Paying Prizes on a Statewide Basis -The Florida Way Efficient, Effective & Secure September 2011 WELCOMETOMIAMI

2 Relevant Florida Facts 2 Florida has 14.6 Mill. individuals over the age of Persons per Square Mile 447 miles in length (north to south) 361 miles wide (east to west) Covers 54,252 land miles and is divided into 67 Counties

3 Mandate for Prize Payment System Must Support ALL Types of Prize Payments ! ■ Headquarters handles mailed in claims, prizes over $250,000 and all deferred payments. Payment types are limited to cash, checks, merchandise, EFT or ACH. ■ 9 District Offices handle walk-in claims to $250,000 and some Top Prize claims not requiring market quotes. Payment types include tickets, cash, merchandise, checks or wire transfer requests.

■ Enhanced automated auditing ■ Self service standard and analytical reporting ■ Consolidated role based security ■ Self service code table administration ■ Enhanced automatic calculations ■ Automatic escalation for exception claims ■ Comprehensive search engine ■ Consistent validation rules ■ Compliance with state electronic recordkeeping guidelines & federal info. security standards 4 (Patent Pending)

5 5 ■ Headquarters processed 31,724 payments, 60,174 claims and processed 40,678 non- winning tickets mailed in. ■ The 9 district offices processed 84,766 payments and 188,625 claims. ■ Statewide, Headquarters processed 27% of payments and 24% of claims. Florida Volume FY 10-11

6 Not Uncommon for Florida’s HQ Office All from one player – 1,500 tickets in one package.

How is our system more efficient? ■ State Owed Debt reviews (fully automated) ■ Auditable claim adjustments with segregation of duties ■ Tracking of claims in various stages of clearance ■ Automated checks of birthdates, ticket redemption periods and income tax withholding ■ Consolidated promotional prize payment process including second chance prizes on non-winning tickets 7

Situations we have now been able to streamline via Fortune ■ Expired ticket validations ■ State owed debt reviews for 5754s and annual deferred payments ■ Paying a claim in a district office after Headquarters or a Security review ■ Rolling multiple claims into one payment ■ Blocking payments of prizes for various reasons (tickets, players or information) ■ Identifying duplicate social security numbers ■ All tickets are scanned – virtually no manual entry ■ Deferred payment processing 8

Why do we consider our new system more effective? ■ District players owing state owed debt can be paid without Headquarters interaction; player dissatisfaction minimized since they are getting immediate resolution ■ Quicker payment time due to automation ■ Districts can handle many of the second chance promotional prizes rather than delays in mailing from Headquarters 9

Security is ALWAYS Paramount ■ Allows for defined and random audit of ticket stock ■ Claims are trackable when in non-payable status ■ Automated exception code assignments ■ Ability to block transactions types (restricted players, ownership concerns, etc.) ■ Ability to conceal unnecessary personal or private data from view only users. 10

Thank You HOPE YOU ENJOY MIAMI