Presentation to California State Lottery Commission March 22, 2018 Director’s Comments Presentation to California State Lottery Commission March 22, 2018 Director’s Report 6A

General Business Update Overview General Business Update YTD Sales Update Assembly Bill 2824 Powerball Update Good morning Commissioners and welcome back to Sacramento. For today’s director’s report, I will provide our year to date sales picture As well as a few general information items of interest After going over the voting item agenda, Jim Hasegawa will provide research information about who plays the lottery

Overview Agenda Action Items Six items related to the implementation of the Lottery’s Facility Master Plan Ratification of Office Depot Contract Amendment Amended Lottery Regulations – Background Checks and Conditional Contracts Public Website Redesign Contract Lottery Investment Strategy and Investment Policy Revised Fiscal Year 2017-18 Budget Good morning Commissioners and welcome back to Sacramento. For today’s director’s report, I will provide our year to date sales picture As well as a few general information items of interest After going over the voting item agenda, Jim Hasegawa will provide research information about who plays the lottery

Sales Update: YTD Sales Ahead of Goal and Last Year

Scratchers Sales Have Exceeded Weekly Goal in 30 of First 37 Weeks

CA Closing Sales Gap with NY CA Showed Largest Percentage Gain of Top Lotteries; Had 4th Largest Percentage Gain of all 44 Jurisdictions State CY 2016 Total Sales CY 2017 Total Sales % Change New York $7.83 billion (1st) $7.85 billion (1st) 0% California $6.40 billion (2nd) $6.64 billion (2nd) +4% Florida $6.20 billion (3rd) $6.37 billion (3rd) +3% Texas $5.13 billion (5th) $5.24 billion (4th) +2% Mass $5.25 billion (4th) $5.14 billion (5th) -2%

CA Continues to Lead in Instant Ticket Sales CA Had Largest Percentage Gain of Top Lotteries State CY 2016 Instant Sales CY 2017 Instant Sales % Change California $4.39 billion (1st) $4.87 billion (1st) +11% Florida $4.06 billion (2nd) $4.41 billion (2nd) +9% New York $3.93 billion (3rd) $4.18 billion (3rd) +6% Texas $3.79 billion (4th) $4.07 billion (4th) +7% Mass $3.62 billion (5th) $3.52 billion (5th) -3%

Other CY 2017 Industry Sales Rankings Sales in California are also ranked: #1 for Mega Millions among all U. S. lotteries #1 for Powerball #2 for In-State Lotto-type Games (SLP & Fantasy 5 combined in CA) #6 for Hot Spot