Presentation to California State Lottery Commission September 28, 2017 Director’s Comments Presentation to California State Lottery Commission September 28, 2017 Director’s Report 6A

Overview General Business Update Agenda Consent Calendar YTD Sales Update Agenda Consent Calendar Scratchers® Core Game Profile Templates Agenda Action Items Vehicle Purchase – Fiscal Year 2017-18 Adoption of New Prize Payment Regulations Multi-Function Printer Maintenance Contract Gaming System Contract Amendment to Extend Term 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

Just 6 of 44 Jurisdictions Reported Sales Gains in FY 2016-17 CA

FY 2016 - 17 U.S. Lottery Industry Review CA Total Lottery Sales: 2nd Place ranking CA Instant Ticket Sales: 1st Place ranking CA MEGA Millions Sales: 1st Place ranking CA Powerball Sales: 1st Place ranking CA In-State Lotto Sales (SLP): 2nd Place ranking CA Hot Spot Sales: 6th Place ranking CA Total Lottery Sales Per Capita: $159

California’s Strong Sales Growth Over Past 5 Years has Moved it from #4 to #2 in Sales