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Sales presentation on product or service
1Preservation of HOPE Scholarship ProgramJoint House & Senate Study Committee
Debbie AlfordCEO/President
September 14, 2015
Nov. 1992 - Georgia voters approve a constitutional amendment to create the Georgia Lottery; first ticket sales began on June 29, 199336th lottery in the United States; now 44 + DCGLC is established as a body corporate and politic which shall be deemed to be an instrumentality of the state and a public corporation OCGA 50-27-4Net proceeds of lottery games shall be used to support improvements and enhancements for educational purposes and programs and that such net proceeds shall be used to supplement, not supplant, existing resources for educational purposes and programsThe GLCis governed by a Board of Directors composed of seven members appointed by the Governor and approved by the State SenateLegislative Oversight Committees: House Regulated Industries/Senate Economic DevelopmentReceives no state appropriations; operating dollars come from revenues; currently operate at 10.5% of net revenuesGLC transfers profit to the state treasury quarterly; does not administer the Lottery for Education Account or reserve funds In 2013, HB 487 transferred regulatory oversight of COAMs (coin operated amusement machines) in Georgia to the GLC
2 Georgia Lottery Corporation (GLC)
On average, the GLC raises approximately $2.7 Million every day for Georgias HOPE & Pre-K Programs
To date, the GLC has raised more than $16.5 Billion for education
More than 1.7 Million students have attended college on a HOPE Scholarship or Grant
More than 1.4 Million four-year-olds have attended a lottery-funded Pre-K Program
3 Students Benefit
$138 $43 $38 -$26 $91 $37 $8 $35 $25 $31 $20 $20 $31 $14 $5 $11 -$37 $ 55 $26 $18 $35 $ Change YOY 4 $ in millions Over $16.5 Billion Returned to Education5
GLC Transfer to Lottery For Education ($ in Thousands)Worldwide Rankings #17 total sales #5 total per cap sales #10 instant sales #2 instant per cap sales
Source - LaFleurs 2015 World Lottery AlmanacNational Rankings #2 total per cap sales #2 instant per cap sales #4 per cap returns to beneficiaries
Source- LaFleurs Magazine (September/October 2014)6Worldwide and National Lottery Rankings 7FY 2015 Top Profit per Capita (PPC) Lotteries($ in Thousands)Lottery BeganYearsPopulationNet SalesProfitProfit Per Cap Massachusetts197243 6,750 $5,011,000$983,500$145.70New York196748 19,750 $7,251,000$2,203,000$111.54Georgia199322 10,100 $3,908,000$969,600$96.00Connecticut197243 3,600 $1,144,000$319,700$88.81Maryland197342 5,980 $1,762,000$525,000$87.79Pennsylvania197243 12,790 $3,820,000$1,061,000$82.96Michigan197243 9,910 $2,728,000$762,800$76.97Florida198827 19,890 $5,580,000$1,500,000$75.41South Carolina200213 4,830 $1,405,000$349,000$72.26Virginia198827 8,330 $1,844,000$533,800$64.08New Jersey*197045 8,940 $3,001,000N/AN/ANOTE: Population data obtained from 2014 U.S Census (rounded). FY15 sales and profit data obtained directly from specific lotteries.* FY15 actual profit unavailable at this time. FY14 profit per cap was $107.94.8Top PPC Lotteries YOY $ Change($ in Thousands)YOYLotteryFY14*FY15**$ Change% ChangeSouth Carolina$330,700 $349,000 $18,300 5.5%Georgia$940,097 $969,600 $29,503 3.1%Michigan$746,820 $762,800 $15,980 2.1%Massachusetts$974,560 $983,500 $8,940 0.9%Maryland$521,100 $525,000 $3,900 0.7%Florida$1,495,000 $1,500,000 $5,000 0.3%Connecticut$319,500 $319,700 $200 0.1%Virginia$538,600 $533,800 ($4,800)(0.9%)Pennsylvania$1,079,600 $1,061,000 ($18,600)(1.7%)New York$2,302,760 $2,200,000 ($102,760)(4.5%)New Jersey$965,010 N/AN/AN/A*Based on data obtained from La Fleur's 2015 World Lottery Almanac except for Connecticut, Maryland, and New York which came from their financial statements.** Unaudited FY15 data received directly from the specific lottery.
9FY 2015 Top Lotteries Based on $ Profit($ in Thousands)Lottery BeganYearsPopulationNet SalesProfitProfit Per Cap New York196748 19,750 $7,251,000$2,203,000$111.54Florida198827 19,890 $5,580,000$1,500,000$75.41California198530 38,800 $5,500,000$1,350,000$34.79Texas199223 26,960 $4,529,700$1,242,702$46.09Pennsylvania197243 12,790 $3,820,000$1,061,000$82.96Massachusetts197243 6,750 $5,011,000$983,500$145.70Georgia199322 10,100 $3,908,000$969,600$96.00Michigan197243 9,910 $2,728,000$762,800$76.97Ohio197441 11,600 $2,743,100$739,900$63.78Virginia198827 8,330 $1,844,000$533,800$64.08Maryland197342 5,980 $1,762,000$525,000$87.79Illinois*197441 12,880 N/AN/AN/ANew Jersey*197045 8,940 $3,001,000N/AN/ANOTE: Population data obtained from 2014 U.S Census (rounded). * FY15 actual profit unavailable at this time. Illinois FY14 profit was $742M. New Jersey FY14 profit was $965M.10Top Lotteries Based on $ Profit Comparison of Change in Profit YOYLotteryFY14*FY15**$ Change% ChangeGeorgia$940,097$969,600$29,503 3.1%Michigan$746,820$762,800$15,980 2.1%Texas$1,220,720$1,242,702$21,982 1.8%California$1,328,000$1,350,000$22,000 1.7%Massachusetts$974,560$983,500$8,940 0.9%Maryland$521,100$525,000$3,900 0.7%Florida$1,495,000$1,500,000$5,000 0.3%Virginia$538,600$533,800($4,800)(0.9%)Pennsylvania$1,079,600$1,061,000($18,600)(1.7%)Ohio$764,900$739,900($25,000)(3.3%)New York$2,302,760$2,200,000($102,760)(4.5%)Illinois$741,900N/AN/AN/ANew Jersey$965,010N/AN/AN/A*Based on data obtained from La Fleur's 2015 World Lottery Almanac, except for Maryland and New York which came from their financial statements.**Based on unaudited data obtained from specific lotteries.
($ in Thousands)11(All figures in Thousands except for PPC)FY 2015 Southeast Region PPC & $ ProfitLottery BeganYearsPopulationNet RevenueProfitProfit Per Cap SE Rank in Total $ Profit Georgia199322 10,100 $3,908,000 $969,600 $96.00 2Florida198827 19,890 $5,580,000 $1,500,000 $75.41 1South Carolina200213 4,830 $1,405,000 $349,000 $72.26 5Virginia198827 8,330 $1,844,000 $533,800 $64.08 3Kentucky198926 4,410 $886,930 $236,101 $53.54 7Tennessee200411 6,550 $1,373,000 $347,785 $53.10 6North Carolina20069 9,940 $1,970,000 $522,000 $52.52 4Louisiana199124 4,650 $453,800 $167,000 $35.91 8NOTE: Population data obtained from 2014 U.S Census data.12Southeast Region Comparison of Change in Profit($ in Thousands)
13Who Plays the Lottery
The demographic profile of who has ever played the Georgia Lottery reflects the U.S. Census Bureaus data of Georgias population regarding gender, ethnicity and income. Of those Georgians who have ever played the Georgia Lottery:
Approximately half are male and half are femaleApproximately half are under the age of 45Approximately half are marriedApproximately half are CaucasianApproximately half have an annual household income of $50,000 or more
(source: 2012 Bantam Group)
14
Jackpot Games: Mega Millions Powerball Jumbo Bucks Lotto
Daily Games: Fantasy 5 Cash 3 Cash 4 Georgia FIVE All or Nothing KENO! Games: $1, $2, $3, $5, $10, $20, $30. Diggi Games Our Products
Class A: kiddie rides, arcade games, juke boxes, pool tables, claw machines
Class B: line-up, match-up video games with some skill (points carry over)
15Georgia Lottery CorporationP&L Statements FY2011 FY2015 (Traditional Lottery) ($ in Thousands)
16$3.3B$3.6B$3.6B$3.7B$3.9B67.4%67.4%67.2%67.8%68.4%32.6%32.6%32.8%32.2%31.6%GLC Net Revenue & Product Mix($ in Thousands)
17Profit Margin = 36.1%Profit Return = $500,428,000Prize Payout % = 50.5%Profit Margin = 24.8%Profit Return = $969,581,000Prize Payout % = 64.7%GLC Product Mix
18Profit Margin 30.4%Profit Per Cap = $111.54Payout = 60.6%Profit Margin = 24.8%Profit Per Cap = $96.00Payout = 64.7%GLC Product Mix vs. New York Lottery19Existing GeorgiaMixNet RevenueProfitScratcher68.4%$2,594,399$461,301Draw31.6%$1,313,547$508,280Total Net Revenue$3,907,946$969,581Recalculated Georgia based on NY Product MixNY MixNet RevenueProfitScratcher50.3%$1,965,697$349,514Draw49.7%$1,942,249$751,558Total Net Revenue$3,907,946$1,101,071Incremental Profit$131,490Revised Profit Margin28.2%GLC Recalculated Based on New Yorks FY 2015 Product Mix($ in Thousands)20
GLC Tickets Provided as Prizes($ in Thousands)21
GLC Prize Expense($ in Thousands)22
Where We Sell Approximately 8,700 RetailersGLC Direct Sales (Airport Baggage Claim, 8 District Offices, Headquarters)Internet Sales ($25m FY2015) Top performing retail outlets located along state borders and Hartsfield-Jackson International Airport
Independent vs Corporate Retailers2376% of GLC Retailers are small businessesSales by Trade Style
Retailer Trade Styles24
Top PPC Lotteries FY 2014 Retailer Productivity
25
Southeast Region FY 2014 Retailer Productivity 26
GLC Operating Expenses Retailer Commissions($ in Thousands)
27*Source La Fleurs 2015 World Almanac
Lottery Retailer Commissions28GLC Operating Expenses Vendor Fees($ in Thousands)
Employee tenure65% over 6 years of serviceAlmost 50% over 10 years of serviceApproximately 17% over 20 years of service
Employee turnover rateFY11 4.5%FY12 5.6%FY13 4.5%FY14 6.0%FY15 7.3%29
Our EmployeesGeorgia Lottery Employees - Ethnic Diversity
30Of the 13 individuals that comprise the GLCs senior management team, six are minorities and four are women.
*source: Georgia Lottery Minority Business Participation Report (Dec. 1, 2014)
Georgia Lottery Employees - Gender Breakdown
Our Employees31# of GLC Employees 286 287 284 288 291 298 # of COAM Employees - - - 11 29 Total Employees 286 287 284 288 302 327
GLC Operating Expenses SalariesTotal Salary and Headcount($ in Thousands)32
Bonuses FY 2010 FY 201533
GLC Operating Expenses Advertising ($ in Thousands)34
Advertising costs as % of net sales Source: 2015 Lafleurs World Almanac35
GLC Operating Expenses - Marketing($ in Thousands) FY2011 FY2012 FY2013 FY2014FY2015Advertising$21,130$20,563$18,796$19,563$21,113Other Gaming 18,874 19,164 19,270 21,133 18,222 TOTAL MARKETING EXPENSE$40,004 $39,727 $38,066 $40,696 $39,335 Total % of Revenue1.20%1.11%1.05%1.09%1.01%ROI$21.15 $22.69 $24.36 $23.10 $24.65 36
GLC Distribution of Net Revenues - Traditional LotteryBy gameBy price pointBased on historical trendsIncorporating strategic initiativesNew game launches and matrix changes37
How We Forecast Annually38
Historical Profit Growth
Stabilize and grow draw gamesFocus on quality distribution and inventory optimizationExpand corporate business development, especially non-traditional locationsDeploy mobile sales channelAchieve operational efficiencies39
Our Strategic Focus40GLC Traditional Lottery Projected Profits($ in Millions)41Coin Operated Amusement Machine (COAM) OriginationHB 487Signed by Governor Deal on April 10, 2013.Transferred COAM responsibilities to the LotteryResponsibilities include:Licensure of owners and operators of Class A and B COAMsClass A- kiddie rides, arcade games, juke boxes, pool tables, claw machinesClass B- line-up, match-up video games with some skill (points carry over)Issuance of decals for COAMsCollection of license and decal fees for COAMsImplementation of a central accounting systemCollection of net proceeds from Class B COAMsCompliance and Enforcement
42
Recent COAM LegislationSB 190 - July 1, 2015Provides for licensing of manufacturers and distributorsMandates arbitration for licensee disputesCreates the ability to implement staggered licensing periodsPlaces a cap on Master License Holders at 220 with an auction provisionNo more than 9 Class B COAMs in a locationIncreases late fee for licensing 43
COAM Update FY 2014Established intergovernmental agreements with GBI, DOAA and DORDeveloped and deployed a revenue reporting systemDeveloped licensing criteria with integrity checksCreated online license applicationsInstituted enforceable rules and regulationsMet monthly with the COAM advisory boardWrote and awarded an RFP for the centralized gaming systemStaffed the COAM DivisionImplemented responsible gaming initiatives and doubled the transfer to DBHDD for treatment of problem gambling from $200,000 to $400,000Created an anonymous tip line for consumers to report COAM fraud and abuse
Brought licensing and enforcement activities in-houseProcessed 8,100 Class A and B licensees with integrity checksTested, certified, and deployed the centralized COAM gaming systemOn-boarded over 20,000 Class B COAMs in approximately 5,000 locations throughout GeorgiaBegan conducting financial sweeps of retailersSet up a hearing/arbitration systemIncreased compliance, enforcement, and education efforts through partnerships with GBI, local law enforcement, DOAA, DOR, industry associations, and banking regulators44
COAM Update FY 201545
FY 2015 COAM EnforcementAlmost 4,400 compliance inspections were conductedOver 1,300 citations and warnings were issued by GLC Compliance Inspectors- almost $1 million in fines leviedMore than 340 audits of licensees were conductedGBI served 58 search warrants, made 36 arrests, and seized currency, bank accounts, businesses, and property48 retailers were suspended due to illegal activities and/or non-compliance46
Georgia Lottery CorporationP&L Statements FY2014-2015 (COAM)FY14FY15COAM REVENUECOAM Centralized System - 0.00%5,91038.68%COAM Licensing Renewals 10,190 99.83%8,83457.82%COAM Fines/Pen/Assmt Fees - 0.00%4703.08%COAM NSF Fees - 0.00%260.17%COAM Other Revenue - 0.00%00.00%COAM CC Renewal Processing Fee - 0.00%90.06%COAM ACH Renewal Processing Fee - 0.00%210.14%Interest Income 17 0.17%80.05%COAM Revenue 10,207 100.00%15,278100.00%COAM EXPENSESPersonnel Costs 1,301 12.75%1,80911.84%Operating Expenses 666 6.52%1,2588.23%COAM Operating Expenses 1,967 19.27%3,06721.45%DOR MOU Expenses 480 4.70%270.18%DOAA MOU Expenses 380 3.72%4072.67%Investigations and Enforcement 472 4.62%1,2958.48%Other COAM Operating Expenses 1,333 13.06%1,72911.32%Total Operating Expenses 3,299 32.32%4,79732.77%Gaming ExpensesIntralot Vendor Fees - 0.00%1,4699.62%Total COAM Expenses 3,299 32.32%6,26642.38%Gross Proceeds for Education 6,908 67.68%9,01257.62%Distribution of Retained Earnings - 0.00%1,9081.37%Net Proceeds For Education 6,908 67.68%10,92058.99%Proceeds Held as Retained Earnings 1,908 - Net Transfer for Education 5,000 10,920($ in Thousands)47
COAM Projected Profits($ in Thousands)
4748
Consolidated Projected Profits($ in Thousands)49 Our MissionTo maximize revenues for HOPE and Pre-K.
Our VisionTo be recognized globally as a top performer and innovative leader in the lottery industry and a trusted and valued partner for the state.
Our MottoWe do it for Georgias kids!
Charts 1COAM Chart
COAM Fee5%5%6%7%8%9%10%Consolidated
Comparative Lottery Pool:
CaliforniaConnecticutFlorida
MassachusettsNew York North Carolina
OhioPennsylvaniaSouth Carolina
VirginiaComparative Lottery Pool:
California Connecticut Florida Massachusetts New York
North Carolina Ohio Pennsylvania South Carolina Virginia25.3%,$846M25.3%,$846M25.5%,$927M25.1%,$941M24.8%,$970M
Chart 2Product Mix
Data364000000037440000003908000000364000037440003908000Gross revenueFY13FY14FY15FY16BFY17FY18FY19FY20Actual3,640,0003,744,0003,908,0004,013,0003-Yr Avg.4,013,0004,109,3124,207,9354,308,9264,412,3402.40%5-Yr Avg.4,013,0004,137,4034,265,6624,397,8984,534,2333.10%10-Yr Avg.4,013,0004,125,3644,240,8744,359,6194,481,6882.80%National Avg.4,013,0004,138,6484,268,2314,401,8704,539,6943.13%506,3482.34%
3 yr3 yrScratchers2,927,7913,013,9453,102,6343,193,9333,287,9182.94%Draw1,085,2091,088,9471,092,6991,096,4631,100,2400.34%
5 yr5 yrScratchers2,927,7913,028,4043,132,4743,240,1213,351,4673.44%Draw1,377,4841,411,2511,445,8461,481,2891,517,6012.45%
10 yr10 yrScratchers2,927,7913,027,2793,130,1473,236,5113,346,4893.40%Draw1,377,4841,400,4961,423,8921,447,6791,471,8631.67%
National AvgNational (3 yr)Scratchers2,927,7913,077,4013,234,6563,399,9473,573,6855.11%Draw1,377,4841,447,8731,521,8601,599,6271,681,3685.11%
National Net ProceedsFY13FY14FY15FY16BFY17FY18FY19FY20FY17FY18FY19FY20Actual927,478940,097969,581989,8113-Yr Avg.989,8111,027,2261,066,0551,106,3521,148,1720.24665113383.78%3.78%3.78%3.78%5-Yr Avg.989,8111,006,4401,023,3481,040,5401,058,0211.68%1.68%1.68%1.68%10-Yr Avg.989,8111,008,3201,027,1761,046,3841,065,9521.87%1.87%1.87%1.87%National Avg.989,8111,005,5491,021,5371,037,7801,054,280Adj factor0.01.59%1.59%1.59%1.59%23.30%23.00%22.60%
Top 11 Net ProceedsFY13FY14FY15FY16BFY17FY18FY19FY20FY17FY18FY19FY20Actual927,478940,097969,581989,8113-Yr Avg.989,8111,027,2261,066,0551,106,3521,148,172ERROR:#DIV/0!3.78%3.78%3.78%3.78%5-Yr Avg.989,8111,006,4401,023,3481,040,5401,058,0211.68%1.68%1.68%1.68%10-Yr Avg.989,8111,008,3201,027,1761,046,3841,065,9521.87%1.87%1.87%1.87%National Avg.989,8111,005,9451,022,3421,039,0061,055,942Adj factor0.01.63%1.63%1.63%1.63%
23.30%23.00%22.60%
SE region Net ProceedsFY13FY14FY15FY16BFY17FY18FY19FY20FY17FY18FY19FY20Actual927,478940,097969,581989,8113-Yr Avg.989,8111,027,2261,066,0551,106,3521,148,172ERROR:#DIV/0!3.78%3.78%3.78%3.78%5-Yr Avg.989,8111,006,4401,023,3481,040,5401,058,0211.68%1.68%1.68%1.68%10-Yr Avg.989,8111,008,3201,027,1761,046,3841,065,9521.87%1.87%1.87%1.87%National Avg.989,8111,037,8171,088,1511,140,9261,196,261Adj factor0.04.85%4.85%4.85%4.85%23.30%23.00%22.60%
YOY1.36%3.14%2.09%est @2.09%1,010,4631,048,6591,088,2981,129,436GLC CAGR for net proceeds1.36%1.49%1.64%1.74%1.81%1.85%1.85%927,478940,097969,581989,8111,011,1201,032,6141,054,7111,054,7113.14%FY15 YOY2.09%FY16 YOY
Effective margin checksum24.67%25.00%25.33%25.68%26.02%
Personnel Expense Growth
3912155.93234022200.51564195151.466244,305,2754,396,1744,489,6254,585,7024,585,7023912155.93234022200.51564195151.466244,305,2754,439,6554,578,3204,721,4104,721,4103912155.93234022200.51564195151.4662443052754427774.446649544554038.95924784684189.835669824684189.835669823912155.93234022200.51564195151.4662443052754377605.664451245.18484526218.3742124526218.374212
3.9124.0224.1954.3054.3964.4904.5864.5863.9124.0224.1954.3054.4404.5784.7214.7213.9124.0224.1954.3054.4284.5544.6844.6843.9124.0224.1954.3054.3784.4514.5264.526
Revenue & Mix
FY11FY12FY13FY14FY15Net Scratcher Sales2,179,9312,327,7982,370,4032,460,5482,591,280Scratchers243,792257,300260,244266,854278,505Net Draw Sales1,155,6751,232,0951,265,5281,279,1941,312,157Draw18,52417,48215,98115,42513,179Net Revenue3,340,3993,564,4833,640,4703,744,4583,907,9461,936,1392,070,4982,110,1592,193,6942,312,7751,137,1511,214,6131,249,5471,263,7691,298,9783,073,2903,285,1113,359,7063,457,4633,611,753Scratcher2,423,7232,585,0982,630,6472,727,4022,869,7852,921,403Draw1,174,1991,249,5771,281,5091,294,6191,325,3361,383,8723,335,6063,559,8933,635,9313,739,7423,903,437Total sales3,597,9223,834,6753,912,1564,022,0214,195,1214,305,27565.4%65.4%65.2%65.8%66.4%
Scratcher2,423,7232,585,0982,630,6472,727,4022,869,7852,921,403Draw1,174,1991,249,5771,281,5091,294,6191,325,3361,383,872Total sales3,597,9223,834,6753,912,1564,022,0214,195,1214,305,275YOY growth6.6%2.0%2.8%4.3%2.6%checksum333560600.0%355989300.0%363593100.0%373974200.0%390343700.0%0.0%Free TicketsFY11FY12FY13FY14FY15Total $262,316274,782276,224282,278291,684% of Gross Sales7.3%7.2%7.1%7.0%6.9%Revenue BreakdownFY11FY12FY13FY14FY15General & Admin34,32433,96334,85634,10836,671Advert. & Other Gaming40,00439,72738,06640,69639,335Vendor Fees68,20270,94274,39576,39084,479Retailer Commissions230,929228,713233,222239,322249,008Prize Expense2,120,8352,289,8112,332,4532,413,8442,528,871Proceeds for Education846,103901,328927,478940,097969,581
Total846,103901,328927,478940,097969,581Gross Revenue BreakdownFY11FY12FY13FY14FY15Tickets Provided as Prizes262,316274,782276,225282,279291,684General & Admin34,32433,96334,85634,10836,671Advert. & Other Gaming40,00439,72738,06640,69639,335Vendor Fees68,20270,94274,39576,39084,479Retailer Commissions230,929228,713233,222239,322249,008Prize Expense2,120,8352,289,8112,332,4532,413,8442,528,871Proceeds for Education846,103901,328927,478940,097969,581
Total846,103901,328927,478940,097969,581COAM Projected ProceedsFY16 Prel BudgetConservModAggressFY14FY15FY16BFY17FY18FY19FY20221082484526511COAM Actuals5,00010,92019,318221082484526511COAM Projected Net Proceeds19,31822,41426,07429,73433,39414.4%28.6%37.2%YOY GrowthERROR:#DIV/0!ERROR:#DIV/0!16.0%
Consolidated Net proceeds
FY14FY15FY16BFY17FY18FY19FY20TradFY16BFY17FY18FY19FY20Actuals946,905978,5931,009,12939898111027225.85581066054.993149241106351.871890281148171.97264773Total Projected GLC Proceeds (3 yr)1,009,1291,049,6401,092,1291,136,0861,181,56659898111006439.82481023348.013856641040540.260489431058021.33686565Total Projected GLC Proceeds (5 yr)1,009,1291,028,8541,049,4221,070,2741,091,415109898111008320.46571027176.058408591046384.250700831065951.63618894Total Projected GLC Proceeds (10 yr)1,009,1291,030,7341,053,2501,076,1181,099,346Cons31,009,1291,049,6401,092,1291,136,0861,181,566GLC989,8111,008,3201,027,1761,046,3841,065,95251,009,1291,028,8541,049,4221,070,2741,091,415COAM Net Proceeds19,31822,41426,07429,73433,394101,009,1291,030,7341,053,2501,076,1181,099,346Margin & Mix
FY11FY12FY13FY14FY15Margin25.3%25.3%25.5%25.2%24.8%Scratcher Gross Sales0.0%0.0%0.0%0.0%0.0%Draw Gross Sales0.0%0.0%0.0%0.0%0.0%
Personnel chartGeorgia Lottery CorporationPersonnel ExpenseFY 2011 - FY 2016($ in Thousands) GLC OnlyFY2016 (Budget)FY2010FY2011FY2012FY2013FY2014FY2015
26,240,49523,295,41023,388,62923,774,00224,454,47624,408,46126,240,495
Salaries18,338$16,518$16,542$16,635$16,574$17,050$17,709Salaries18,337,8270.00.00.00.00.00.0Health3,6712,6932,9993,2013,6173,4604,184Health Insurance3,671,0000.00.00.00.00.00.00.0401K1,4929801,1991,2091,0701,2651,096401K - Employer Exp1,492,4470.00.00.00.00.00.00.0FICA1,4611,0281,5111,2421,2711,2681,320FICA - Company Portion1,461,0960.00.00.00.00.00.00.0Parking360177210222254301370Parking Programs Expense360,0000.00.00.00.00.00.00.0Sales Commissions1,4471,5378981,1461,3471,6021,410Sales Employee Commissions1,447,0001,410,3634,195,151,4660.034%4,022,200,5160.04%0.00.00.00.00.00.00.04,305,275,000ERS1084445577810098ERS - Employer Exp107,8230.4000%0.00.00.00.00.00.00.0Payroll Misc.72587152686047Payroll Vendor Svc Fees72,0000.00.00.00.00.00.00.0Annual Leave43244(83)111859742Annual Leave43,0170.1596%0.00.00.00.00.00.00.0Sick Leave(36)17(5)(1)(9)(43)(35)Sick Leave(36,362)-0.1349%
26,955,84926955849Total Personnel Services26,95623,29523,38923,77424,45425,16026,240Salaries Only YOY Change3.55%-3.40%1.95%0.79%4.08%2.50%Salaries Only CAGR1.73%1.86%Total Personnel YOY Change2.73%0.40%1.65%2.86%2.89%4.29%Total Personnel CAGR2.39%2.33%
Georgia Lottery CorporationPersonnel ExpenseFY 2011 - FY 2016(% of Total Net Revenue) GLC OnlyFY2016 (Budget)FY2010FY2011FY2012FY2013FY2014FY2015
26,240,49523,295,41023,388,62923,774,00224,454,47624,408,46126,240,495
Salaries0.43%0.49%0.50%0.47%0.46%0.46%0.45%Salaries18,452,3060.00%0.00%0.00%0.00%0.00%0.00%0.00%Health0.09%0.08%0.09%0.09%0.10%0.09%0.11%Health Insurance3,671,0000.00%0.00%0.00%0.00%0.00%0.00%0.00%401K0.03%0.03%0.04%0.03%0.03%0.03%0.03%401K - Employer Exp1,492,4470.00%0.00%0.00%0.00%0.00%0.00%0.00%FICA0.03%0.03%0.05%0.03%0.03%0.03%0.03%FICA - Company Portion1,461,0960.00%0.00%0.00%0.00%0.00%0.00%0.00%Parking0.01%0.01%0.01%0.01%0.01%0.01%0.01%Parking Programs Expense360,0000.00%0.00%0.00%0.00%0.00%0.00%0.00%Sales Commissions0.03%0.05%0.03%0.03%0.04%0.04%0.04%Sales Employee Commissions1,447,0001,410,3634,195,151,4660.034%0.00%0.00%0.00%0.00%0.00%0.00%0.00%4,305,275,000ERS0.00%0.00%0.00%0.00%0.00%0.00%0.00%ERS - Employer Exp00.0000%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Payroll Misc.0.00%0.00%0.00%0.00%0.00%0.00%0.00%Payroll Vendor Svc Fees72,0000.00%0.00%0.00%0.00%0.00%0.00%0.00%Annual Leave0.00%0.01%-0.00%0.00%0.01%0.00%0.00%Annual Leave00.0000%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Sick Leave-0.00%0.00%-0.00%-0.00%-0.00%-0.00%-0.00%Sick Leave(0)-0.0000%
26,955,84926955849TOTAL % of NET REVENUE0.63%0.69%0.70%0.67%0.67%0.67%0.67%
4,305,2753,392,7553,340,3993,564,4833,640,4703,744,4583,907,946
FY11FY12FY13FY14FY15# of Employees287284288291298% of Net Revenue0.52%0.50%0.49%0.50%0.49%Profit per Employee$2,948$3,174$3,220$3,231$3,254
Total Salaries17,44117,78117,92118,65219,119Total Revenue4,013,0123,340,3993,564,4833,640,4703,744,4583,907,946Total Profit846,106901,328927,478940,097969,600
Executive Comp12,868FY11FY12FY13FY14FY15# of Employees1211131514% of Net Revenue0.07%0.06%0.06%0.06%0.05%
Exec Comp2,3722,2562,2112,2162,078
SalaryBonusTotalFY20101,972,500532,1522,504,652FY20112,076,956295,0972,372,053FY20122,072,520183,0452,255,565FY20132,174,54936,3922,210,941FY20142,247,70822,5202,270,228FY20152,033,69947,9492,081,648
$ Change FY10 vs FY1561,199(484,203)(423,004)% Change FY10-FY153.1%(91.0%)(16.9%)
COAMFY2015FY2014FY2013FY2012FY2011FY2010
1,809,1231,300,8680.00.00.00.0
6200Salaries1,467,6211,005,2600.00.00.00.0
6240Health35,37281,7940.00.00.00.0
6235401K103,39974,8260.00.00.00.0
6250FICA108,34480,5790.00.00.00.0
6280Parking23,7547,6780.00.00.00.0
6210Sales Commissions0.00.00.00.00.00.0
6230ERS0.00.00.00.00.00.0
6290Payroll Misc.0.00.00.00.00.00.0
6251Annual Leave70,15540,5420.00.00.00.0
6252Sick Leave47810,1890.00.00.00.0
Total Personal Services1,809,1231,300,8680.00.00.00.0Salaries Only YOY Chge45.99%100.00% Salaries Only CAGR73.0%100.0%Total Personnel YOY Chge39.07%100.00% Total Personnel CAGR69.5%100.0%
GLC & COAMFy15FY14FY13FY12FY11FY2015FY2014FY2013FY2012FY2011FY2010
28,049,61825,709,32924,454,47623,774,00223,388,62923,295,410
6200Salaries19,176,84817,303,54116,573,61816,635,02816,542,20016,518,02518,905,91117,780,86917,440,60318,055,068
6240Health4,219,3963,542,1433,617,3753,201,3972,999,0822,692,852
6235401K1,199,0141,339,8861,070,1451,209,3181,198,931979,612
6250FICA1,428,2421,348,4071,270,6351,241,7621,511,4441,027,559
6280Parking393,884308,593253,682222,073210,093176,674
6210Sales Commissions1,410,3631,602,3701,347,3391,145,841898,4031,537,043
6230ERS97,84299,72978,01857,19845,08644,375
6290Payroll Misc.46,91660,08467,82351,57571,24357,672
6251Annual Leave112,030137,499184,65910,867(82,731)244,175
6252Sick Leave(34,919)(32,922)(8,817)(1,058)(5,122)17,423
Total Personal Services28,049,61825,709,32924,454,47623,774,00223,388,62923,295,410Salaries Only YOY Chge10.83%4.40%-0.37%0.56%0.15%Salaries Only CAGR2.5%0.9%Total Personnel YOY Chge9.10%5.13%2.86%1.65%0.40%Total Personnel CAGR3.1%2.0%GLC & COAM
FY11FY12FY13FY14FY15Total Salaries (6200/6210)18,05517,44117,78117,92118,906
# of GLC Employees287284288291298# of COAM Employees0.00.00.0Total Employees287284288291298
# of GLC Employees287284288291298# of COAM Employees0.00.00.0Total Employees287284288291298
Advertising and Other GamingGeorgia Lottery CorporationAdvertising & Other Gaming ExpenseFY 2011 - FY 2016($ in Thousands)
FY2016 (Budget)FY2011FY2012FY2013FY2014FY2015AccrualAdj FY15 actScratchers40665774067000Production4,067,0002,947,8932,453,9092,997,3673,416,2623,867,161663,8443,867,16179760027976000Media7,976,00012,947,76312,648,09310,443,01210,929,8008,773,2702,106,2608,773,2701204257912043000Total Scratchers Advertising12,043,00015,895,65615,102,00213,440,37914,346,06312,640,431
Draw25562762556000Production2,556,0002,328,2691,916,1272,670,3872,306,0311,993,830103,1181,993,83094979799498000TV/Radio9,498,0009,221,58810,445,85910,035,0129,732,2419,723,8331,113,5819,723,833327216327000Research327,0000.00.00.0318,185254,408254,40848199234820000Billboard4,820,0003,267,3514,015,0233,610,6213,853,1614,612,113364,5144,612,11330554073055000Internet3,055,000545,0125,5740.0494,8211,794,7951,714,6271,794,795448314448000Direct Response448,0001,211,6801,328,7571,462,544654,528201,31547,000201,315177027177000Corporate Messaging177,00059,66687,974110,439154,558261,02512,811261,0256000060000Service Fee60,0000.00.00.060,00010,00010,0002094214220941000Total Draw Advertsing20,941,00016,633,56717,799,31417,889,00217,573,52418,851,31832984000
TOTAL ADVERTISING32,984,00032,529,22332,901,31631,329,38131,919,58731,491,74942,685,500
Total Other Gaming*9,701,5007,474,4136,825,7956,736,9878,776,2167,843,186376230.827,843,1867,466,955Total Advertising & Other Gaming42,685,50039,334,93440,695,80338,066,36939,727,11140,003,6366,501,98839,334,934Total YOY Change (%)8.52%3.36%3.46%-6.46%4.36%0.70%5 Year CAGR 1.09%-0.34%
Scratcher Advertising YOY Change (%)-4.73%-11.89%6.74%-11.00%-4.99%Draw Advertising YOY Change (%)11.09%7.27%-1.76%0.50%7.01%Other Gaming YOY Change (%)23.69%-10.63%30.27%-1.30%-8.68%Total YOY Change (%)8.52%-3.34%6.91%-4.18%-0.69%5 Year CAGR 1.09%-0.34%
*FY15: Accounting change to capitalize Gemini equipment - $918,000. Other Gaming includes ticket dispensers, monitors, ticket checkers, jackpot signs, sponsorships, and gaming supplies.Georgia Lottery CorporationAdvertising & Other Gaming ExpenseFY 2011 - FY 2016(% of Total Revenue)
FY2016 (Budget)FY2011FY2012FY2013FY2014FY2015ScratchersProduction0.10%0.09%0.07%0.08%0.09%0.10%Media0.20%0.39%0.35%0.29%0.29%0.22%Total Scratchers Advertising0.30%0.48%0.42%0.37%0.38%0.32%
DrawProduction0.06%0.07%0.05%0.07%0.06%0.05%TV/Radio0.24%0.28%0.29%0.28%0.26%0.25%Research0.01%0.00%0.00%0.00%0.01%0.01%Billboard0.12%0.10%0.11%0.10%0.10%0.12%Internet0.08%0.02%0.00%0.00%0.01%0.05%Direct Response0.01%0.04%0.04%0.04%0.02%0.01%Corporate Messaging0.00%0.00%0.00%0.00%0.00%0.01%Service Fee0.00%0.00%0.00%0.00%0.00%0.00%Total Draw Advertsing0.52%0.50%0.50%0.49%0.47%0.48%
TOTAL ADVERTISING0.82%0.97%0.92%0.86%0.85%0.81%
Total Other Gaming0.24%0.22%0.19%0.19%0.23%0.20%
TOTAL % of REVENUE1.06%1.18%1.14%1.05%1.06%1.02%SalesAd $Other Major Cosumer Product CompaniesFY2014FY2013FY2012FY2014FY2013FY2012Coca Cola7.8%7.0%7.0%45,99846,85448,017Verizon2.8%3.0%2.2%87,60081,00075,900McDonald's3.6%3.5%3.5%27,44128,10627,5671000988963
Total Revenue4,013,011,6743,340,3993,564,4833,640,4703,744,4583,907,946
ADVERTISING EXPENSES:FY15FY14FY13FY12FY11
Scratcher Production3,203,3173,416,2622,997,3672,453,9092,947,893Scratcher Media13,168,99710,929,80010,443,01212,648,09312,947,763
Draw Production1,890,7112,306,0312,670,3871,916,1272,328,269Draw TV/Radio8,610,2529,732,24110,035,01210,445,8599,221,588Research254,408318,1850.00.00.0Billboard4,247,5983,853,1613,610,6214,015,0233,267,351Internet80,167494,8210.05,574545,012Direct Response154,315654,5281,462,5441,328,7571,211,680Corporate248,214154,558110,43987,97459,666Service Fee10,00060,0000.00.00.0Public Relations0.00.00.00.00.0
Total Advertising Expenses31,867,98031,919,58731,329,38132,901,31632,529,223
Adv Detail30-May-15Non-BBDO JunePROJECTED DESCRIPTIONORIGINALBILLED TO DATEAdvertisingBILLINGFY2015BUDGETPER G/L & ADV ExpensesTO DATE 6/15ACCRUALEst. TOTALTOTAL
PRODUCTION5390-Production4,066,577.002,985,930.85173,737.030.00663,844.49663,844.493,823,512.375335-Direct Response448,314.00154,314.990.0047,000.0047,000.00201,314.99Total4,514,891.003,140,245.84173,737.030.00710,844.49710,844.494,024,827.36
MEDIA5300-OLG Base Radio/Traffic Alerts2,727,785.002,545,892.06401,807.09836,152.831,237,959.923,783,851.985305-OLG Base TV6,248,217.004,603,107.39709,133.581,270,107.301,979,240.886,582,348.275310-Newspaper0.00.000.000.00.00.05315-Outdoor Billboard (JPT/TF)4,819,923.004,247,598.220.00364,514.42364,514.424,612,112.645325-Internet 3,055,407.0080,167.340.001,714,627.271,714,627.271,794,794.615360-Corporate Umbrella177,027.00248,213.640.0012,811.0512,811.05261,024.69Total17,028,359.0011,724,978.650.01,110,940.674,198,212.875,309,153.5417,034,132.19
SERVICE FEES5395-Agency Service Fees-Direct Mail60,000.0010,000.000.000.000.010,000.00Total60,000.0010,000.000.00.000.000.0010,000.00
TOTAL ADVERTISING:21,603,250.0014,875,224.49173,737.031,110,940.674,909,057.366,019,998.0321,068,959.55
SPONSORSHIPS5431-Sports Sponsorships2,093,943.001,331,973.72124,992.09247,253.12372,245.211,704,218.93Total2,093,943.001,331,973.720.0124,992.09247,253.12372,245.211,704,218.93
POS/COLLATERAL5411-POS/Collateral1,375,421.00687,348.92354,569.450.00109,197.70109,197.701,151,116.07Total1,375,421.00687,348.92354,569.450.00109,197.70109,197.701,151,116.07
MISCELLANEOUS5450-Miscellaneous0.000.0014,870.000.000.000.014,870.00Total14870.000.0014,870.000.000.000.0014870.00
NEW GAME DEVELOPMENT5451-Instant-Radio4,128,379.002,912,548.27238,573.73407,659.83646,233.563,558,781.835452-Instant-TV5,869,600.003,907,447.31315,202.94705,921.601,021,124.544,928,571.855453-Instant-Production2,556,276.001,890,711.410.00103,118.30103,118.301,993,829.71Total12,554,255.008,710,706.990.0553,776.671,216,699.731,770,476.4010,481,183.39
PR/FLEISHMAN HILLARD5455-PR327,216.00254,407.760.000.000.0254,407.76Total327,216.00254,407.760.00.000.000.00254,407.76
SPECIAL PROJECTS/PUBLICITY5459-Special Projects/Publicity798,404.00166,011.86579,466.930.0019,780.0019,780.00765,258.79Total798,404.00166,011.86579,466.930.0019,780.0019,780.00765,258.79
SERVICE FEES5496-Agency Service Fees240,000.0060,000.000.000.000.060,000.00Total240,000.0060,000.000.00.000.000.0060,000.00
SUBTOTAL:17,389,239.0011,210,449.25948,906.38678,768.761,592,930.552,271,699.3114,431,054.94
GRAND TOTALS38,992,489.0026,085,673.741,122,643.411,789,709.436,501,987.918,291,697.3435,500,014.49Monthly Average w/svgs Initiatiive2,991,040.752,371,424.898,291,697.342,958,334.54
Original Budget Total$38,992,489.00FY2015 Saving Initiative(3,100,000.00)Revised Budget Total$35,892,489.00
BILLED TO DATE 05/30/2015$26,085,673.74Non-BBDO Advertising Expenses1,122,643.41Non-BBDO Advertising Accural50,844.41June Invoices 06/15/20151,789,709.43June thru Sept Accrual6,501,987.91PROJECTED FY2015 TOTAL$35,550,858.90
Variance$341,630.10
adv accrualPRODUCTIONnominal5300-OLG Base Radio/Traffic Alerts5300836,152.83x5305-OLG Base TV53051,270,107.302,106,260.13x5310-Newspaper53100.05315-Outdoor Billboard (JPT/TF)5315364,514.42x5325-Internet 53251,714,627.27x5335-Direct Response533547,000.00x5360-Corporate Umbrella536012,811.05x5390-Production5390663,844.49x5395-Agency Service Fees-Direct Mail53950.005411-POS/Collateral5411109,197.70x5431-Sports Sponsorships5431247,253.12x5451-Instant-Radio5451407,659.83x5452-Instant-TV5452705,921.601,113,581.43x5453-Instant-Production5453103,118.30x5459-Special Projects/Publicity545919,780.00376,230.82x
GRAND TOTALS6,501,987.916,501,987.910.0
NY recalculationNew York Profit ProjectionRecalculated Based on GA MixExisting GeorgiaMixProfit %Net RevenueProfitProfitScratcher68.4%17.8%$2,594,399$461,301172,39850.3%Draw31.6%38.7%$1,313,547$508,280375,18249.7%Total Net Revenue24.8%$3,907,946$969,581969,581
Recalculated Georgia based on NY Product MixNY MixProfit %Net RevenueProfitScratcher50.3%17.8%$1,965,697$349,514Draw49.7%38.7%$1,942,249$751,558Total Net Revenue$3,907,946$1,101,071
Incremental Profit$131,490Revised Profit Margin28.2%
Change in Profit $0.0Change in Profit PP0.0%
VA Data FormatSalesFY11FY12FY13FY14FY15Scratcher2,179,9652,327,6622,370,4602,460,6052,591,335Daily Games763,835759,241780,764807,098865,706C3, C4, F5, ALON, G5, EZKeno144,277174,256189,616193,158206,536Jackpot Games247,530298,734295,093279,060239,890MM,PB,DOD,WFL,JBL, CM
Total3,335,6073,559,8933,635,9333,739,9213,903,467Checksum3,335,6063,559,8923,635,9323,739,9223,903,467Variancer111(1)0.0
Prize ExpenseFY11FY12FY13FY14FY15Scratcher1,517,8231,648,0981,673,5971,753,5721,843,914Daily Games385,170377,9780.00.00.0C3, C4, F5, ALON, G5, EZKeno93,059112,3950.00.00.0Jackpot Games124,782151,3390.00.00.0MM,PB,DOD,WFL,JBL, CM
Total2,120,8342,289,8101,673,5971,753,5721,843,914Checksum2,120,8352,289,8112,332,4532,413,8442,528,871Variancer(1)(1)(658,856)(660,272)(684,957)
FY14FY15YOY PP ChangeScratcher0.0Daily Games0.0Keno0.0Jackpot Games0.0
VA Chart Format
GLC P&L5 Year Profit & Loss ScheduleFY11FY12FY13FY14FY15Gross Revenue3,597,9223,834,6743,912,1564,022,2014,195,151FY14FY15FY16 (B)Tickets Provided as Prizes(262,316)(274,782)(276,225)(282,279)(291,684)Traditional$940,097$969,581$989,811Other Revenue4,7934,5914,5394,5364,479COAM$5,000$10,920$19,318Total Net Revenue3,340,399100.0%3,564,483100.0%3,640,470100.0%3,744,458100.0%3,907,946100.0%Total$945,097$980,501$1,009,129
Prize Expense2,120,83563.5%2,289,81164.2%2,332,45364.1%2,413,84464.5%2,528,87164.7%Operating Expense373,45811.2%373,34410.5%380,53910.5%390,51710.4%409,49410.5% Retailer Commissions230,9296.9%228,7136.4%233,2226.4%239,3226.4%249,0086.4% Vendor Fees68,2022.0%70,9422.0%74,3952.0%76,3902.0%84,4792.2% Personnel23,3890.7%23,7740.7%24,4540.7%25,1600.7%26,2400.7% Advertising21,1300.6%20,5630.6%18,7960.5%19,5630.5%21,1130.5% Other Gaming18,8740.6%19,1640.5%19,2700.5%21,1330.6%18,2220.5% G&A10,9340.3%10,1880.3%10,4020.3%8,9490.2%10,4320.3%
Net Proceeds for Education846,10625.3%901,32825.3%927,47825.5%940,09725.1%969,58124.8%
Detailed Opex373,458373,344380,539390,517409,494Variance0.00.00.00.00.0
Personnel23,38923,77424,45425,16026,240 G&A34,32333,96234,85634,10836,671
Total Adv/Other Gaming39,33518,222
FY11FY12FY13FY14FY15Operating Exp - % of Gross10.4%9.7%9.7%9.7%9.8%Operating Exp - % of Gross11.2%10.5%10.5%10.4%10.5%
COAM PROFIT & L2015-F
FY14FY15FY14FY15COAM REVENUECOAM Centralized System0.00.00%5,91038.68%05,909,919COAM Licensing Renewals10,19099.83%8,83457.82%101901018,834,025COAM Fines/Pen/Assmt Fees0.00.00%4703.08%0470,129COAM NSF Fees0.00.00%260.17%025,855COAM Other Revenue0.00.00%00.00%00COAM CC Renewal Processing Fee0.00.00%90.06%09,208COAM ACH Renewal Processing Fee0.00.00%210.14%021,047Interest Income170.17%80.05%173398,054COAM Revenue10,207100.00%15,278100.00%1020744015,278,237COAM EXPENSESPersonnel Costs1,30112.75%1,80911.84%13008681,809,123Tip Line Expenses & POS49,332483.32%49,3320.32%49,332Responsible Gaming Activities0.00.00%00.00%0Legal Matters75,970744.29%75,9700.50%75,970Compliance Administration169,6051,661.65%169,6051.11%169,605Professional Fees: Financial Resourcing & IT410,9074,025.74%410,9072.69%410,907Computer Expenses6,40262.72%6,4020.04%6,402Office Supplies & Postage8,95787.76%8,9570.06%8,957Vehicles19,833194.31%19,8330.13%19,833Meetings and Seminars8,14679.81%8,1460.05%8,146Security Decals22,110216.62%22,1100.14%22,110Financial Services Fees89,183873.75%89,1830.58%89,183Travel12,478122.25%12,4780.08%12,478Physical Security41,689408.43%41,6890.27%41,689Miscellaneous Operating Expenses22,233217.82%22,2330.15%22,233Capital209,4522,052.04%209,4521.37%209,452Depreciation321,4243,149.06%321,4242.10%321,424Operating Expenses6666.52%1,4689.61%6656881,467,724COAM Operating Expenses1,96719.27%3,27721.45%19665563,276,847DOR MOU Expenses4804.70%270.18%47997426,826DOAA MOU Expenses3803.72%4072.67%380300407,296Investigations and Enforcement4724.62%1,2958.48%4724961,295,287Other COAM Operating Expenses1,33313.06%1,72911.32%13327701,729,409Total Operating Expenses3,29932.32%5,00632.77%32993265,006,257Gaming ExpensesIntralot Vendor Fees0.00.00%1,4699.62%01,469,290Total COAM Expenses3,29932.32%6,47642.38%32993266,475,547Gross Proceeds for Education6,90867.68%8,80357.62%69081148,802,691Distribution of Retained Earnings0.00.00%2,1181.37%02,117,566Net Proceeds For Education6,90867.68%10,92058.99%690811410,920,257
&"Arial,Bold"&11&K000000Coin Operated Amusement MachinesProfit & Loss Actual vs BudgetFor the Twelve Months Ending 6/30/2015
&"Arial,Regular"&9&K0000004b
Free TicketsGeorgia Lottery CorporationTickets Provided as Prizes
FY2016 (Budget)FY2011FY2012FY2013FY2014FY2015
Scratchers1,872,886243,792257,300260,244266,854278,505
Draw723,67418,52417,48215,98115,42513,179
TOTAL TICKETS PROVIDED2,596,560$262,316$274,782$276,225$282,279$291,684
Total % of Gross Revenue64.70%7.29%7.17%7.06%7.02%6.95%YOY Change (%)790.2%4.8%0.5%2.2%3.3%5 Year CAGR46.5%2.1%
% of Gross RevenueFY2011FY2012FY2013FY2014FY2015Scratchers10.06%9.95%9.89%9.78%9.70%Draw1.58%1.40%1.25%1.19%0.99%Total Gross Sales4,013,0123,597,9223,834,6753,912,1564,022,2014,195,151
% of Gross RevenueYOY Change ($)2,304,87612,4661,4436,0549,405Scartchers2,423,7902,584,8272,630,7602,727,5162,869,895Draw1,174,1321,249,8481,281,3961,294,6851,325,256
Rtlr CommGeorgia Lottery CorporationRetailer Commissions
FY2016 (Budget)FY2011*FY2012FY2013FY2014FY2015
Total # of Retailers8,4908,4968,5008,7008,665
Total Gross Sales4,013,012$3,597,922$3,834,675$3,912,156$4,022,201$4,195,151
Average Weekly Sales per Retailer$7,566$8,068$8,236$8,276$8,673
Retailer CommissionsERROR:#REF!$230,929$228,713$233,222$239,322$249,008
Total % of Gross RevenueERROR:#REF!6.42%5.96%5.96%5.95%5.94%YOY Change (%)ERROR:#REF!(3.5%)(1.0%)2.0%2.6%4.0%5 Year CAGRERROR:#REF!1.5%
NOTE: Gross sales include sales to GLC operated retailers that do not receive commissions such as District office sales, internet sales, etc. Commission paid to qualifying retailers is 6% of their gross sales per OCGA 50.27.
*FY2011 included retailer cashing bonuses and incentives.Total Gross Sales4,013,0123,597,9223,834,6753,912,1564,022,2014,195,151Total Net revenue3,340,3993,564,4833,640,4703,744,4583,907,946
% of Gross RevenueYOY Change ($)ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!Scartchers2,423,7902,584,8272,630,7602,727,5162,869,895Draw1,174,1321,249,8481,281,3961,294,6851,325,256
Prize PayoutGeorgia Lottery CorporationPrize Expense (net of unclaimed)
FY2016 (Budget)FY2011FY2012FY2013FY2014FY2015
Scratchers1,872,8861,517,8231,648,0981,673,5971,753,5721,843,914Draw723,674603,012641,713658,856660,272684,957
TOTAL PRIZE EXPENSE2,596,5602,120,8352,289,8112,332,4532,413,8442,528,871
Total % of Revenue64.70%63.49%64.24%64.07%64.46%64.71%YOY Change (%)2.7%8.0%1.9%3.5%4.8%5 Year CAGR3.4%3.6%
YOY Change ($)67,689168,97642,64281,391115,027
(Actual % Payout)
FY2016 (Budget)FY2011FY2012FY2013FY2014*FY2015
Scratchers71.1%69.6%70.8%70.6%71.3%71.2%Draw52.6%52.2%52.1%52.1%51.6%52.2%
* Introduction of $30 games.Impact of $30 GamesNet Revenue$190,977$354,235Net Profit$26,316$51,613Profit Margin13.8%14.6%Prize Payout75.2%74.3%Total Revenue4,013,0123,340,3993,564,4833,640,4703,744,4583,907,946
AdvertisingGeorgia Lottery CorporationAdvertising Expense
FY2016 (Budget)FY2011FY2012FY2013FY2014FY2015
Production$5,276$4,370$5,668$5,722$5,094Media$15,854$16,193$13,128$13,841$16,019TOTAL ADVERTSING EXPENSE2,596,560$21,130$20,563$18,796$19,563$21,113
Total % of Revenue64.70%0.63%0.58%0.52%0.52%0.54%
YOY Change (%)12198.4%-16.3%-2.7%-8.6%4.1%7.9%5 Year CAGR123.0%(0.02%)ROI$40.04$43.83$49.34$48.05$45.92
YOY Change ($)2,575,447(567)(1,767)7671,550
Total Revenue4,013,0123,340,3993,564,4833,640,4703,744,4583,907,946Total Profit846,106901,328927,478940,097969,600Georgia Lottery CorporationMarketing Expense
FY2016 (Budget)FY2011FY2012FY2013FY2014FY2015
Advertising$21,130$20,563$18,796$19,563$21,113Other Gaming18,87419,16419,27021,13318,222TOTAL MARKETING EXPENSE2,596,560$40,004$39,727$38,066$40,696$39,335
Total % of Revenue64.70%1.20%1.11%1.05%1.09%1.01%
5 Year CAGR100.5%(0.34%)ROI$21.15$22.69$24.36$23.10$24.65
Other Gaming includes sponsorships, jackpot signs, ticket checkers and dispensers, Keno monitors, marketing support, draw supplies, point-of-sale, and promotions.
YOY Change ($)2,557,225(277)(1,661)2,629(1,361)
Total Revenue4,013,0123,340,3993,564,4833,640,4703,744,4583,907,946Total Profit846,106901,328927,478940,097969,600FY11FY12FY13FY14FY1540,003,63639,727,11138,066,36940,695,80339,334,93440,003.6439,727.1138,066.3740,695.8039,334.93
VendorsGeorgia Lottery CorporationVendor Expense
FY2016 (Budget)FY2011FY2012FY2013FY2014FY2015*
IGT38,59941,08043,06644,80847,959SGI26,60626,11026,63830,17432,312Pollard6231,56555973930MDI1,3981,4733,2076792,458All Other Vendors**ERROR:#REF!977714925656820
TOTAL VENDOR FEES2,596,560$68,202$70,942$74,395$76,390$84,479
Total % of Net Revenue64.70%2.04%1.99%2.04%2.04%2.16%YOY Change (%)2973.6%4.0%4.9%2.7%10.6%5 Year CAGR83.4%4.4%
(1) Contracts for IGT and SGI end in September, 2017. Contracts were originally awarded in 2002 and renegotiated in 2011.(2) IGT: Fee based on 1.15% of net sales for traditional lottery, 1.0% for e-instant content services, negotiable fee for development of premium e-instant games, marketing support, and call center support.(3) SGI: Fee based on 0.99% of instant sales.
*FY15 growth due primarily to full launch of e-instant products in the internet wagering channel and a significant increase in traditional scratcher sales.**Includes draw audit fees, shared multi-state game expenses, licensed products, miscellaneous specialty printing and on-air draw expenses.
FY2016 (Budget)FY2011FY2012FY2013FY2014FY2015*
IGT38,59941,08043,06644,80847,959SGI26,60626,11026,63830,17432,312All Other Vendors**ERROR:#REF!2,9983,7524,6911,4084,208
TOTAL VENDOR FEES2,596,560$68,202$70,942$74,395$76,390$84,479
Total % of Net Revenue64.70%2.04%1.99%2.04%2.04%2.16%YOY Change (%)0.0%0.0%0.0%0.0%0.0%5 Year CAGR83.4%4.4%
(1) Contracts for IGT and SGI end in September, 2018. Contracts were originally awarded in 2003, renegotiated in 2008 extending the contract to 2013, and again in 2011 extending the contract to 2018.(2) IGT: Fee based on 1.15% of net sales for traditional lottery, 1.0% for e-instant content services, negotiable fee for development of premium e-instant games, marketing support, and call center support.(3) SGI: Fee based on 0.99% of instant sales.
*FY15 growth due primarily to full launch of e-instant products in the internet wagering channel and a significant increase in traditional scratcher sales.**Includes draw audit fees, shared multi-state game expenses, licensed products, miscellaneous specialty printing and on-air draw expenses.
YOY Change ($)2,512,0812,7403,4531,9958,089
Total Revenue4,013,0123,340,3993,564,4833,640,4703,744,4583,907,946
FY11FY12FY13FY14FY15GTECH38,598,50641,080,06643,066,48244,807,89947,959,111SGI26,605,62926,110,43026,637,53730,173,73032,311,786Pollard623,0471,564,585559,00573,265929,603MDI 1,398,0621,472,7843,206,813678,5572,458,411All others1,054,744704,9491,046,168681,842858,540Total68,279,98970,932,81474,516,00476,415,29284,517,450
GTECH38,598.5141,080.0743,066.4844,807.9047,959.11SGI26,605.6326,110.4326,637.5430,173.7332,311.79Pollard623.051,564.59559.0073.26929.60MDI 1,398.061,472.783,206.81678.562,458.41All others976.75714.14925.16656.55820.0968,20270,94274,39576,39084,479
National comparisonGeorgia Lottery CorporationTop PPC Lotteries Comparison of Net Proceeds($ in Thousands)
YOY
RankLotteryFY14*FY15**$ Change% Change123451South Carolina$330,700$349,000$18,3005.5%South Carolina3307000003490000003307003490002Georgia$940,097$969,600$29,5033.1%Georgia9400970009696000009400979696003Michigan$746,820$762,800$15,9802.1%Michigan7468200007628000007468207628004Massachusetts$971,000$983,500$12,5001.3%Massachusetts9710000009835000009710009835005Maryland$521,100$525,000$3,9000.7%Maryland5211000005250000005211005250006Florida$1,495,000$1,500,000$5,0000.3%Florida14950000001500000000149500015000007Connecticut$319,500$319,700$2000.1%Connecticut3195000003197000003195003197008Virginia$538,600$533,800($4,800)(0.9%)Virginia5386000005338000005386005338009Pennsylvania$1,079,600$1,061,000($18,600)(1.7%)Pennsylvania107960000010610000001079600106100010New York$2,302,760$2,200,000($102,760)(4.5%)New York230276000022000000002302760220000011New Jersey$965,010N/AN/AN/ANew Jersey96501000009650100
*Based on data obtained from La Fleur's 2015 World Lottery Almanac.** Unaudited FY15 data received directly from the specific lottery.
Georgia Lottery CorporationTop Lotteries - Net Margin
YOY
RankLotteryFY14FY15PP Change% Change123451New York31.5%30.3%(1.1)(3.6%)New York31.484276729630.340642670.31484276730.30340642672Maryland30.2%29.8%(0.4)(1.4%)Maryland30.226218097429.79568671960.3022621810.29795686723Virginia29.7%28.9%(0.8)(2.7%)Virginia29.743759664228.94793926250.29743759660.28947939264Michigan28.8%28.0%(0.8)(2.8%)Michigan28.763672777727.96187683280.28763672780.27961876835Connecticut28.8%27.9%(0.8)(2.9%)Connecticut28.783783783827.94580419580.28783783780.2794580426Pennsylvania28.4%27.8%(0.6)(2.2%)Pennsylvania28.410526315827.77486910990.28410526320.27774869117Florida27.8%26.9%(1.0)(3.4%)Florida27.839851024226.88172043010.27839851020.26881720438South Carolina26.2%24.8%(1.4)(5.4%)South Carolina26.24603174624.83985765120.26246031750.24839857659Georgia25.1%24.8%(0.3)(1.2%)Georgia25.109428418824.81064483110.25109428420.248106448310Massachusetts20.1%19.6%(0.4)(2.2%)Massachusetts20.061983471119.62682099380.20061983470.196268209911New Jersey33.2%0.0%N/AN/ANew Jersey**33.183521887100.33183521890Based on data obtained from La Fleur's 2015 World Lottery Almanac and unaudited data from specific lotteries.Georgia Lottery CorporationTop 11 Comparison of Net Proceeds(Per Capita)
YOY
RankLotteryPopulation in 000sFY14FY15$ Change% Change1Massachusetts6,750$143.85$145.70$1.851.3%Georgia360000036002New York19,750$116.60$111.39($5.20)(4.5%)California19600000196003Georgia10,100$93.08$96.00$2.923.1%North Carolina10000000100004Connecticut3,600$88.75$88.81$0.060.1%New York598000059805Maryland5,980$87.14$87.79$0.650.7%Pennsylvania670000067006Pennsylvania12,790$84.41$82.96($1.45)(1.7%)Ohio991000099107Michigan9,910$75.36$76.97$1.612.1%Massachusetts894000089408Florida19,890$75.16$75.41$0.250.3%Connecticut19700000197009South Carolina4,830$68.47$72.26$3.795.5%Virginia128000001280010Virginia8,330$64.66$64.08($0.58)(0.9%)South Carolina4800000480011New Jersey8,940$107.94$0.00N/AN/A83000008300
Based on data obtained from La Fleur's 2015 World Lottery Almanac and unaudited data from specific lotteries.261.14269.33Georgia Lottery CorporationTop PPC Lotteries - Change in Net Margin
YOY
RankLotteryFY14FY15PP Change% Change123451Georgia25.1%24.8%(0.3)(1.2%)Georgia25.109428418824.81064483110.25109428420.24810644832Maryland30.2%29.8%(0.4)(1.4%)Maryland30.226218097429.79568671960.3022621810.29795686723Massachusetts20.1%19.6%(0.4)(2.2%)Massachusetts20.061983471119.62682099380.20061983470.19626820994Pennsylvania28.4%27.8%(0.6)(2.2%)Pennsylvania28.410526315827.77486910990.28410526320.27774869115Virginia29.7%28.9%(0.8)(2.7%)Virginia29.743759664228.94793926250.29743759660.28947939266Michigan28.8%28.0%(0.8)(2.8%)Michigan28.763672777727.96187683280.28763672780.27961876837Connecticut28.8%27.9%(0.8)(2.9%)Connecticut28.783783783827.94580419580.28783783780.2794580428Florida27.8%26.9%(1.0)(3.4%)Florida27.839851024226.88172043010.27839851020.26881720439New York31.5%30.3%(1.1)(3.6%)New York31.484276729630.340642670.31484276730.303406426710South Carolina26.2%24.8%(1.4)(5.4%)South Carolina26.24603174624.83985765120.26246031750.248398576511New Jersey33.2%0.0%N/AN/ANew Jersey33.183521887100.33183521890
Based on data obtained from La Fleur's 2015 World Lottery Almanac and unaudited data from specific lotteries.Georgia Lottery CorporationTop Lottery - % of Instant Sales
YOYFY13FY14FY15
RankLotteryFY14FY15Payout*PP Change% ChangeFY13FY14FY151Massachusetts72.5%71.7%76.9%(0.8)(1.1%)Connecticut0.5940.594n/a0.652Georgia67.8%68.4%68.9%0.60.9%Georgia0.6720.67802088510.6840.6893Pennsylvania64.3%67.9%70.1%3.65.5%Massachusetts0.7060.7250.7170.7294South Carolina64.3%67.9%72.5%3.65.5%New York0.5240.5030.5190.7695Florida63.7%66.0%69.4%2.43.7%North Carolina0.59763313610.6341463415n/a0.696Connecticut59.4%59.5%65.0%0.10.2%Ohio0.52930056710.52014144580.5360.6967New Jersey53.0%56.0%60.0%3.05.7%Pennsylvania0.6229729730.64342105260.6790.7088Virginia54.6%55.2%69.0%0.61.1%South Carolina*0.67211474320.69242328380.7010.7019New York50.3%51.9%69.0%1.63.2%Virginia0.52517419180.54593499080.550.72510Michigan33.2%36.0%70.8%2.88.4%0.6911Maryland27.8%31.0%69.5%3.211.4%*Data obtained from La Fleur's Magazine, July-August, 2015 edition. Estimate based on planned FY15 game launches and does not consider unclaimed prizes.Georgia Lottery CorporationNational Comparison of Net Margin
GLC vs. PPC LotteriesGLCTop PPC LotteriesPPtsVariance %SE Region3 Year (FY13-15)3.60%1.57%2.03129.1%3.87%5 Year (FY11-15)1.57%2.12%(0.55)(25.8%)3.96%10 Year (FY06-15)1.81%1.59%0.2214.1%4.85%
Based on data obtained from La Fleur's 2015 World Lottery Almanac and unaudited data from specific lotteries.
FY06-11:CA = (12.4%)MA = (3.3%)FL = 4.0%NY = 0.3%GA = 2.1%TX = (0.8%)
Georgia Lottery CorporationTop 11 Comparison of Profit per Ad $($ in Thousands)
RankLotteryFY14FY15YOY % ChangeFY15 Ad ROI1231Massachusetts$5,000$8,00060.0%$122.94Massachusetts983,500122.93752Georgia$19,563$21,1137.9%$45.92Georgia969,60045.92431203523Michigan$18,622$18,6220.0%$40.96Michigan762,80040.96230265284South Carolina$8,500$8,495-0.1%$40.44South Carolina343,50040.43555032375Florida$37,486$37,5500.2%$39.95Florida1,500,00039.94673768316Maryland$10,966$14,88935.8%$35.26Maryland525,00035.26093088867Pennsylvania$37,000$37,0000.0%$28.65Pennsylvania1,060,00028.64864864868Virginia$20,800$19,930-4.2%$26.78Virginia533,80026.78374310099Connecticut$11,455$12,4178.4%$25.75Connecticut319,70025.746959813210New York$92,250$92,2500.0%$23.85New York2,200,00023.848238482411New Jersey$21,503$23,3008.4%N/ANew Jersey0.00Based on data obtained from La Fleur's 2015 World Lottery Almanac and unaudited data from specific lotteries.
FY14 Retailer Productivity
RankLottery# of Retailers*Avg weekly sales/retailerRetailer Density12341Massachusetts8,078$11,522836Massachusetts484000000011,522.2767500002Georgia8,700$8,2761,161Georgia37440000008,275.86101000003New Jersey6,834$8,1831,308New Jersey29081000008,183.3589400004Pennsylvania9,157$7,9801,397Pennsylvania38000000007,980.44127900005New York18,000$7,8141,097New York73140000007,814.10197500006Florida13,256$7,7901,500Florida53700000007,790.38198900007Maryland4,492$7,3811,331Maryland17240000007,380.6459800008Connecticut2,898$7,3661,242Connecticut11100000007,365.8236000009Virginia5,259$6,6221,584Virginia18108000006,621.62833000010South Carolina3,812$6,3561,267South Carolina12600000006,356.45483000011Michigan10,674$4,678928Michigan25964000004,677.799910000
* Data obtained from La Fleur's 2015 World Almanac.
Georgia Lottery CorporationTop Lotteries Based on Total Profit $ - YOY Change($ in Thousands)YOY
RankLotteryFY14*FY15**$ Change% Change1Georgia$940,097$969,600$29,5033.1%2Michigan$746,820$762,800$15,9802.1%3Texas$1,220,720$1,242,702$21,9821.8%4California$1,328,000$1,350,000$22,0001.7%5Massachusetts$971,000$983,500$12,5001.3%6Maryland$521,100$525,000$3,9000.7%7Florida$1,495,000$1,500,000$5,0000.3%8Virginia$538,600$533,800($4,800)(0.9%)9Pennsylvania$1,079,600$1,061,000($18,600)(1.7%)10Ohio$764,900$739,900($25,000)(3.3%)11New York$2,302,760$2,200,000($102,760)(4.5%)764.976490012Illinois$741,900N/AN/AN/A12New Jersey$965,010N/AN/AN/A
*Based on data obtained from La Fleur's 2015 World Lottery Almanac.**Based on unaudited data obtained from specific lotteries.Georgia Lottery CorporationTop Lotteries Based on Total Profit $($ in Thousands)
RankLotteryFY151New York$2,200,0002Florida$1,500,0003California$1,350,0004Pennsylvania$1,061,0005Massachusetts$983,5006Georgia$969,6007Michigan$762,8008Ohio$739,9009Virginia$533,80010Maryland$525,00011New JerseyN/A12TexasN/A
Based on unaudited data obtained from specific lotteries.
Regional comparisonGeorgia Lottery CorporationSE Regional Comparison of Net Proceeds($ in Thousands)
YOY
RankLotteryFY14FY15$ Change% Change1234561Kentucky$226,130$236,101$9,9714.4%10,000,000Florida14950000001500000000149500015000002South Carolina$330,700$343,500$12,8003.9%19,600,000Georgia9451000009696000009451009696003North Carolina$503,100$522,000$18,9003.8%38,300,000Kentucky2261300002361010002261302361014Georgia$940,097$969,600$29,5033.1%9,800,000Louisiana1707000001670000001707001670005Tennessee$337,270$347,785$10,5153.1%19,700,000North Carolina5031000005220000005031005220006Florida$1,495,000$1,500,000$5,0000.3%12,800,000South Carolina3307000003435000003307003435007Virginia$538,600$533,800($4,800)(0.9%)11,600,000Tennessee3372700003477850003372703477858Louisiana$170,700$167,000($3,700)(2.2%)6,700,000Virginia486530000533800000486530533800
Based on data obtained from La Fleur's 2015 World Lottery Almanac and unaudited data obtained from specific lotteries.
Georgia Lottery CorporationSE Regional Comparison of Net Margin
RankLotteryFY14FY15YOY ChangeYOY % Change1Louisiana38.0%36.8%(1.2)(3.2%)38.017817371936.80035257820.38017817370.36800352582Virginia29.7%28.9%(0.8)(2.7%)29.743759664228.94793926250.29743759660.28947939263Florida27.8%26.9%(1.0)(3.4%)27.839851024226.88172043010.27839851020.26881720434Kentucky26.8%26.6%(0.2)(0.7%)26.816229433926.62002638310.26816229430.26620026385North Carolina27.3%26.5%(0.8)(3.1%)27.342391304326.49746192890.2734239130.26497461936Tennessee25.6%25.3%(0.2)(0.9%)25.568190432925.33029861620.25568190430.25330298627Georgia25.1%24.8%(0.3)(1.2%)25.109428418824.81064483110.25109428420.24810644838South Carolina26.2%24.3%(1.9)(7.4%)26.24603174624.30997876860.26246031750.2430997877
Based on data obtained from La Fleur's 2015 World Lottery Almanac and unaudited data obtained from specific lotteries.
Georgia Lottery CorporationSE Regional Comparison of Net Proceeds(Per Capita)
RankLotteryPopulation in thousandsFY14FY15YOY Change ($)YOY % Change121Georgia10,100$93.08$96.00$2.923.1%93.0789108911962Florida19,890$75.16$75.41$0.250.3%75.163398692875.41478129713South Carolina4,830$68.47$71.12$2.653.9%68.467908902771.11801242244Virginia8,330$64.66$64.08($0.58)(0.9%)64.657863145364.08163265315Kentucky4,410$51.28$53.54$2.264.4%51.276643990953.53764172346Tennessee6,550$51.49$53.10$1.613.1%51.491603053453.09694656497North Carolina9,940$50.61$52.52$1.903.8%50.613682092652.51509054338Louisiana4,650$36.71$35.91($0.80)(2.2%)36.709677419435.9139784946
Based on data obtained from La Fleur's 2015 World Lottery Almanac and unaudited data obtained from specific lotteries.Population based on 2014 Census data.
Georgia Lottery CorporationSE Regional Comparison of Change in Net Margin
RankLotteryFY14FY15YOY PP ChangeYOY Change12341Kentucky26.8%26.6%(0.2)(0.7%)27.839851024226.88172043010.27839851020.26881720432Tennessee25.6%25.3%(0.2)(0.9%)25.243055555624.81064483110.25243055560.24810644833Georgia25.1%24.8%(0.3)(1.2%)26.816229433926.62002638310.26816229430.26620026384Virginia29.7%28.9%(0.8)(2.7%)38.017817371936.80035257820.38017817370.36800352585North Carolina27.3%26.5%(0.8)(3.1%)27.342391304326.49746192890.2734239130.26497461936Louisiana38.0%36.8%(1.2)(3.2%)26.24603174624.30997876860.26246031750.24309978777Florida27.8%26.9%(1.0)(3.4%)25.568190432925.33029861620.25568190430.25330298628South Carolina26.2%24.3%(1.9)(7.4%)26.868235034228.94793926250.26868235030.2894793926
Based on data obtained from La Fleur's 2015 World Lottery Almanac and unaudited data obtained from specific lotteries.
Georgia Lottery CorporationSE Regional Comparison % of Instant Sales
RankLotteryFY14FY15FY15 Payout*YOY PP ChangeYOY Change1Tennessee81.0%83.0%72.5%2.02.5%2Georgia67.8%68.4%68.9%0.60.9%3South Carolina64.3%67.9%70.1%3.65.5%4Florida63.7%66.0%69.4%2.43.7%5Virginia54.6%55.2%69.0%0.61.1%6North Carolina50.3%51.9%69.0%1.63.2%7Louisiana39.9%44.6%65.8%4.811.9%8Kentucky27.8%31.0%69.5%3.211.4%
*Data obtained from La Fleur's Magazine, July-August, 2015 edition. Estimate based on planned FY15 game launches and does not consider unclaimed prizes.
Georgia Lottery CorporationSE Regional Comparison of Free Tickets
FY14FY15RankLottery$% of Gross$% of Gross1Massachusetts2California3South Carolina4Georgia282,2787.00%291,6846.90%5Pennsylvania6Virginia1,8110.09%1,8740.07%7Ohio8New York14,8000.20%9,2000.13%9North Carolina0.00.00%1,8530.09%10Florida11Connecticut
Georgia Lottery CorporationSE Regional Comparison of Profit per Ad $($ in Thousands)
RankLotteryFY14FY15YOY % ChangeFY15 Ad ROI1Georgia$19,563$21,1137.9%$45.9298050146.442South Carolina$8,500$8,495(0.1%)$40.443Florida$37,486$37,5500.2%$39.952361014Virginia$20,800$19,930(4.2%)$26.781670005Kentucky$8,900$9,1172.4%$25.905220006Louisiana$7,340$7,5002.2%$22.273435007Tennessee*$8,173$0N/AN/A3477858North Carolina*$14,843$0N/AN/A533800Based on data obtained from La Fleur's 2015 World Lottery Almanac.* FY15 projected advertising budget was unavailable.FY14 Retailer Productivity
RankLottery# of Retailers*Avg weekly sales/retailerRetailer Density12341Georgia8,700$8,2761,161374400000037440008,275.86101002Florida13,256$7,7901,500537000000053700007,790.38198903Virginia5,259$6,622884181080000018108006,621.6246504South Carolina3,812$6,3561,718126000000012600006,356.4565505Kentucky2,844$5,7022,9298432580008432585,702.0083306North Carolina6,774$5,224713184000000018400005,223.5948307Tennessee5,000$5,073882131910000013191005,073.4644108Louisiana2,925$2,9523,3984490000004490002,952.019940
* Data obtained from La Fleur's 2015 World Almanac.
Charts 1COAM Chart
COAM Fee5%5%6%7%8%9%10%Consolidated
Comparative Lottery Pool:
CaliforniaConnecticutFlorida
MassachusettsNew York North Carolina
OhioPennsylvaniaSouth Carolina
VirginiaComparative Lottery Pool:
California Connecticut Florida Massachusetts New York
North Carolina Ohio Pennsylvania South Carolina Virginia25.3%,$846M25.3%,$846M25.5%,$927M25.1%,$941M24.8%,$970M
Chart 2Product Mix
Data364000000037440000003908000000364000037440003908000Gross revenueFY13FY14FY15FY16BFY17FY18FY19FY20Actual3,640,0003,744,0003,908,0004,013,0003-Yr Avg.4,013,0004,109,3124,207,9354,308,9264,412,3402.40%5-Yr Avg.4,013,0004,137,4034,265,6624,397,8984,534,2333.10%10-Yr Avg.4,013,0004,125,3644,240,8744,359,6194,481,6882.80%National Avg.4,013,0004,138,6484,268,2314,401,8704,539,6943.13%506,3482.34%
3 yr3 yrScratchers2,927,7913,013,9453,102,6343,193,9333,287,9182.94%Draw1,085,2091,088,9471,092,6991,096,4631,100,2400.34%
5 yr5 yrScratchers2,927,7913,028,4043,132,4743,240,1213,351,4673.44%Draw1,377,4841,411,2511,445,8461,481,2891,517,6012.45%
10 yr10 yrScratchers2,927,7913,027,2793,130,1473,236,5113,346,4893.40%Draw1,377,4841,400,4961,423,8921,447,6791,471,8631.67%
National AvgNational (3 yr)Scratchers2,927,7913,077,4013,234,6563,399,9473,573,6855.11%Draw1,377,4841,447,8731,521,8601,599,6271,681,3685.11%
National Net ProceedsFY13FY14FY15FY16BFY17FY18FY19FY20FY17FY18FY19FY20Actual927,478940,097969,581989,8113-Yr Avg.989,8111,027,2261,066,0551,106,3521,148,1720.24665113383.78%3.78%3.78%3.78%5-Yr Avg.989,8111,006,4401,023,3481,040,5401,058,0211.68%1.68%1.68%1.68%10-Yr Avg.989,8111,008,3201,027,1761,046,3841,065,9521.87%1.87%1.87%1.87%National Avg.989,8111,005,5491,021,5371,037,7801,054,280Adj factor0.01.59%1.59%1.59%1.59%23.30%23.00%22.60%
Top 11 Net ProceedsFY13FY14FY15FY16BFY17FY18FY19FY20FY17FY18FY19FY20Actual927,478940,097969,581989,8113-Yr Avg.989,8111,027,2261,066,0551,106,3521,148,172ERROR:#DIV/0!3.78%3.78%3.78%3.78%5-Yr Avg.989,8111,006,4401,023,3481,040,5401,058,0211.68%1.68%1.68%1.68%10-Yr Avg.989,8111,008,3201,027,1761,046,3841,065,9521.87%1.87%1.87%1.87%National Avg.989,8111,005,9451,022,3421,039,0061,055,942Adj factor0.01.63%1.63%1.63%1.63%
23.30%23.00%22.60%
SE region Net ProceedsFY13FY14FY15FY16BFY17FY18FY19FY20FY17FY18FY19FY20Actual927,478940,097969,581989,8113-Yr Avg.989,8111,027,2261,066,0551,106,3521,148,172ERROR:#DIV/0!3.78%3.78%3.78%3.78%5-Yr Avg.989,8111,006,4401,023,3481,040,5401,058,0211.68%1.68%1.68%1.68%10-Yr Avg.989,8111,008,3201,027,1761,046,3841,065,9521.87%1.87%1.87%1.87%National Avg.989,8111,037,8171,088,1511,140,9261,196,261Adj factor0.04.85%4.85%4.85%4.85%23.30%23.00%22.60%
YOY1.36%3.14%2.09%est @2.09%1,010,4631,048,6591,088,2981,129,436GLC CAGR for net proceeds1.36%1.49%1.64%1.74%1.81%1.85%1.85%927,478940,097969,581989,8111,011,1201,032,6141,054,7111,054,7113.14%FY15 YOY2.09%FY16 YOY
Effective margin checksum24.67%25.00%25.33%25.68%26.02%
Personnel Expense Growth
3912155.93234022200.51564195151.466244,305,2754,396,1744,489,6254,585,7024,585,7023912155.93234022200.51564195151.466244,305,2754,439,6554,578,3204,721,4104,721,4103912155.93234022200.51564195151.4662443052754427774.446649544554038.95924784684189.835669824684189.835669823912155.93234022200.51564195151.4662443052754377605.664451245.18484526218.3742124526218.374212
3.9124.0224.1954.3054.3964.4904.5864.5863.9124.0224.1954.3054.4404.5784.7214.7213.9124.0224.1954.3054.4284.5544.6844.6843.9124.0224.1954.3054.3784.4514.5264.526
Revenue & Mix
FY11FY12FY13FY14FY15Net Scratcher Sales2,179,9312,327,7982,370,4032,460,5482,591,280Scratchers243,792257,300260,244266,854278,505Net Draw Sales1,155,6751,232,0951,265,5281,279,1941,312,157Draw18,52417,48215,98115,42513,179Net Revenue3,340,3993,564,4833,640,4703,744,4583,907,9461,936,1392,070,4982,110,1592,193,6942,312,7751,137,1511,214,6131,249,5471,263,7691,298,9783,073,2903,285,1113,359,7063,457,4633,611,753Scratcher2,423,7232,585,0982,630,6472,727,4022,869,7852,921,403Draw1,174,1991,249,5771,281,5091,294,6191,325,3361,383,8723,335,6063,559,8933,635,9313,739,7423,903,437Total sales3,597,9223,834,6753,912,1564,022,0214,195,1214,305,27565.4%65.4%65.2%65.8%66.4%
Scratcher2,423,7232,585,0982,630,6472,727,4022,869,7852,921,403Draw1,174,1991,249,5771,281,5091,294,6191,325,3361,383,872Total sales3,597,9223,834,6753,912,1564,022,0214,195,1214,305,275YOY growth6.6%2.0%2.8%4.3%2.6%checksum333560600.0%355989300.0%363593100.0%373974200.0%390343700.0%0.0%Free TicketsFY11FY12FY13FY14FY15Total $262,316274,782276,224282,278291,684% of Gross Sales7.3%7.2%7.1%7.0%6.9%Revenue BreakdownFY11FY12FY13FY14FY15General & Admin34,32433,96334,85634,10836,671Advert. & Other Gaming40,00439,72738,06640,69639,335Vendor Fees68,20270,94274,39576,39084,479Retailer Commissions230,929228,713233,222239,322249,008Prize Expense2,120,8352,289,8112,332,4532,413,8442,528,871Proceeds for Education846,103901,328927,478940,097969,581
Total846,103901,328927,478940,097969,581Gross Revenue BreakdownFY11FY12FY13FY14FY15Tickets Provided as Prizes262,316274,782276,225282,279291,684General & Admin34,32433,96334,85634,10836,671Advert. & Other Gaming40,00439,72738,06640,69639,335Vendor Fees68,20270,94274,39576,39084,479Retailer Commissions230,929228,713233,222239,322249,008Prize Expense2,120,8352,289,8112,332,4532,413,8442,528,871Proceeds for Education846,103901,328927,478940,097969,581
Total846,103901,328927,478940,097969,581COAM Projected ProceedsFY16 Prel BudgetConservModAggressFY14FY15FY16BFY17FY18FY19FY20221082484526511COAM Actuals5,00010,92019,318221082484526511COAM Projected Net Proceeds19,31822,41426,07429,73433,39414.4%28.6%37.2%YOY GrowthERROR:#DIV/0!ERROR:#DIV/0!16.0%
Consolidated Net proceeds
FY14FY15FY16BFY17FY18FY19FY20TradFY16BFY17FY18FY19FY20Actuals946,905978,5931,009,12939898111027225.85581066054.993149241106351.871890281148171.97264773Total Projected GLC Proceeds (3 yr)1,009,1291,049,6401,092,1291,136,0861,181,56659898111006439.82481023348.013856641040540.260489431058021.33686565Total Projected GLC Proceeds (5 yr)1,009,1291,028,8541,049,4221,070,2741,091,415109898111008320.46571027176.058408591046384.250700831065951.63618894Total Projected GLC Proceeds (10 yr)1,009,1291,030,7341,053,2501,076,1181,099,346Cons31,009,1291,049,6401,092,1291,136,0861,181,566GLC989,8111,008,3201,027,1761,046,3841,065,95251,009,1291,028,8541,049,4221,070,2741,091,415COAM Net Proceeds19,31822,41426,07429,73433,394101,009,1291,030,7341,053,2501,076,1181,099,346Margin & Mix
FY11FY12FY13FY14FY15Margin25.3%25.3%25.5%25.2%24.8%Scratcher Gross Sales0.0%0.0%0.0%0.0%0.0%Draw Gross Sales0.0%0.0%0.0%0.0%0.0%
Personnel chartGeorgia Lottery CorporationPersonnel ExpenseFY 2011 - FY 2016($ in Thousands) GLC OnlyFY2016 (Budget)FY2010FY2011FY2012FY2013FY2014FY2014FY2015
26,240,49523,295,41023,388,62923,774,00224,454,47624,408,46124,408,46126,240,495
Salaries18,338$16,518$16,542$16,635$16,574$17,050$17,050$17,709Salaries18,337,8270.00.00.00.00.00.00.0Health3,6712,6932,9993,2013,6173,4603,4604,184Health Insurance3,671,0000.00.00.00.00.00.00.00.0401K1,4929801,1991,2091,0701,2651,2651,096401K - Employer Exp1,492,4470.00.00.00.00.00.00.00.0FICA1,4611,0281,5111,2421,2711,2681,2681,320FICA - Company Portion1,461,0960.00.00.00.00.00.00.00.0Parking360177210222254301301370Parking Programs Expense360,0000.00.00.00.00.00.00.00.0Sales Commissions1,4471,5378981,1461,3471,6021,6021,410Sales Employee Commissions1,447,0001,410,3634,195,151,4660.034%4,022,200,5160.04%0.00.00.00.00.00.00.00.04,305,275,000ERS1084445577810010098ERS - Employer Exp107,8230.4000%0.00.00.00.00.00.00.00.0Payroll Misc.7258715268606047Payroll Vendor Svc Fees72,0000.00.00.00.00.00.00.00.0Annual Leave43244(83)11185979742Annual Leave43,0170.1596%0.00.00.00.00.00.00.00.0Sick Leave(36)17(5)(1)(9)(43)(43)(35)Sick Leave(36,362)-0.1349%
26,955,84926955849Total Personnel Services26,95623,29523,38923,77424,45425,16025,16026,240Salaries Only YOY Change3.55%-3.40%1.95%0.79%4.08%0.00%2.50%Salaries Only CAGR1.73%1.86%Total Personnel YOY Change2.73%0.40%1.65%2.86%2.89%0.00%4.29%Total Personnel CAGR2.39%2.33%
Georgia Lottery CorporationPersonnel ExpenseFY 2011 - FY 2016(% of Total Net Revenue) GLC OnlyFY2016 (Budget)FY2010FY2011FY2012FY2013FY2014FY2014FY2015
26,240,49523,295,41023,388,62923,774,00224,454,47624,408,46124,408,46126,240,495
Salaries0.43%0.49%0.50%0.47%0.46%0.46%0.46%0.45%Salaries18,452,3060.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Health0.09%0.08%0.09%0.09%0.10%0.09%0.09%0.11%Health Insurance3,671,0000.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%401K0.03%0.03%0.04%0.03%0.03%0.03%0.03%0.03%401K - Employer Exp1,492,4470.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%FICA0.03%0.03%0.05%0.03%0.03%0.03%0.03%0.03%FICA - Company Portion1,461,0960.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Parking0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%Parking Programs Expense360,0000.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Sales Commissions0.03%0.05%0.03%0.03%0.04%0.04%0.04%0.04%Sales Employee Commissions1,447,0001,410,3634,195,151,4660.034%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%4,305,275,000ERS0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%ERS - Employer Exp00.0000%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Payroll Misc.0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Payroll Vendor Svc Fees72,0000.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Annual Leave0.00%0.01%-0.00%0.00%0.01%0.00%0.00%0.00%Annual Leave00.0000%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Sick Leave-0.00%0.00%-0.00%-0.00%-0.00%-0.00%-0.00%-0.00%Sick Leave(0)-0.0000%
26,955,84926955849TOTAL % of NET REVENUE0.63%0.69%0.70%0.67%0.67%0.67%0.67%0.67%
4,305,2753,392,7553,340,3993,564,4833,640,4703,744,4583,744,4583,907,946
FY11FY12FY13FY14FY15FY15# of Employees287284288291298298% of Net Revenue0.52%0.50%0.49%0.50%0.49%0.49%Profit per Employee$2,948$3,174$3,220$3,231$3,254$3,254
Total Salaries17,44117,78117,92118,65219,11919,119Total Revenue4,013,0123,340,3993,564,4833,640,4703,744,4583,907,9463,907,946Total Profit846,106901,328927,478940,097969,600969,600
Executive Comp12,868FY11FY12FY13FY14FY15FY15# of Employees121113151414% of Net Revenue0.07%0.06%0.06%0.06%0.05%0.05%
Exec Comp2,3722,2562,2112,2162,0782,078
SalaryBonusTotalFY20101,972,500532,1522,504,652FY20112,076,956295,0972,372,053FY20122,072,520183,0452,255,565FY20132,174,54936,3922,210,941FY20142,247,70822,5202,270,228FY20152,033,69947,9492,081,648
$ Change FY10 vs FY1561,199(484,203)(423,004)% Change FY10-FY153.1%(91.0%)(16.9%)
COAMFY2015FY2014FY2013FY2012FY2011FY2011FY2010
1,809,1231,300,8680.00.00.00.00.0
6200Salaries1,467,6211,005,2600.00.00.00.00.0
6240Health35,37281,7940.00.00.00.00.0
6235401K103,39974,8260.00.00.00.00.0
6250FICA108,34480,5790.00.00.00.00.0
6280Parking23,7547,6780.00.00.00.00.0
6210Sales Commissions0.00.00.00.00.00.00.0
6230ERS0.00.00.00.00.00.00.0
6290Payroll Misc.0.00.00.00.00.00.00.0
6251Annual Leave70,15540,5420.00.00.00.00.0
6252Sick Leave47810,1890.00.00.00.00.0
Total Personal Services1,809,1231,300,8680.00.00.00.00.0Salaries Only YOY Chge45.99%100.00% Salaries Only CAGR73.0%100.0%Total Personnel YOY Chge39.07%100.00% Total Personnel CAGR69.5%100.0%
GLC & COAMFy15FY14FY13FY12FY12FY11FY2015FY2014FY2013FY2012FY2011FY2011FY2010
28,049,61825,709,32924,454,47623,774,00223,388,62923,388,62923,295,410
6200Salaries19,176,84817,303,54116,573,61816,635,02816,542,20016,542,20016,518,02518,905,91117,780,86917,440,60318,055,068
6240Health4,219,3963,542,1433,617,3753,201,3972,999,0822,999,0822,692,852
6235401K1,199,0141,339,8861,070,1451,209,3181,198,9311,198,931979,612
6250FICA1,428,2421,348,4071,270,6351,241,7621,511,4441,511,4441,027,559
6280Parking393,884308,593253,682222,073210,093210,093176,674
6210Sales Commissions1,410,3631,602,3701,347,3391,145,841898,403898,4031,537,043
6230ERS97,84299,72978,01857,19845,08645,08644,375
6290Payroll Misc.46,91660,08467,82351,57571,24371,24357,672
6251Annual Leave112,030137,499184,65910,867(82,731)(82,731)244,175
6252Sick Leave(34,919)(32,922)(8,817)(1,058)(5,122)(5,122)17,423
Total Personal Services28,049,61825,709,32924,454,47623,774,00223,388,62923,388,62923,295,410Salaries Only YOY Chge10.83%4.40%-0.37%0.56%0.15%ERROR:#DIV/0!Salaries Only CAGR2.5%0.9%Total Personnel YOY Chge9.10%5.13%2.86%1.65%0.40%ERROR:#DIV/0!Total Personnel CAGR3.1%2.0%GLC & COAM
FY10FY11FY12FY13FY14FY15Total Salaries (6200/6210)18,05517,44117,78117,92118,90620,587
# of GLC Employees286287284288291298# of COAM Employees0.00.00.01129Total Employees286287284288302327
# of GLC Employees287284288291298# of COAM Employees0.00.00.0Total Employees287284288291298
Advertising and Other GamingGeorgia Lottery CorporationAdvertising & Other Gaming ExpenseFY 2011 - FY 2016($ in Thousands)
FY2016 (Budget)FY2011FY2012FY2013FY2014FY2015AccrualAdj FY15 actScratchers40665774067000Production4,067,0002,947,8932,453,9092,997,3673,416,2623,867,161663,8443,867,16179760027976000Media7,976,00012,947,76312,648,09310,443,01210,929,8008,773,2702,106,2608,773,2701204257912043000Total Scratchers Advertising12,043,00015,895,65615,102,00213,440,37914,346,06312,640,431
Draw25562762556000Production2,556,0002,328,2691,916,1272,670,3872,306,0311,993,830103,1181,993,83094979799498000TV/Radio9,498,0009,221,58810,445,85910,035,0129,732,2419,723,8331,113,5819,723,833327216327000Research327,0000.00.00.0318,185254,408254,40848199234820000Billboard4,820,0003,267,3514,015,0233,610,6213,853,1614,612,113364,5144,612,11330554073055000Internet3,055,000545,0125,5740.0494,8211,794,7951,714,6271,794,795448314448000Direct Response448,0001,211,6801,328,7571,462,544654,528201,31547,000201,315177027177000Corporate Messaging177,00059,66687,974110,439154,558261,02512,811261,0256000060000Service Fee60,0000.00.00.060,00010,00010,0002094214220941000Total Draw Advertsing20,941,00016,633,56717,799,31417,889,00217,573,52418,851,31832984000
TOTAL ADVERTISING32,984,00032,529,22332,901,31631,329,38131,919,58731,491,74942,685,500
Total Other Gaming*9,701,5007,474,4136,825,7956,736,9878,776,2167,843,186376230.827,843,1867,466,955Total Advertising & Other Gaming42,685,50039,334,93440,695,80338,066,36939,727,11140,003,6366,501,98839,334,934Total YOY Change (%)8.52%3.36%3.46%-6.46%4.36%0.70%5 Year CAGR 1.09%-0.34%
Scratcher Advertising YOY Change (%)-4.73%-11.89%6.74%-11.00%-4.99%Draw Advertising YOY Change (%)11.09%7.27%-1.76%0.50%7.01%Other Gaming YOY Change (%)23.69%-10.63%30.27%-1.30%-8.68%Total YOY Change (%)8.52%-3.34%6.91%-4.18%-0.69%5 Year CAGR 1.09%-0.34%
*FY15: Accounting change to capitalize Gemini equipment - $918,000. Other Gaming includes ticket dispensers, monitors, ticket checkers, jackpot signs, sponsorships, and gaming supplies.Georgia Lottery CorporationAdvertising & Other Gaming ExpenseFY 2011 - FY 2016(% of Total Revenue)
FY2016 (Budget)FY2011FY2012FY2013FY2014FY2015ScratchersProduction0.10%0.09%0.07%0.08%0.09%0.10%Media0.20%0.39%0.35%0.29%0.29%0.22%Total Scratchers Advertising0.30%0.48%0.42%0.37%0.38%0.32%
DrawProduction0.06%0.07%0.05%0.07%0.06%0.05%TV/Radio0.24%0.28%0.29%0.28%0.26%0.25%Research0.01%0.00%0.00%0.00%0.01%0.01%Billboard0.12%0.10%0.11%0.10%0.10%0.12%Internet0.08%0.02%0.00%0.00%0.01%0.05%Direct Response0.01%0.04%0.04%0.04%0.02%0.01%Corporate Messaging0.00%0.00%0.00%0.00%0.00%0.01%Service Fee0.00%0.00%0.00%0.00%0.00%0.00%Total Draw Advertsing0.52%0.50%0.50%0.49%0.47%0.48%
TOTAL ADVERTISING0.82%0.97%0.92%0.86%0.85%0.81%
Total Other Gaming0.24%0.22%0.19%0.19%0.23%0.20%
TOTAL % of REVENUE1.06%1.18%1.14%1.05%1.06%1.02%SalesAd $Other Major Cosumer Product CompaniesFY2014FY2013FY2012FY2014FY2013FY2012Coca Cola7.8%7.0%7.0%45,99846,85448,017Verizon2.8%3.0%2.2%87,60081,00075,900McDonald's3.6%3.5%3.5%27,44128,10627,5671000988963
Total Revenue4,013,011,6743,340,3993,564,4833,640,4703,744,4583,907,946
ADVERTISING EXPENSES:FY15FY14FY13FY12FY11
Scratcher Production3,203,3173,416,2622,997,3672,453,9092,947,893Scratcher Media13,168,99710,929,80010,443,01212,648,09312,947,763
Draw Production1,890,7112,306,0312,670,3871,916,1272,328,269Draw TV/Radio8,610,2529,732,24110,035,01210,445,8599,221,588Research254,408318,1850.00.00.0Billboard4,247,5983,853,1613,610,6214,015,0233,267,351Internet80,167494,8210.05,574545,012Direct Response154,315654,5281,462,5441,328,7571,211,680Corporate248,214154,558110,43987,97459,666Service Fee10,00060,0000.00.00.0Public Relations0.00.00.00.00.0
Total Advertising Expenses31,867,98031,919,58731,329,38132,901,31632,529,223
Adv Detail30-May-15Non-BBDO JunePROJECTED DESCRIPTIONORIGINALBILLED TO DATEAdvertisingBILLINGFY2015BUDGETPER G/L & ADV ExpensesTO DATE 6/15ACCRUALEst. TOTALTOTAL
PRODUCTION5390-Production4,066,577.002,985,930.85173,737.030.00663,844.49663,844.493,823,512.375335-Direct Response448,314.00154,314.990.0047,000.0047,000.00201,314.99Total4,514,891.003,140,245.84173,737.030.00710,844.49710,844.494,024,827.36
MEDIA5300-OLG Base Radio/Traffic Alerts2,727,785.002,545,892.06401,807.09836,152.831,237,959.923,783,851.985305-OLG Base TV6,248,217.004,603,107.39709,133.581,270,107.301,979,240.886,582,348.275310-Newspaper0.00.000.000.00.00.05315-Outdoor Billboard (JPT/TF)4,819,923.004,247,598.220.00364,514.42364,514.424,612,112.645325-Internet 3,055,407.0080,167.340.001,714,627.271,714,627.271,794,794.615360-Corporate Umbrella177,027.00248,213.640.0012,811.0512,811.05261,024.69Total17,028,359.0011,724,978.650.01,110,940.674,198,212.875,309,153.5417,034,132.19
SERVICE FEES5395-Agency Service Fees-Direct Mail60,000.0010,000.000.000.000.010,000.00Total60,000.0010,000.000.00.000.000.0010,000.00
TOTAL ADVERTISING:21,603,250.0014,875,224.49173,737.031,110,940.674,909,057.366,019,998.0321,068,959.55
SPONSORSHIPS5431-Sports Sponsorships2,093,943.001,331,973.72124,992.09247,253.12372,245.211,704,218.93Total2,093,943.001,331,973.720.0124,992.09247,253.12372,245.211,704,218.93
POS/COLLATERAL5411-POS/Collateral1,375,421.00687,348.92354,569.450.00109,197.70109,197.701,151,116.07Total1,375,421.00687,348.92354,569.450.00109,197.70109,197.701,151,116.07
MISCELLANEOUS5450-Miscellaneous0.000.0014,870.000.000.000.014,870.00Total14870.000.0014,870.000.000.000.0014870.00
NEW GAME DEVELOPMENT5451-Instant-Radio4,128,379.002,912,548.27238,573.73407,659.83646,233.563,558,781.835452-Instant-TV5,869,600.003,907,447.31315,202.94705,921.601,021,124.544,928,571.855453-Instant-Production2,556,276.001,890,711.410.00103,118.30103,118.301,993,829.71Total12,554,255.008,710,706.990.0553,776.671,216,699.731,770,476.4010,481,183.39
PR/FLEISHMAN HILLARD5455-PR327,216.00254,407.760.000.000.0254,407.76Total327,216.00254,407.760.00.000.000.00254,407.76
SPECIAL PROJECTS/PUBLICITY5459-Special Projects/Publicity798,404.00166,011.86579,466.930.0019,780.0019,780.00765,258.79Total798,404.00166,011.86579,466.930.0019,780.0019,780.00765,258.79
SERVICE FEES5496-Agency Service Fees240,000.0060,000.000.000.000.060,000.00Total240,000.0060,000.000.00.000.000.0060,000.00
SUBTOTAL:17,389,239.0011,210,449.25948,906.38678,768.761,592,930.552,271,699.3114,431,054.94
GRAND TOTALS38,992,489.0026,085,673.741,122,643.411,789,709.436,501,987.918,291,697.3435,500,014.49Monthly Average w/svgs Initiatiive2,991,040.752,371,424.898,291,697.342,958,334.54
Original Budget Total$38,992,489.00FY2015 Saving Initiative(3,100,000.00)Revised Budget Total$35,892,489.00
BILLED TO DATE 05/30/2015$26,085,673.74Non-BBDO Advertising Expenses1,122,643.41Non-BBDO Advertising Accural50,844.41June Invoices 06/15/20151,789,709.43June thru Sept Accrual6,501,987.91PROJECTED FY2015 TOTAL$35,550,858.90
Variance$341,630.10
adv accrualPRODUCTIONnominal5300-OLG Base Radio/Traffic Alerts5300836,152.83x5305-OLG Base TV53051,270,107.302,106,260.13x5310-Newspaper53100.05315-Outdoor Billboard (JPT/TF)5315364,514.42x5325-Internet 53251,714,627.27x5335-Direct Response533547,000.00x5360-Corporate Umbrella536012,811.05x5390-Production5390663,844.49x5395-Agency Service Fees-Direct Mail53950.005411-POS/Collateral5411109,197.70x5431-Sports Sponsorships5431247,253.12x5451-Instant-Radio5451407,659.83x5452-Instant-TV5452705,921.601,113,581.43x5453-Instant-Production5453103,118.30x5459-Special Projects/Publicity545919,780.00376,230.82x
GRAND TOTALS6,501,987.916,501,987.910.0
NY recalculationNew York Profit ProjectionRecalculated Based on GA MixExisting GeorgiaMixProfit %Net RevenueProfitProfitScratcher68.4%17.8%$2,594,399$461,301172,39850.3%Draw31.6%38.7%$1,313,547$508,280375,18249.7%Total Net Revenue24.8%$3,907,946$969,581969,581
Recalculated Georgia based on NY Product MixNY MixProfit %Net RevenueProfitScratcher50.3%17.8%$1,965,697$349,514Draw49.7%38.7%$1,942,249$751,558Total Net Revenue$3,907,946$1,101,071
Incremental Profit$131,490Revised Profit Margin28.2%
Change in Profit $0.0Change in Profit PP0.0%
VA Data FormatSalesFY11FY12FY13FY14FY15Scratcher2,179,9652,327,6622,370,4602,460,6052,591,335Daily Games763,835759,241780,764807,098865,706C3, C4, F5, ALON, G5, EZKeno144,277174,256189,616193,158206,536Jackpot Games247,530298,734295,093279,060239,890MM,PB,DOD,WFL,JBL, CM
Total3,335,6073,559,8933,635,9333,739,9213,903,467Checksum3,335,6063,559,8923,635,9323,739,9223,903,467Variancer111(1)0.0
Prize ExpenseFY11FY12FY13FY14FY15Scratcher1,517,8231,648,0981,673,5971,753,5721,843,914Daily Games385,170377,9780.00.00.0C3, C4, F5, ALON, G5, EZKeno93,059112,3950.00.00.0Jackpot Games124,782151,3390.00.00.0MM,PB,DOD,WFL,JBL, CM
Total2,120,8342,289,8101,673,5971,753,5721,843,914Checksum2,120,8352,289,8112,332,4532,413,8442,528,871Variancer(1)(1)(658,856)(660,272)(684,957)
FY14FY15YOY PP ChangeScratcher0.0Daily Games0.0Keno0.0Jackpot Games0.0
VA Chart Format
GLC P&L5 Year Profit & Loss ScheduleFY11FY12FY13FY14FY15Gross Revenue3,597,9223,834,6743,912,1564,022,2014,195,151FY14FY15FY16 (B)Tickets Provided as Prizes(262,316)(274,782)(276,225)(282,279)(291,684)Traditional$940,097$969,581$989,811Other Revenue4,7934,5914,5394,5364,479COAM$5,000$10,920$19,318Total Net Revenue3,340,399100.0%3,564,483100.0%3,640,470100.0%3,744,458100.0%3,907,946100.0%Total$945,097$980,501$1,009,129
Prize Expense2,120,83563.5%2,289,81164.2%2,332,45364.1%2,413,84464.5%2,528,87164.7%Operating Expense373,45811.2%373,34410.5%380,53910.5%390,51710.4%409,49410.5% Retailer Commissions230,9296.9%228,7136.4%233,2226.4%239,3226.4%249,0086.4% Vendor Fees68,2022.0%70,9422.0%74,3952.0%76,3902.0%84,4792.2% Personnel23,3890.7%23,7740.7%24,4540.7%25,1600.7%26,2400.7% Advertising21,1300.6%20,5630.6%18,7960.5%19,5630.5%21,1130.5% Other Gaming18,8740.6%19,1640.5%19,2700.5%21,1330.6%18,2220.5% G&A10,9340.3%10,1880.3%10,4020.3%8,9490.2%10,4320.3%
Net Proceeds for Education846,10625.3%901,32825.3%927,47825.5%940,09725.1%969,58124.8%
Detailed Opex373,458373,344380,539390,517409,494Variance0.00.00.00.00.0
Personnel23,38923,77424,45425,16026,240 G&A34,32333,96234,85634,10836,671
Total Adv/Other Gaming39,33518,222
FY11FY12FY13FY14FY15Operating Exp - % of Gross10.4%9.7%9.7%9.7%9.8%Operating Exp - % of Gross11.2%10.5%10.5%10.4%10.5%
COAM PROFIT & L2015-F
FY14FY15FY14FY15COAM REVENUECOAM Centralized System0.00.00%5,91038.68%0.05,909,919COAM Licensing Renewals10,19099.83%8,83457.82%10,190,1018,834,025COAM Fines/Pen/Assmt Fees0.00.00%4703.08%0.0470,129COAM NSF Fees0.00.00%260.17%0.025,855COAM Other Revenue0.00.00%00.00%0.00.0COAM CC Renewal Processing Fee0.00.00%90.06%0.09,208COAM ACH Renewal Processing Fee0.00.00%210.14%0.021,047Interest Income170.17%80.05%17,3398,054COAM Revenue10,207100.00%15,278100.00%10,207,44015,278,237COAM EXPENSESPersonnel Costs1,30112.75%1,80911.84%1,300,8681,809,123Tip Line Expenses & POS49,332483.32%49,3320.32%49,332Responsible Gaming Activities0.00.00%00.00%0.0Legal Matters75,970744.29%75,9700.50%75,970Compliance Administration169,6051,661.65%169,6051.11%169,605Professional Fees: Financial Resourcing & IT410,9074,025.74%410,9072.69%410,907Computer Expenses6,40262.72%6,4020.04%6,402Office Supplies & Postage8,95787.76%8,9570.06%8,957Vehicles19,833194.31%19,8330.13%19,833Meetings and Seminars8,14679.81%8,1460.05%8,146Security Decals22,110216.62%22,1100.14%22,110Financial Services Fees89,183873.75%89,1830.58%89,183Travel12,478122.25%12,4780.08%12,478Physical Security41,689408.43%41,6890.27%41,689Miscellaneous Operating Expenses22,233217.82%22,2330.15%22,233Capital209,4522,052.04%209,4521.37%209,452Depreciation321,4243,149.06%321,4242.10%321,424Operating Expenses6666.52%1,2588.23%665,6881,258,272COAM Operating Expenses1,96719.27%3,06721.45%1,966,5563,067,395DOR MOU Expenses4804.70%270.18%479,97426,826DOAA MOU Expenses3803.72%4072.67%380,300407,296Investigations and Enforcement4724.62%1,2958.48%472,4961,295,287Other COAM Operating Expenses1,33313.06%1,72911.32%1,332,7701,729,409Total Operating Expenses3,29932.32%4,79732.77%3,299,3264,796,805Gaming ExpensesIntralot Vendor Fees0.00.00%1,4699.62%0.01,469,290Total COAM Expenses3,29932.32%6,26642.38%3,299,3266,266,095Gross Proceeds for Education6,90867.68%9,01257.62%6,908,1149,012,143Distribution of Retained Earnings0.00.00%1,9081.37%0.01,908,000Net Proceeds For Education6,90867.68%10,92058.99%6,908,11410,920,143Proceeds Held as Retained Earnings1,9080.0Net Transfer for Education5,00010,920
&"Arial,Bold"&11&K000000Coin Operated Amusement MachinesProfit & Loss Actual vs BudgetFor the Twelve Months Ending 6/30/2015
&"Arial,Regular"&9&K0000004b
Free TicketsGeorgia Lottery CorporationTickets Provided as Prizes
FY2016 (Budget)FY2011FY2012FY2013FY2014FY2015
Scratchers1,872,886243,792257,300260,244266,854278,505
Draw723,67418,52417,48215,98115,42513,179
TOTAL TICKETS PRO
