $300 and will be printed at a
Bragging Rights #1010. This $1.00 game has a top prize of $200 and will be printed at
22
23
Award of Warehouse and Distribution Services for Pull Tabs (#ADSPO15-00005009)
Report to Lottery Commission
August 21, 2015
______________________________________________________________________
The purpose of this report is to provide information to the Lottery Commission regarding
the proposed contract award of the Lottery’s Warehouse and Distribution Services for
Pull Tabs (#ADSPO15-00005009).
The Chief Procurement Officer, Richard Crago, has reviewed the proposal in response
to the solicitation for Pull-Tab Ticket Warehouse and Distribution Services. The offer
was the only proposal submitted but has been determined to be the most advantageous
to the Lottery. A copy of his letter explaining the evaluation process and announcing
the award is attached.
The Lottery Commissions’ duty under A.R.S. § 5-559(C) is to review the award. Unless
it is rejected by the Lottery Commission at a meeting held within fourteen calendar days
after the award is communicated to the members of the commission, it will become
effective and binding.
This item will be discussed at the meeting.
Attachments (Commissioners Only)
24

8-21-15 AZ Lottery Commission Report

Transcription

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