Presentation to California State Lottery Commission May 24, 2018 Director’s Comments Presentation to California State Lottery Commission May 24, 2018 Director’s Report 6A

General Business Update Draft Fiscal Year 2018-19 Budget Overview General Business Update YTD Sales Update Draft Fiscal Year 2018-19 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

Overview Agenda Action Items Shredding Services in Northern California Fiscal Year 2018-19 Vehicle Procurements Termination of Inland Empire District Office Lease Fiscal Year 2018-19 Business Plan 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

MM Game Change Boosted Sales by having more Jackpots over $300 Million

Scratchers Sales More than $400 Million Ahead of Last Year’s Pace $30 Games: More than 2X the sales volume due to a full year of availability compared to just 5 months last year $3, $5, $10, and $20 Games: Significant sales gains over LY Growth of Retail Network by more than 300 locations compared to a year ago