1. Colorado Lottery Tracking Study Presentation May 2011 (W1) for Colorado Lottery by Simon Jaworski

2. 2 2 Colorado Lottery Tracking Study: Content PAGE B ACKGROUND, O BJECTIVES, M ETHODOLOGY, S AMPLE 3 – 6 K EY F INDINGS & R ECOMMENDATIONS 7 – 13 A D A WARENESS 14 – 19 S ECOND C HANCE D RAWINGS, S OCIAL M EDIA, W EBSITE & B ENEFITS 20 – 25 L OTTERY P LAYERSHIP 26 – 36 S CRATCH GAMES37 – 45 M ULTI -S TATE J ACKPOT G AMES – P OWERBALL & M EGA M ILLIONS 46 – 57 O THER D RAWING G AMES – L OTTO, C ASH 5, M ATCH P LAY 58 – 66 M ILLIONAIRE RAFFLE 67 – 69 K EY L OTTERY D YNAMICS : P LAYER T YPE, D AY P LAYED, L OTTERY OPINIONS, G AME S ATISFACTION RATINGS & DEMOGRAPHICS 70 – 77 A PPENDIX 78 – 90

3. 3 3 Background   TR i G is conducting a point-in-time tracking study for Colorado Lottery and Cactus Marketing Communications:  Wave 1: April 18- April 26  Wave 2: June 3- June 13 (anticipated)   TR i G has been conducting this study with the following focal points: 1. Data Continuity with historical Colorado Lottery tracking studies 2. Ensuring data collected online comports with previous RDD only studies 3. Managing sample to be reflective of overall Colorado population   This study collects a wide range of data regarding many different aspects of the following games:

4. 4 4 Objectives   There are two key goals for this Colorado Lottery Point-In-Time Tracking Study:  To give the Lottery and Cactus accurate and relevant information, to enable both parties to make sound business decisions based upon market trends.  To enable the Lottery to use the new Tracking Data in conjunction with the historical information captured over the previous Telephone Tracking Study, and to make both the study and the data a seamless integration into the lottery’s business plan, on a weekly, monthly and annual basis  Player Profiles  Based on their Gender, Age, Income, Education, Employment, Ethnicity, Language of preference for communications (e.g., Spanish) and Regionality.   Playership and Spending  Frequency of playership and the games they play  A composite profile of the “typical” Colorado Lottery player  To compare incidence findings of overall total playership, Frequent and Infrequent playership, and Non-playership (for all Lottery games) to previous waves of the Attitude & Usage study.  To uncover whether the rate of cross-playership has increased or decreased among Frequent (weekly and monthly) and Infrequent players; To determine spending patterns for players of each Lottery game To determine equity ratings for the various Lottery games and compare to previous waves

5. 5 5 Methodology   596 Colorado respondents participated in a 15 minute survey  450 completed online  146 completed by telephone interview   The respondents:  Must be older than 18 years of age  Must not have moral objections to Colorado running a state lottery  Must not work for an advertising agency, market research company, marketing consultant, any type of Lottery or a store that sells lottery tickets  Phone respondents must not have internet access   Questionnaire subject areas:  Demographics & Internet Usage  Participation in other gaming activities  Awareness of Colorado Lottery games, advertising and promotions  Playership of Colorado Lottery games: frequency of ticket buying, purchase motivations and barriers, influence of jackpot size, game equity  Impact of Mega Millions  Image perceptions of Colorado Lottery

6. 6 6 Sample Frame   N=596 completes  Gender breaksResearch Colorado Population –Female51%51% –Male49%49%  Age breaks (% of adult population) –18-2410%11% –25-3417%20% –35-4417%20% –45-5424%20% –55-6417%14% –65+15%15%  Race* –Caucasian81%84% –Asian3%3% –African American5%4% –Other15%10%  Ethnicity –Hispanic21%21% –Not Hispanic79%79% * Percentages total more than 100% as respondents were allowed to select more than one answer choice

7. 7 7 Key Findings

8. 8 8 Key Findings (1)   63% of Coloradoans recall viewing or hearing Colorado Lottery advertising within the past month, down from 69% last year (May ‘10).   Powerball advertising has produced the strongest past month unaided recall, at almost twice the level of the remaining games.   Scratch Games, Lotto and Mega Millions follow respectively with 10-12% unaided Ad awareness in the past month.   TV advertising was the most noted channel for creating Ad awareness for the Colorado Lottery, with Billboards and Point of Sale being the second and third most prominent forms, respectively.   Almost half of all Coloradoans are aware of the Colorado Lottery Second Chance Drawing.   Almost ¾ of Coloradoans utilize social media, with 56% being Facebook users.   Social Media users skew younger, and could be a perfect tool to help increase Lottery trial among the 18-34 age groups.   There is a 5:1 ratio of Positive to Negative feelings about the Colorado Lottery!

9. 9 9 Key Findings (2)  One in three respondents has been on the CO Lottery website in the past month, although more than half of all respondents have never visited the website.  More than 50% of the past month Colorado Lottery website visitors have noticed the website redesign. The Colorado Lottery website has a Top 3 Box % score of 57% in terms of the website’s ‘excellence’.  37% of respondents believe that the Lottery provides a source of funding for maintenance of parks and recreation areas and other outdoor projects.  There does appear to be an opportunity to further educate Coloradoans about where the Lottery money proceeds are spent.  78% of respondents have played CO Lottery games ever, with Scratch Games and Powerball having the highest playership. Past Year playership is at 68%, down 1% from the same time period from 2010.  54% of Coloradoans have played at least one Lottery game in the past month.  Only 1/3 of the Colorado population have ever played Mega Millions!

10. 10 Key Findings (3)  Two out of three total respondents indicated a likelihood to purchase lottery games in the future. Only 17% stated they would be unlikely to purchase.  50%+ of all players purchase tickets at convenience stores regularly, while more than one in three regularly buys their Lottery tickets at grocery stores.  Almost half of Past Year Lottery players have experienced at least one issue at a retail store while trying to purchase a Lottery game. These issues are driven by out-of-stock Scratch Games, unknowledgeable staff or Game terminals/Scratch dispensers not working.  Players’ key motivations to play Lottery, are the chance to win money (82%) and the entertainment value of the games (57%).  More than 90% of Scratch Game players have played a $1 Scratch Game in the past year, although $5 tickets are purchased at higher frequencies on monthly and annual bases than $3 tickets. 6 out of 10 of players spent less than $5 the last time they played Scratch Games.  Players who are spending less on Scratch Games in the past 3 months, say this decision is being driven primarily by having less money available to spend.  47% agree the price of gas has directly lowered their spend on the Colorado Lottery!

11. 11 Key Findings (4)  The Size of jackpot is the No.1 influence for Powerball ticket purchase, followed by players ‘having spare money’ and ‘feeling lucky’.  However, the more frequent the player, the less motivated they are by increasing jackpot sizes. Only 43% of Powerball players claim to increase spend as the jackpot increases.  28% of Mega Millions players spend more than $10 in a typical month (slightly lower than Powerball at 33%). 72% of Mega Millions players spent $5 or less the last time they played (very similar to Powerball).  Powerball and Mega Millions players are in essence very similar, with the notable exception that the % penetration rate of Mega Millions is half that of Powerball.  The average (mean) weekly ‘new money’ spent among all Mega Millions players is $9 (although the median ‘new money’ spend is less than $2.)  70% of Mega Millions players are spending $5 or less in terms of ‘new money’.  Over half of all respondents who play Powerball and Mega Millions spend the same on both games regardless of the size of each game’s jackpot!

12. 12 Key Findings (5)  There is a 50-50 split between those that play the same Colorado Lottery games each week and those that change the Lottery games they play.  57% of Past Year Players spend the same amount on Lottery every week, regardless of the games played.  Only 12% of those who play Powerball and Mega Millions, will increase Mega Millions spend if the jackpot is high, while maintaining Powerball spend.  One third of Powerball players either are not aware of/familiar with Mega Millions or have not thought about playing the game.  Mean spend for MatchPlay is very similar to both Powerball and Mega Millions, so the opportunity again appears to increase the trial levels of MatchPlay.  15% of respondents who have played CO Lottery games have purchased a Millionaire Raffle ticket. Of these players, 60% only bought 1 Raffle Ticket last time around.  40% of CO lottery players express an intent to purchase Bonus Millionaire Raffle tickets in the near future!

13. 13 Recommendations 1. 1.Game Awareness, Ad Awareness and understanding of Mega Millions should be the #1 priority for the Colorado Lottery moving forward, as there is a great opportunity to increase player penetration. Once Lottery players actually play Mega Millions, the spend peripherals and patterns are similar to Powerball. 2. 2.Looking at days where Players claim to play, the largest opportunity to increase Lottery purchases is Tuesday. Weekends and Wednesdays are already strong (as with most historical Powerball states). This can go hand in hand with Mega Millions. 3. 3.There is a strong opportunity to increase Raffle playership in Colorado, with the last Raffle game only purchased by 15% of the population. 40% of CO lottery players express an intent to purchase Bonus Millionaire Raffle tickets in the near future, so an extra 25% of Lottery players claim they will Probably or Definitely play the Bonus Millionaire Raffle, compared to the last Raffle. 4. 4.There appears to be a strong case for an increased use of Social Media in Lottery communications, specifically to ensure enough of the youngest age group, 18-34 year olds, are aware of Colorado Lottery games, promotions and jackpot sizes. 5. 5.There does appear to be an opportunity in further educating Coloradoans about where the Lottery money proceeds are spent.

14. 14 Ad Awareness

15. 15 Past Month CO Lottery Ad Awareness   63% of respondents recall viewing or hearing Colorado Lottery advertising within the past month.   This is down from 2010’s equivalent wave of 69%. Q1.In the past month have you seen or heard any advertising for Colorado Lottery games? (n=596)

16. 16 Games Advertised Past Month – Unaided Ad Awareness Total Market   Powerball advertising has produced the strongest past month unaided recall, at almost twice the level of the remaining games.   Scratch Games, Lotto and Mega Millions follow respectively with 10-12% unaided Ad awareness in the past month. Q2.Please list which Colorado Lottery games you have seen advertised in the past month? Powerball Scratch games/Scratch tickets/Scratch Off Lotto Mega Millions Crossword/Crossword Scratch/Puzzle Colorado Lottery/Lottery CASH 5 Millionaire Raffle/Raffle MatchPlay Bingo (n=596)

17. 17 Games Advertised Past Month – Aided Ad Awareness Total Market   Almost half of all respondents stated that they had seen or heard ads for Powerball and Scratch Games in the past month.   Mega Millions and Lotto had the next highest aided Ad awareness at 35%. Q3.Which of the Colorado Lottery games have you seen or heard advertising for in the past month? Powerball Scratch Games Mega Millions Lotto Cash 5 MatchPlay Raffle tickets (n=596)

18. 18 Games Advertised Past Month – Total Ad Awareness Total Market   The strongest performing games in Past Month Ad awareness are Powerball and Scratch Games. Q2.Please list which Colorado Lottery games you have seen advertised in the past month? Q3.Which of the Colorado Lottery games have you seen or heard advertising for in the past month? Powerball Scratch Games Lotto Mega Millions Cash 5 MatchPlay Raffle tickets Crossword/Crossword Scratch/Puzzle Colorado Lottery/Lottery (n=596)

19. 19 Source of Advertising Awareness Past Month   TV advertising was the most noted channel for creating Ad awareness for the Colorado Lottery.   Billboards and Point of Sale messaging follow as leading drivers of awareness. Q4.Where did you see or hear the advertising for the games below, in the past month?

20. 20 Colorado Lottery Second Chance Drawings, Social Media, Website & Lottery Benefits

21. 21 Second Chance Drawing   Almost half of respondents are aware of the Second Chance Drawing and a similar number indicated they were likely to participate.   There is a big opportunity to drive second chance drawings in Colorado. Q5.Are you aware of the Second Chance Drawing that the Colorado Lottery runs, which allows players to submit their losing Scratch tickets for an opportunity to still win prizes from a separate drawing? Q6. Are you likely to participate in a Colorado Lottery Second Chance Drawing? (n=596) Awareness of Second Chance Drawing Likely to Participate in Second Chance Drawing

22. 22 Social Media Websites Used   Almost ¾ of respondents utilize social media   56% are Facebook users.   Social Media users skew younger. Q7.Which of the following Social Media websites do you actively use (or visit frequently)? Facebook Yahoo YouTube MSN My Space Twitter LinkedIn Google-Talk Do not follow / visit Social Media websites (n=596)

23. 23 Colorado Lottery Website   One in three respondents has been on the CO Lottery website in the past month.   More than half of all respondents have never visited the website.   Over half of the past month website visitors noticed the website redesign. (n=192)*(n=596) Last Visited Website Noticed Website Changed (Website visitors – Past month) *Base=Respondents who have visited the CO website in the past month Q8.Which of the following best describes when you last visited the Colorado Lottery website? Q9.Did you notice that the Colorado Lottery website has changed recently?

24. 24 Rating of Colorado Lottery Website Design   The website redesign was widely viewed as an improvement with 57% of respondents who have seen it giving it a rating of 8 or higher on a scale of 1 to 10. (n=276)* *Base=Respondents who have visited the CO website Q10.On a scale of 1 to 10, where 10 is an excellent website that offers you everything you need to know about the Colorado Lottery and its games, and is easy to use, and 1 is a poorly designed website that is difficult to use, how would you rate the Colorado Lottery website? Mean Rating:7.6 Top 3 Box:57%

25. 25 Main Benefits of CO Lottery for the Residents of CO   37% of respondents believe that the Lottery provides a source of funding for maintenance of parks and recreation areas and other outdoor projects.   There does appear to be an opportunity in further educating Coloradoans about where the Lottery money proceeds are spent. Q11.When you think about the Colorado Lottery, what are the main benefits for the residents of Colorado that come to mind? (n=596) Funding for/ maintenance of parks & recreation, open space, outdoor projects Money/Chance to win money/ get rich/Win money to help finances Money goes toward education/ schools Money for state/Colorado/ state projects/ government OtherDon't know

26. 26 Lottery Playership

27. 27 CO Lottery Games - Playership Total Market Q13.Have you ever played any of [these] Colorado Lottery games? Q14. Which Colorado Lottery games have you ever played? (n=596) Games Played EverEver Played CO Lottery Games Scratch Games Powerball Lotto Mega Millions Cash 5 MatchPlay Raffle tickets None (n=596)   78% of respondents have played CO Lottery games ever.   Scratch Games and Powerball have the highest playership.   Only 1/3 of the population have played Mega Millions.

28. 28 CO Lottery Games - Playership Among Ever Played Colorado Lottery   Of the respondents have player CO Lottery games, three out of four have played Scratch Games and/or Powerball.   There remains a big opportunity to increase trial in Mega Millions. *Base=Respondents who have ever played CO lottery games Q13.Have you ever played any of [these] Colorado Lottery games? Q14. Which Colorado Lottery games have you ever played? (n=596) Games Played EverEver Played CO Lottery Games Scratch Games Powerball Lotto Mega Millions Cash 5 MatchPlay Raffle tickets None (n=462)*

29. 29 Games Played In … TOTAL MARKET   68% of total respondents have played CO Lottery in the past year.   54% had played at least one game in the past month. Q15.IN THE PAST YEAR, which of these Colorado Lottery games have you played? Q16.AND IN THE PAST MONTH, which of these Colorado Lottery games have you played? Q17.AND IN THE PAST WEEK, which of these Colorado Lottery games have you played? (n=596) Total Lottery Playership Scratch Games Powerball Lotto Mega Millions Cash 5 MatchPlay Raffle tickets None … Past Year… Past Month… Past Week (n=596) (69% May ’10)

30. 30 Games Played In … Among Players within each time period   Powerball has seen strong playership within the past month, in all likelihood helped by large Powerball jackpots in March & April.   Lotto still ranks as the 2 nd most played Colorado Drawing game. *Base=Respondents who have played CO lottery games ever /past year/month Q15.IN THE PAST YEAR, which of these Colorado Lottery games have you played? Q16.AND IN THE PAST MONTH, which of these Colorado Lottery games have you played? Q17.AND IN THE PAST WEEK, which of these Colorado Lottery games have you played? (n=460)* Scratch Games Powerball Lotto Mega Millions Cash 5 MatchPlay Raffle tickets None … Past Year… Past Month… Past Week (n=409)*(n=317)*

31. 31 Outlets Where CO Lottery Tickets Purchased Regularly TOTAL MARKET   More than half of all respondents purchase tickets at convenience stores regularly   More than one in three regularly buy at grocery stores. Q18.From which of the following outlets do you regularly purchase your Colorado Lottery tickets? Convenience Stores Grocery Liquor Stores Restaurant/Bar Other Outlets (n=596)

32. 32 Issues Faced at Lottery Retail Stores   Almost half of Past Year Lottery players have experienced an issue at a retail store.   These issues are driven by out-of-stock Scratch Games, unknowledgeable staff or Game terminals/dispensers not working. *Base=Respondents who have played CO lottery games in the past year Q19.Which, if any, of the following issues have you faced at Lottery Retail stores over the past year? Scratch Games you wanted to play were unavailable Store clerks/employee had little knowledge about games Drawing Game terminals were not working Scratch Game tickets in the dispensers were not visible Lottery Game instructions were unclear Incorrect numbers were displayed at location Other None of the above (n=409)*

33. 33 Reasons for Not Playing CO Lottery in the Past Year   Issues relating to lack of money available, poor odds and prioritizing other spending over lottery are the most common reasons for not playing *Base=Respondents who have not played CO lottery in the past year Q20.Why have you not played the lottery in the past year?

34. 34 Reasons for Never Playing CO Lottery   Issues relating to pessimistic views about winning and poor odds are the most common reasons for non-players never having played the CO Lottery *Base=Respondents who have never played CO lottery Q21.Why have you never played the lottery?

35. 35 Key Reasons Why Play Lottery   Of those who have played a CO Lottery game within the past year, the most common motivations to play were the chance to win money and the entertainment value of the games.   A ‘chance to fulfill my dreams’ was stated by almost half of past year players. *Base=Respondents who have played lottery in past year Q22.Which of the following are key reasons why you play the Lottery?

36. 36 Likelihood to Purchase CO Games in the Future   Two out of three total respondents indicated a likelihood to purchase lottery games in the future.   Only 17% stated they would be unlikely to purchase. (n=596) 5-point scale where ‘5’ means Definitely Purchase and ‘1’ means Definitely Not Purchase Q23.How likely are you to purchase Colorado Lottery games in the future? Mean Rating:3.9 Top 2 Box:67%

37. 37 Scratch Games

38. 38 How Often Play Scratch Games   67% of scratch players have played within the past month. *Base=Respondents who have played Scratch games in the past year Q24. How often do you play Scratch games? Would you say you play? (n=287)*

39. 39 How Often Purchase Scratch Game Tickets   91% of respondents have played $1 Scratch Games in the past year   $5 tickets are purchased at higher frequencies on monthly and annual bases than $3 tickets (n=287)* *Base=Respondents who have played Scratch games in the past year Q25.Which of the following best describes how often you purchase each of the following prices of Scratch Game tickets?

40. 40 Amount Spent on Scratch Games…   6 out of 10 of players spent less than $5 the last time they played Scratch Games.   4 out of 10 players spend more than $10 in a typical month. (n=287)* …Last Time Played…in Typical Month *Base=Respondents who have played Scratch games in the past year Q26.How much did you spend the last time you played Scratch games? Q27.Approximately how much do you spend on Scratch Games in a typical month? Mean Spend:$10 Mean Spend:$21

41. 41 Spending More or Less on Scratch Games   The greater the frequency of playership, the more likely the player will perceive their spending on Scratch Games as increasing. (n=287)* Note: Letters indicate a significant difference across player groups at the 95% confidence level *Base=Respondents who have played Scratch games in the past year Q28.Would you say you are spending more, less, or about the same on Scratch games, as you were a year ago? (B) (n=87)* (C) (n=106)* (D) (n=90)* CD B

42. 42 Why Spending Less on Scratch Games   Having less money available to spend is the key driver behind decisions to spend less on Scratch Games (n=97)* Note: Letters indicate a significant difference across player groups at the 95% confidence level ^Caution: Small base size *Base=Respondents who are spending less on Scratch Games Q29.Why are you spending less on Scratch games? Is it because…? (B) (n=20)*^ (C) (n=38)* (D) (n=36)* Have less money to spend Felt didn’t win enough Spending less on principle Less interested in lottery games Don’t enjoy it anymore Other None TotalPast WeekPast MonthPast Year B B C

43. 43 Importance When Deciding to Buy Scratch Games   Having spare money is the key driver in decisions to purchase Scratch Games, followed by seeing the scratch tickets and also feeling lucky. (n=287)* Note: Letters indicate a significant difference across player groups at the 95% confidence level *Base=Respondents who have played Scratch games in the past year Q30.Please think about the last time you bought Scratch games. Below is a list of reasons that may or may not have been important to you in deciding to buy these Scratch games. Please check whether each reason was important or not important in deciding to buy the Scratch games. (B) (n=87)* (C) (n=106)* (D) (n=90)* I had spare money I saw the scratch tickets I felt lucky I saw a lottery sign I remembered the advertising The sales clerk mentioned it TotalPast WeekPast MonthPast Year CDD D DD

44. 44 Importance When Deciding Which Scratch Games to Buy   Ticket prices, the numbers of chances to win and bonus features are the most important factors in Scratch Game selection (n=287)* Note: Letters indicate a significant difference across player groups at the 95% confidence level *Base=Respondents who have played Scratch games in the past year Q31. Below is a list of reasons that may be important when you’re deciding WHICH Scratch ticket to buy. Please indicate whether any of the following reasons are important to you in choosing which Scratch games to play. (B) (n=87)* (C) (n=106)* (D) (n=90)* Price of the ticket Number of chances to win Having a bonus feature Odds of winning Top prize Game you've won on before Having many win-able small prizes Way it is played Being new game Graphics/general look of ticket TotalPast WeekPast MonthPast Year D D DD D CD

45. 45 Prize Amount that is a Winning Experience for Scratch Games   $70 is the average prize amount considered a “winning experience” across all Scratch Game players   For players in the past year, the average “winning experience” was $90 *Base=Respondents who have played Scratch games in the past year Q32.When you play Scratch games, what prize amount do you have to win before you feel like you have had a winning experience? (n=287) (B) (n=87) (C) (n=106) (D) (n=90) $ Prize Amount that is a ‘Winning Experience

46. 46 Multi-State Games Powerball

47. 47 How Often Play Powerball   Two-Thirds of Past Year Powerball players have played within the Past Month. (n=279)* *Base=Respondents who have played Powerball in the past year Q33. How often do you play Powerball? Would you say you play?

48. 48 Amount Spent on Powerball…   1/3 of all Powerball players typically spend more than $10 in a month.   Almost three quarters of players spent $5 or less the last time they played. (n=279)* …Last Time Played…in Typical Month Mean Spend:$8 Mean Spend:$15 *Base=Respondents who have played Powerball in the past year Q34.How much did you spend the last time you played Powerball? Q35.Approximately how much do you spend on Powerball in a typical month?

49. 49 Importance When Deciding to Buy Powerball   Size of jackpot is the key influencer of decisions to purchase Powerball tickets, but it is closely followed by players ‘having spare money’ and ‘feeling lucky’. (n=279)* Note: Letters indicate a significant difference across player groups at the 95% confidence level *Base=Respondents who have played Powerball in the past year Q36.Please think about the last time you bought Powerball. Which, if any, of the following reasons was important or not important in deciding to buy Powerball? (B) (n=97)* (C) (n=87)* (D) (n=92)* The Jackpot was high I had spare money I felt lucky I saw the Powerball tickets I saw a lottery sign I remembered the advertising The sales clerk mentioned it TotalPast WeekPast MonthPast Year C D

50. 50 At What Jackpot Amount Do You Begin Playing Powerball   More frequent players are less motivated by increasing jackpot sizes  Weekly players are more motivated to play in $20-30 million jackpots  About a quarter of Powerball players who have not played in the Past month wait until the Powerball jackpot hits $100m. (n=279)* Note: Letters indicate a significant difference across player groups at the 95% confidence level *Base=Respondents who have played Powerball in the past year Q37.At what jackpot amount do you begin playing Powerball? (B) (n=97)* (C) (n=87)* (D) (n=92)* Size of Jackpot doesn’t matter CD BC D D Mean Spend: 63.839.360.490.1 BBC

51. 51 Jackpot Amount Spent   43% of players will spend more as jackpot size increases   23% of players who spend more when the jackpot size grows increase their spend when the jackpot hits $100 million *Base=Respondents who have played Powerball in the past year ** Base=Respondents who spend more on Powerball tickets as the jackpot grows Q38. Do you typically spend more on Powerball tickets as the jackpot grows? Q39. At what jackpot amount do you start to spend more on Powerball? (n=279)* (n=119)** At what jackpot amount do you start to spend more on Powerball? Do you typically spend more on Powerball tickets as the jackpot grows? 20-30 Million 31-50 Million 51-99 Million 100-149 Million 150+ Million Size of Jackpot does not matter Don't know Mean Rating: Total = 99.2

52. 52 Mega Millions

53. 53 How Often Play Mega Millions   62% of Mega Millions players have played in the past month (only slightly behind Powerball’s 66%). *Base=Respondents who have played Mega Millions in the past year Q46. How often do you play Mega Millions? Would you say you play? (n=169)*

54. 54 Amount Spent on Mega Millions…   28% of players spend more than $10 in a typical month (slightly lower than Powerball at 33%).   72% spent $5 or less the last time they played (very similar to Powerball). …Last Time Played…in Typical Month (n=169)* Mean Spend:$7 Mean Spend:$15 *Base=Respondents who have played Mega Millions in the past year Q47.How much did you spend the last time you played Mega Millions? Q48.Approximately how much do you spend on Mega Millions in a typical month?

55. 55 Mega Millions New Money Spent   The average weekly “new money” spent among all Mega Millions players is $9.   70% of Mega Millions players are spending $5 or less in new money. (n=169)* *Base=Respondents who have played Mega Millions in the past year Q49.Of the money you spend on MEGA MILLIONS, about how much in a given week is "new money", that is, money you were not spending on the lottery prior to MEGA MILLIONS being offered in Colorado? (B) (n=46)* (C) (n=59)* (D) (n=58)* B Mean Spend : $9$19$7$2 CD BC D CD D

56. 56 Powerball and Mega Millions   12% of those who play Powerball and Mega Millions will increase Mega Millions spend if jackpot is high, while maintaining Powerball spend.   Over half of all respondents who play Powerball and Mega Millions spend the same on both games regardless of the size of each game’s jackpot. (n=152)* *Base=Respondents who have played Powerball and Mega Millions in the past year Q50.When the Powerball jackpot is low, and Mega Millions jackpot is high, do you…?

57. 57 Reason for Not Buying Mega Millions Ticket   33% of Powerball players either are not aware of/familiar with Mega Millions or have not thought about playing the game.   Awareness and understanding of Mega Millions should be a #1 priority for the Colorado Lottery moving forward as there is a great opportunity to increase player penetration and trial. *Base=Respondents who have played Powerball and not played Mega Millions in the past year Q51.In the PAST YEAR, you said you have played Colorado Lottery’s Powerball game, but not the Mega Millions game. Both games are very similar, being National Jackpot drawing games, so what is the main reason you have not bought a Mega Millions ticket?

58. 58 Lotto

59. 59 How Often Play Lotto   68% of Past year Lotto players have played within the past month *Base=Respondents who have played LOTTO in the past year Q43. How often do you play LOTTO? Would you say you play? (n=221)*

60. 60 Amount Spent on LOTTO…   36% of LOTTO players spend more than $10 on the game in a typical month   73% of players spent $5 or less the last time they played *Base=Respondents who have played LOTTO in the past year Q44.How much did you spend the last time you played LOTTO tickets? Q45.Approximately how much do you spend on LOTTO in a typical month? Mean Spend:$9 Mean Spend:$17 …Last Time Played…in Typical Month (n=169)*

61. 61 Cash 5

62. 62 How Often Play Cash 5   69% of Past Year Cash 5 players have played the game within the past month. (Strongest loyalty of all Drawing games). *Base=Respondents who have played CASH 5 in the past year Q40. How often do you play CASH 5? Would you say you play? (n=104)*

63. 63 Amount Spent on Cash 5…   38% of Cash 5 players spend more than $10 on the game in a typical month   76% spent $5 or less the last time they played (n=104)* …Last Time Played…in Typical Month Mean Spend:$6 Mean Spend:$18 *Base=Respondents who have played CASH 5 in the past year Q41.How much did you spend the last time you played CASH 5 tickets? Q42.Approximately how much do you spend on CASH 5 in a typical month?

64. 64 MatchPlay

65. 65 How Often Play MatchPlay   68% of MatchPlay players have played the game in the past month (similar strong loyalty to Cash 5). *Base=Respondents who have played MatchPlay in the past year Q52. How often do you play MatchPlay? Would you say you play? (n=51)*

66. 66 Amount Spent on MatchPlay…   One third of MatchPlay players spend more than $10 on the game in a typical month.   Mean spend is very similar to both Powerball and Mega Millions, so the opportunity again appears to increase the trial levels of MatchPlay. (n=51)* *Base=Respondents who have played MatchPlay in the past year Q53.How much did you spend the last time you played MatchPlay? Q54.Approximately how much do you spend on MatchPlay in a typical month? Mean Spend:$8 Mean Spend:$15 …Last Time Played…in Typical Month

67. 67 Millionaire Raffle

68. 68 Colorado Lottery 2010 Millionaire Raffle   15% of respondents who have played CO Lottery games have purchased a Millionaire Raffle ticket.   There is a strong opportunity to increase Raffle playership in Colorado. *Base=Respondents who have ever played CO lottery games **Base=Respondents who purchased a Millionaire Raffle Q55. Did you buy a ticket for the Colorado Lottery 2010 Millionaire Raffle, which was drawn on January 1st 2011, and made two new millionaires in Colorado? Q56.How much did you spend the last time you bought Millionaire Raffle tickets? (n=462)* Amount Spent Last Time on Millionaire Raffle Ticket Purchased a Ticket for CO Lottery Millionaire Raffle $20 $21+ (n=68)**

69. 69 Likelihood to Purchase Bonus Millionaire Raffle   40% of CO lottery players express an intent to purchase Bonus Millionaire Raffle tickets in the near future.   So an extra 25% of Lottery players claim they will Probably or Definitely play the Bonus Millionaire Raffle, compared to the last Raffle. (n=462)* *Base=Respondents who have ever played CO lottery games Q57.How likely are you to purchase a Bonus Millionaire Raffle game from the Colorado Lottery between April and July 2011? Mean Rating:3.3 Top 2 Box:40%

70. 70 Key Lottery Dynamics

71. 71 Type of Player   There is a 50-50 split between those that play the same games each week and those that change the games they play.   57% spend the same amount on Lottery every week, regardless of the games played. (n=409)* *Base=Respondents who have played games in the past year Q60.Which of the following statements best describes the type of Lottery player you are? Different Spend (net):43% Same Spend (net):57% Same Games (net):50% Different Games (net):50%

72. 72 Days of the Week Typically Buy Lottery Tickets   Friday and Saturday are the most popular days to buy CO Lottery tickets.   There appears to be a strong opportunity to increase play on Tuesday’s to levels similar to Wednesday’s. *Base=Respondents who have played games in the past year Q61.On which days of the week do you typically buy Lottery tickets? Monday Tuesday Wednesday Thursday Friday Saturday Sunday (n=409)*

73. 73 Current Feelings Towards Colorado Lottery   There is a 5:1 ratio of Positive to Negative feelings about the Colorado Lottery.   55% of all respondents have positive feelings toward the CO Lottery.   Only 11% of the population have negative feelings towards the Lottery. (n=596) Q58.How would you say your current feelings are towards the Colorado Lottery? Mean Rating:3.6 Top 2 Box:55%

74. 74 Games Satisfaction Top 2 Box % (5 point scale – 5 = Extremely Satisfied, 1 = Not At All Satisfied)   The Raffle game is certainly the game with the highest overall satisfaction, with Scratch Games a clear #2.   Lotto has the lowest satisfaction of any Colorado Lottery game. Raffle Tickets Scratch Games Mega Millions Cash 5 MatchPlay Powerball Lotto (n=596) Note: Letters indicate a significant difference across player groups at the 95% confidence level *Base=Respondents who have played Powerball in the past year Q59a.For the following games that you have played in the past year, how satisfied are you with each game you have played? Please use a scale from 1 to 5 where 5 is Extremely satisfied and 1 is Not at all satisfied.

75. 75 Lottery Statements – Agree – Top 2 Box %   47% agree the price of gas has directly lowered their spend on the Colorado Lottery!   59% of respondents believe they will not increase their lottery spending. Q63.On a 1 to 5 scale, where 5 is Strongly Agree and 1 is Strongly Disagree, please rate how much you agree or disagree with each of the following Lottery statements… It is unlikely that I will increase my spend on the Lottery in the future. The Lottery has been an overall benefit to the state of Colorado. The Colorado Lottery has been run honestly. The price of gas has directly lowered my spend on the Colorado Lottery. The state of the economy has had a direct effect on my Lottery spending habits. The lottery is an inexpensive form of entertainment. I am more likely to play lottery games when I've heard about a local winner. The chances of winning a prize in the Colorado Lottery are good. (n=596) Top 2 Box Scores 5 = Strongly Agree, 4 = Somewhat Agree 1-5 scale

76. 76 Awareness of Campaigns   63% of respondents are not aware of the “Play Responsibly” campaign   Three fourths of respondents are unaware of the “Problem Gambling” campaign Q62.Just within the last month or so, do you remember seeing any images or hearing any of the …? (n=596) Aware of Colorado Lottery's “Play Responsibly” Campaign (n=596) Aware of Colorado Lottery's “Problem Gambling” Campaign

77. 77 Demographics D1.Which of the following best describes your total annual household income for the year 2010 before taxes? D2. What is the highest level of education that you have completed? D3.Are you currently…..?

78. 78 Appendix

79. 79 Outlets Where CO Lottery Tickets Purchased Regularly Among Played Colorado Lottery in Past Year   Three out of four players who have been active within the last year purchase tickets at convenience stores regularly   Over half regularly buy at grocery stores *Base=Respondents who have played CO lottery games in the past year Q18.From which of the following outlets do you regularly purchase your Colorado Lottery tickets? Convenience Stores Grocery Liquor Stores Restaurant/Bar Other Outlets (n=409)*

80. 80 Games Advertised Past Month – Unaided Ad Awareness Aware of Colorado Lottery Adverts   One in three respondents who have seen or heard CO Lottery advertising in the past month recall Powerball ads.   Half that amount (16%) recall Mega Millions Advertising. *Base=Respondents who have seen or heard advertising in the past month Q2.Please list which Colorado Lottery games you have seen advertised in the past month? Powerball Scratch games/Scratch tickets/Scratch Off Lotto Mega Millions Crossword/Crossword Scratch/Puzzle Colorado Lottery/Lottery CASH 5 Millionaire Raffle/Raffle MatchPlay Bingo (n=376)*

81. 81 Games Advertised Past Month – Aided Ad Awareness Aware of Colorado Lottery Adverts   When aided, three out of four respondents who were exposed to CO Lottery advertising stated they had seen Powerball and Scratch Games *Base=Respondents who have seen or heard advertising in the past month Q3.Which of the Colorado Lottery games have you seen or heard advertising for in the past month? Powerball Scratch Games Mega Millions Lotto Cash 5 MatchPlay Raffle tickets (n=376)*

82. 82 Games Advertised Past Month – Total Ad Awareness Aware of Colorado Lottery Adverts   Overall, Powerball and Scratch Games advertising have resulted in the most total awareness among those who had seen ads *Base=Respondents who have seen or heard advertising in the past month Q2.Please list which Colorado Lottery games you have seen advertised in the past month? Q3.Which of the Colorado Lottery games have you seen or heard advertising for in the past month? Powerball Scratch Games Lotto Mega Millions Cash 5 MatchPlay Raffle tickets Crossword/Crossword Scratch/Puzzle Colorado Lottery/Lottery (n=376)*

83. 83 Satisfaction with Powerball   Frequent Powerball players have higher satisfaction with the game than less frequent players (n=279)* Note: Letters indicate a significant difference across player groups at the 95% confidence level *Base=Respondents who have played Powerball in the past year Q59a.For the following games that you have played in the past year, how satisfied are you with each game you have played? Please use a scale from 1 to 5 where 5 is Extremely satisfied and 1 is Not at all satisfied. (B) (n=97)* (C) (n=87)* (D) (n=92)* Mean Rating: 3.23.63.22.9 CD Top 2 Box: 40%53%38%29% CD B

84. 84 Satisfaction with Mega Millions   Similar to Powerball, the more frequent Mega Millions players rate their satisfaction with the game higher than less frequent players (n=169)* Note: Letters indicate a significant difference across player groups at the 95% confidence level *Base=Respondents who have played Mega Millions in the past year Q59b.For the following games that you have played in the past year, how satisfied are you with each game you have played? Please use a scale from 1 to 5 where 5 is Extremely satisfied and 1 is Not at all satisfied. (B) (n=46)* (C) (n=59)* (D) (n=58)* Mean Rating: 3.33.73.52.7 D Top 2 Box: 42%63%51%19% D D D D CD B BC

85. 85 Satisfaction with Powerball/Mega Millions   Powerball and Mega Millions have similar satisfaction ratings (n=279)* Note: Letters indicate a significant difference across player groups at the 95% confidence level *Base=Respondents who have played Powerball/Mega Millions in the past year Q59a/b.For the following games that you have played in the past year, how satisfied are you with each game you have played? Please use a scale from 1 to 5 where 5 is Extremely satisfied and 1 is Not at all satisfied. (n=169)* Mean Rating: 3.23.3 Top 2 Box: 40%42%

86. 86 Satisfaction with Scratch Games   69% of weekly Scratch Game players express satisfaction with the game   More than half of all Scratch Game players are satisfied (n=287)* Note: Letters indicate a significant difference across player groups at the 95% confidence level *Base=Respondents who have played Scratch games in the past year Q59c.For the following games that you have played in the past year, how satisfied are you with each game you have played? Please use a scale from 1 to 5 where 5 is Extremely satisfied and 1 is Not at all satisfied. (B) (n=87)* (C) (n=106)* (D) (n=90)* Mean Rating: 3.54.03.63.0 Top 2 Box: 51%69%56%30% DD CDD D B BC

87. 87 Satisfaction with Lotto   43% of monthly LOTTO players express satisfaction with the game (n=221)* Note: Letters indicate a significant difference across player groups at the 95% confidence level *Base=Respondents who have played Lotto in the past year Q59d.For the following games that you have played in the past year, how satisfied are you with each game you have played? Please use a scale from 1 to 5 where 5 is Extremely satisfied and 1 is Not at all satisfied. (B) (n=89)* (C) (n=61)* (D) (n=68)* Mean Rating: 3.13.33.32.7 Top 2 Box: 34%40%43%19% D D D D D D B B

88. 88 Satisfaction with MatchPlay   59% of weekly MatchPlay players express satisfaction with the game (n=51)* Note: Letters indicate a significant difference across player groups at the 95% confidence level *Base=Respondents who have played MatchPlay in the past year Q59e.For the following games that you have played in the past year, how satisfied are you with each game you have played? Please use a scale from 1 to 5 where 5 is Extremely satisfied and 1 is Not at all satisfied. (B) (n=22)* (C) (n=13)* (D) (n=14)* Mean Rating: 3.33.83.22.7 Top 2 Box: 41%59%31%21% D D

89. 89 Satisfaction with CASH 5   57% of weekly Cash 5 players express satisfaction with the game (n=104)* Note: Letters indicate a significant difference across player groups at the 95% confidence level *Base=Respondents who have played CASH 5 in the past year Q59f.For the following games that you have played in the past year, how satisfied are you with each game you have played? Please use a scale from 1 to 5 where 5 is Extremely satisfied and 1 is Not at all satisfied. (B) (n=42)* (C) (n=30)* (D) (n=28)* Mean Rating: 3.23.63.32.5 Top 2 Box: 42%57%43%14% D D D DD B D

90. 90 Satisfaction with Raffle Tickets   58% of Raffle players express satisfaction with the game (n=31)* *Base=Respondents who have purchased a raffle ticket in the past year Q59g.For the following games that you have played in the past year, how satisfied are you with each game you have played? Please use a scale from 1 to 5 where 5 is Extremely satisfied and 1 is Not at all satisfied. Mean Rating: 3.4 Top 2 Box: 58%