October 22, 2021 COMMISSION

REPORT

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Table of Contents

Notice Of Public Meeting And Executive Session ................................................................... 3

Commission Minutes Of September 17, 2021, Meeting.......................................................... 5 Agency Reports .......................................................................................................................... 8

Retailer of the Quarter - Presentation ...................................................................................... 8 Director’s Presentation ............................................................................................................ 8 Financial Report Presentation ................................................................................................. 8 Products and Marketing Update – Presentation ...................................................................... 8 1st Quarter Products & Sales Review – No Presentation ......................................................... 8 New Game Introduction – No Presentation ............................................................................ 8

New Business Item #1 .............................................................................................................. 11

Instant Scratch Game Profiles ............................................................................................... 11 New Business Item #2 .............................................................................................................. 12

Instant Tab Game Profiles ..................................................................................................... 12 New Business Item #3 .............................................................................................................. 13

$500 Grand Giveaway Second Chance Promotion Profile #112 .......................................... 13

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NOTICE OF PUBLIC MEETING AND EXECUTIVE SESSION OF THE ARIZONA STATE LOTTERY COMMISSION

Pursuant to Arizona Revised Statute (A.R.S.) § 38-431.02, notice is hereby given to the members of the Arizona State Lottery Commission and to the general public that the Arizona State Lottery Commission will hold a meeting open to the public on October 22, 2021, at 10:00 a.m., in the Arizona Lottery Board Room located at 4740 East University Drive, Phoenix, Arizona. The public is welcome to join the meeting in person, via telephone, or internet through Google Hangouts Meet. The following are instructions on joining the meeting via the Google Hangouts Meet:

Join the meeting online by entering the following link into your URL

meet.google.com/tei-spwe-stm

OR Join the meeting US Toll Free by phone at 601-844-2921 when prompted enter Access Code 765 034

(#) followed by the pound key022 If you are having problems with connecting, please contact 480-921-4493. Pursuant to A.R.S. § 38-431.02(B), further notice is hereby given to the Arizona State Lottery Commission and members of the public that the Arizona State Lottery Commission may vote to go into Executive Session, which will not be open to the public, for the purpose of obtaining legal advice pursuant to A.R.S. § 38-431.03(A)(3) regarding any of the agenda items. The Commission may also vote on any item listed on the agenda. All members of the Commission will be participating by means of telephonic communication. Call to Order

1. Call for Quorum 2. Call for Notice 3. Approval of Minutes for September 17, 2021, Public Meeting

Agency Reports

1. Retailer of the Quarter - Presentation 2. Director’s Presentation 3. Financial Report - Presentation 4. Products & Marketing Update - Presentation 5. 1st Quarter Products & Sales Review - No Presentation 6. New Game Introduction - No Presentation

New Business

1. Discussion and possible action on new instant scratch game profiles: Cash King #1357, Triple Bonus Crossword #1358, and 500X #1360.

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2. Discussion and possible action on new instant tab game profiles: Big Money Bags #161, Patriot Poker #162, Hey Batter Batter #1065, and Touchdown Drive #1066.

3. Discussion and possible action on new promotion profile: $500 Grand Giveaway 2nd

Chance Promotion #112. Call to the Public

Consideration and discussion of comments from the public. Those members of the public wishing to address the Commission need not request permission in advance and will be given approximately five minutes for their comments and requests. Action taken as a result of public comment will be limited to directing staff to study the matter or rescheduling the matter for further consideration at a later date to comply with A.R.S. § 38-431.02. Announcements The next Commission meeting will be held November 19, 2021, at 10:00 a.m.

Adjournment Materials

A copy of the agenda and background material provided to Commission members, which is not exempt by law from public inspection, is available for public inspection at least 24 hours advance of the meeting at the Lottery Office located at 4740 East University Drive, Phoenix, Arizona.

Notice

Any amendments or additions to the agenda will be made available at least 24 hours prior to the meeting.

Dated this 13th day of October, 2021 ________________________________ Gregory R. Edgar Executive Director

Persons with a disability may request a reasonable accommodation by calling (480) 921-4486. Requests should be made as early as possible to allow time to arrange the accommodation.

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PUBLIC MEETING OF THE ARIZONA LOTTERY Commission Minutes of September 17, 2021, Meeting

PRESIDING Chair Jeff Weintraub (Teleconference) COMMISSIONERS Debra Roth (Teleconference), Julie Katsel (Teleconference), and Trent

Crump (Teleconference) LOTTERY Executive Director Gregory Edgar, Russ Harben, Deputy Director of

Operations, Todd Terrell, Deputy Director of Security and Regulatory Division, Greg Chmielewski, Deputy Director for Performance and Strategic Initiatives, and Sherri Zendri, Deputy Director of Legal Services (In Person)

Luanne Mansanares, Anjali Dang, and Jacob Rusywick (In Person) Serena Arlotta, Julie Bojoquez, Michael Donahoo, Christopher Fynes, Ivy

Gilio, John Gilliland, Karla Henriksen, Susan Kalember, Mia Lemke, David Lett, Jenny Lewis, Allyson Saltford, Lynda Sellers, Devin Slayton, Art Uthaisiri, Chelsea Smeland, and Steven Wood. (Teleconference)

GUESTS Attorney General Representative: Pamela (Linnins) Peiser

(Teleconference) Scientific Games Representatives: Topper Wilson, and Julio Dieppa

(Teleconference) Pollard Banknote Limited Representatives: Wes Brown and Brad

Thompson(Teleconference) Owens Harkey Representatives: Noelle Hobaica and Angie Vollmers (Teleconference)

PUBLIC Jessica Guffey (Teleconference) Call to Order

1. Call for Quorum: Pursuant to the Public Notice dated September 8, 2021, the Public Meeting of the Arizona State Lottery Commission was called to order at 10:01 a.m. by Chair Jeff Weintraub.

A quorum was present, with Chair Weintraub, Commissioner Roth, Commissioner Crump and Commissioner Katsel appearing via teleconference.

2. Notice: Notice was posted by Luanne Mansanares on September 9, 2021, at 10:30 a.m.,

at the Arizona State Lottery, located at 4740 E. University Dr., Phoenix, Arizona.

3. Approval of Minutes: Chair Weintraub entertained a motion to approve the minutes of the August 20, 2021, Public Meeting. Commissioner Roth verbally moved; Commissioner Crump verbally seconded. The vote was unanimous with Chair Weintraub verbally voting aye, Commissioner Roth verbally voting aye, and Commissioner Crump verbally voting aye. The vote was unanimous and the motion carried.

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Due to technical difficulties, communication was lost with Commissioner Katsel at approximately 10:04 am. At approximately 10:09 am, communication was reestablished with Commissioner Katsel.

Agency Reports

1. Director’s Presentation: Director Edgar gave a brief administrative update regarding theemployee engagement survey. Informing the Commission that the overall score was 78%,which was a 1% decline from previous years.

Chair Weintraub stated that he is a member of Vista a CEO group and noticed that thereis a funk and downward trend with businesses and employees and to only drop 1% in thiscurrent environment is an incredible feat and the Lottery should be commended.

Director Edgar continued his presentation by informing the Commission of an upcomingKeno RFI. He then invited Mr. Harben to speak about the FY21 audit. Mr. Harbeninformed the Commission there were no findings within the audit. In addition, theArizona Lottery is finalizing the FY21 audit.

Director Edgar advised the Commission the Audit will be available for review inNovember. The presentation is attached for the official minutes.

2. Financial Report: Mr. Russ Harben presented financial information for FY21, overallsales with the new projections and financial status. The presentation is attached for theofficial minutes.

3. New Games Introduction – No Presentation

New Business

1. Chair Weintraub asked if any members of the public wanted to address the Commission regarding new instant scratch game profiles: Ultimate Riches #1354 and Blackjack Doubler #1356. There were no responses from the public.

In accordance with A.R.S. §5-554(C), Chair Weintraub entertained a motion to approve the order and authorize the Director to issue the order regarding new instant scratch game profiles: #1354, and #1356. Commissioner Crump verbally moved, Commissioner Katsel verbally seconded. Chair Weintraub verbally voted aye, Commissioner Roth verbally voted aye, Commissioner Katsel verbally voted aye and Commissioner Crump verbally voted aye. The vote was unanimous and the motion carried.

2. Chair Weintraub asked if any members of the public wanted to address the Commission regarding new instant tab game profiles: Salute the Troops #157, Cactus Cash #158, A fast Buck #159, High Flyers #160, Paid Today #1063 and Crazy Crowns #1064. There were no responses from the public.

In accordance with A.R.S. §5-554(C), Chair Weintraub entertained a motion to approve the order and authorize the Director to issue the order regarding new instant tab game profiles: #157, #158, #159, #160, #1063, and #1064. Commissioner Roth verbally moved, Commissioner Katsel verbally seconded. Chair Weintraub verbally voted aye,

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moved, Commissioner Katsel verbally seconded. Chair Weintraub verbally voted aye, Commissioner Katsel verbally voted aye, Commissioner Roth verbally voted aye, and Commissioner Crump verbally voted aye. The vote was unanimous and the motion carried.

Call to the Public

Chair Weintraub invited members of the public to speak before the Commission. There were no responses from the public. There were no responses from the public.

Announcements

The next Commission meeting will be held October 22, 2021, at 10:00 a.m.

Adjournment

Chair Weintraub entertained a motion to adjourn. Commissioner Crump verbally moved, Commissioner Roth verbally seconded. Chair Weintraub verbally voted aye, Commissioner Katsel verbally voted aye, Commissioner Roth verbally voted aye, and Commissioner Crump verbally voted aye. The vote was unanimous and the motion carried.

Materials

A copy of the agenda and background material provided to Commission members, which is not exempt by law from public inspection, is available for public inspection at least 24 hours in advance of the meeting at the Lottery Office located at 4740 East University Drive, Phoenix, Arizona.

Notice

Any amendments or additions to the agenda will be made available at least 24 hours prior to the meeting.

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Agency Reports Report to Arizona Lottery Commission

October 22, 2021 ______________________________________________________________________

Retailer of the Quarter – Presentation

Director’s Presentation

Financial Report Presentation

Products and Marketing Update – Presentation

1st Quarter Products & Sales Review – No Presentation

New Game Introduction – No Presentation

New Scratchers Game Introductions. The following games were introduced since the last commission meeting: Crossword #1331, White Elephant #1334, Holiday Cash Drop #1335, Christmas Crossword #1336, Peppermint Payout #1337, 25 Days of Winning #1338, and 50X Cash #1339.

More information on these games are available by visiting the Scratchers section at ArizonaLottery.com

The following games were approved to end consistent with the Instant Scratch Game Ending Policy. Players have 180 days from the game-ending date to claim prizes.

Date Ended

Price Point

Game No. Game Name

Beginning Inventory

% Sold through 10/1/21

9/16/21 $10 1309 Power Shot Multiplier 2,107,320 95% 9/23/21 $5 1280 $50,000 Cash Cow 2,527,020 93% 10/5/21 $2 1234 Quick Win Bingo 6,235,500 94% 10/5/21 $1 1246 Wild Doubler 2,661,900 88% 10/5/21 $5 1255 Big Bang Bingo 4,529,460 88% 10/5/21 $5 1260 Power 8s 2,513,700 97% 10/5/21 $30 1261 100X 4,030,500 99% 10/5/21 $5 1267 Joker’s Wild Crossword 5,541,660 92% 10/5/21 $2 1293 Scratch & Match 2,433,450 82% 10/5/21 $3 1297 Twisted 3,141,500 93% 10/5/21 $10 1299 Win Big 1,785,240 93% 10/5/21 $2 1305 $100 Loaded 2,888,100 89% 10/5/21 $5 1306 $500 Loaded 3,260,580 90%

Upcoming Fast Play Game Launches. The following game has an upcoming game launch: Grand Progressive #139 (12/28/21).

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ATTACHMENT A

Dashboard ReportOctober 2021

SERVING ARIZONA FOR 40 YEARS

Dashboard

Daily Sales vs Goal

YTD Sales vs. Projection

Rolling 12 Month Total Sales

All Games

Draw Games

Instant Games

Draw Sales by Month

Draw Sales by Game

Scratcher Sales by Price Point

Price Point

FY 18 FY 19 FY 20 FY 21 FY 22

1.00 $17,675,313 $17,327,856 $15,243,692 $14,836,696 $3,036,384

2.00 $76,286,420 $76,045,580 $74,204,632 $86,605,472 $17,024,728

3.00 $26,204,778 $30,416,967 $33,795,897 $40,770,039 $8,157,792

5.00 $144,423,905 $150,294,810 $163,624,105 $214,810,495 $46,133,235

10.00 $168,662,410 $173,763,390 $207,204,520 $271,076,850 $64,625,470

20.00 $176,364,760 $204,007,420 $217,273,740 $228,944,840 $44,938,460

25.00 $0 $6,504,400 $8,628,650 $45,939,625 $17,436,800

30.00 $101,269,350 $91,917,900 $128,434,380 $206,849,550 $48,397,440

Price Point

FY 18 FY 19 FY 20 FY 21 FY 22

1.00 17,675,313 17,327,856 15,243,692 14,836,696 3,036,384

2.00 38,143,210 38,022,790 37,102,316 43,302,736 8,512,364

3.00 8,734,926 10,138,989 11,265,299 13,590,013 2,719,264

5.00 28,884,781 30,058,962 32,724,821 42,962,099 9,226,647

10.00 16,866,241 17,376,339 20,720,452 27,107,685 6,462,547

20.00 8,818,238 10,200,371 10,863,687 11,447,242 2,246,923

25.00 0 260,176 345,146 1,837,585 697,472

30.00 3,375,645 3,063,930 4,281,146 6,894,985 1,613,248

Pull Tab Sales by Price Point

Price Point

FY 18 FY 19 FY 20 FY 21 FY 22

0.25 $732,186 $673,764 $438,438 $532,824 $147,960

0.50 $2,291,940 $2,699,880 $2,069,850 $2,926,590 $691,320

1.00 $4,350,480 $4,556,220 $3,691,860 $5,201,460 $1,357,800

2.00 $1,338,600 $1,983,840 $1,851,960 $3,333,960 $972,480

Price Point

FY 18 FY 19 FY 20 FY 21 FY 22

0.25 2,928,744 2,695,056 1,753,752 2,131,296 591,840

0.50 4,583,880 5,399,760 4,139,700 5,853,180 1,382,640

1.00 4,350,480 4,556,220 3,691,860 5,201,460 1,357,800

2.00 669,300 991,920 925,980 1,666,980 486,240

Community Impact

Draw Game Monthly Sales

Month

POWERBALL MEGA MILLIONS

TOTAL MULTI-STATE DRAW GAMES

THE PICK FANTASY 5 PICK 3 TRIPLE TWIST TOTAL IN-STATE DRAW GAMES

TOTAL DRAW GAMES

Jul $6,706,316 $4,538,669 $11,244,985 $2,819,543 $1,430,644 $1,402,187 $1,363,190 $7,015,564 $22,532,504

Aug $8,036,701 $5,615,764 $13,652,465 $3,073,197 $1,533,363 $1,461,874 $1,093,002 $7,161,436 $25,347,605

Sep $13,096,097 $6,073,505 $19,169,602 $3,471,952 $1,669,722 $1,335,777 $1,105,782 $7,583,233 $31,266,958

Oct $3,359,672 $520,291 $3,879,963 $440,514 $256,583 $142,435 $135,246 $974,778 $5,308,521

Instant Game Monthly Sales

Month SCRATCHERS CHARITABLE PULL-TABS

AGE-RESTRICTED PULL-TABS

TOTAL INSTANT SALES CURRENT FY

TOTAL INSTANT SALES PREVIOUS FY

% of Change

Jul $86,488,811 $647,940 $318,600 $87,567,671 $99,384,233 -11.9%

Aug $80,371,017 $670,650 $280,800 $81,430,467 $97,119,403 -16.2%

Sep $74,728,577 $642,000 $281,580 $75,720,197 $88,263,674 -14.2%

Oct $8,161,904 $28,830 $0 $8,201,534 $82,373,823 -90.0%

Nov $0 $0 $0 $0 $77,737,189 -100.0%

Dec $0 $0 $0 $0 $84,322,031 -100.0%

Jan $0 $0 $0 $0 $105,529,691 -100.0%

Feb $0 $0 $0 $0 $92,265,908 -100.0%

Mar $0 $0 $0 $0 $104,752,484 -100.0%

Apr $0 $0 $0 $0 $101,407,455 -100.0%

May $0 $0 $0 $0 $100,871,525 -100.0%

Jun $0 $0 $0 $0 $87,800,985 -100.0%

FY22 Year-to-date Financial Status

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ATTACHMENT B

FY22 1st Quarter Product and Sales Report

The first section of this report focuses on individual product performance and is provided by the Products team. In the second section, Raynie Hosto, Deputy Director of Customer Service & Sales, has provided information on retailer sales and rankings in several different categories. Staff is available to answer any questions the Commission may have.

Douglas A. Ducey Governor

Gregory R. Edgar Executive Director

Arizona Lottery FY2022 – Product Review

1st Quarter Review – July 2021 through September 2021 As part of a quarterly review process, we report to the agency on the performance of the individual Lottery products including draw, instant and Fast Play games. The information contained in this report includes the following:

• General overview of the first quarter • A top line review of sales performance of each product • A summary review by price point for the instant games • A top down look at the top performing instant games by revenue and tickets • A review of new game introductions and game endings

General Overview Sales for the first quarter of FY22 reached $323,865,402, a decrease of 5.7% from the same period last fiscal year. The breakdown by product is as follows:

FY21 FY22 1st Quarter Mkt Share 1st Quarter Mkt Share

Scratchers®1 $282,669,848 82.29% $241,588,405 74.60%

Draw Games $48,811,416 14.21% $65,827,285 20.33%

Fast Play Games $9,916,369 2.89% $13,319,782 4.11%

Charitable Pull-Tabs $1,693,542 0.49% $1,960,590 0.61%

Non-Charitable Pull-Tabs $403,920 0.12% $1,169,340 0.36%

Total $343,495,094 100% $323,865,402 100%

1 Scratchers® is a registered service mark of the California Lottery.

FY2022 1st Quarter Product Review Page 2

As indicated in the chart above, the Scratchers contribution to total sales in the first quarter of the year represented 74.60%. The market share for draw games is 20.33% of total sales, an increase over the same quarter last fiscal year. Fast Play games represent 4.11% of total sales and pull-tabs represent 0.97% of total sales. Sales detail by product is provided in Attachments A and B. Charitable Pull-Tabs The charitable games program has 144 organizations currently licensed and selling tickets. Sales for the first quarter of the fiscal year reached $1,960,590, an increase of 15.8% over the previous year. Non-Charitable Pull-Tabs The non-charitable games program has 112 licensed retailers selling tickets. Sales for the first quarter of the fiscal year were $1,169,340, an increase of 189.5%. The large year over year increase is due to FY21 being negatively impacted by the COVID-19 pandemic. Scratchers Games Sales for Scratchers through the first quarter of the fiscal year totaled $241,588,405, a decrease of 14.5% from the previous year. Based on validations, players have earned more than $171 million in prizes. The prizes paid calculated against the sales revenues equate to an average payout of 70.9%. A total of 10 new games were introduced in the first quarter. Combined with the games carried forward, a total of 72 games contributed to the sales revenue.

Price Point $1 $2 $3 $5 $10 $20 $25 $30 Total # New Games 1 2 0 3 3 0 1 0 10

Carried Forward 6 14 5 15 13 3 2 4 62 During this same period, 7 games were ended. All games were ended because the last top prize had been redeemed.

FY2022 1st Quarter Product Review Page 3 Sales by price point For the first quarter of the fiscal year, the total number of tickets at the $5, $10, $20, $25, and $30 price points represent the largest volume of tickets sold. These price points account for 58.6% of the tickets sold, and represent 88.7% of the Scratchers revenue. The $1, $2, and $3, games account for 41.4% of the tickets sold and 11.3% of the Scratchers revenue. The chart below shows the breakdown of tickets and dollars for FY22. The charts on Attachment C show a comparable breakdown across all price points for the most recent five years.

Top 10 games The Crossword and Bingo style games continue to be strong with more than $60 million in sales, representing 24.84% of total Scratchers sales. In terms of dollars sold, three of the top ten games are Crossword or Bingo style games; they also represent six of the top ten games in terms of tickets sold. The $20 spotlight game, $215 Million Cash Explosion (#1290) had sales totaling more than $30.5 million, representing 12.6% of total Scratchers sales. The table below identifies the top 10 games in terms of sales revenue generated and total tickets sold through the first quarter.

Top 10 games in sales revenue Top 10 games in tickets sold

Game Sales

Revenue Game Tickets

Sold $20 1290 $215 Million Cash

Explosion $30,546,160 $2 1281 Crossword 2,613,333

$30 1316 Millionaire Maker $18,615,030 $5 1296 Mystery Key Crossword 1,991,532 $30 1300 Ultimate Millions $16,519,560 $1 1322 $1,000 Jackpot 1,617,889 $20 1302 $40 Million Mega Bucks $12,838,160 $20 1290 $215 Million Cash Explosion 1,527,308 $10 1298 $100,000 Crossword $12,821,240 $10 1298 $100,000 Crossword 1,282,124 $25 1326 Triple Bonus Crossword $11,255,625 $2 1295 Red Hot 7s 1,232,437 $5 1296 Mystery Key Crossword $9,957,660 $2 1287 Red Line Bingo 1,218,825 $10 1315 Win it All $9,148,180 $3 1294 Crossword Corner Cash 1,183,518 $10 1320 Jumbo Bucks $8,825,940 $5 1310 Bingo Blockbuster 1,039,347 $10 1319 Triple Red 7’s $8,113,350 $3 1314 Hidden Cash 1,001,029

FY2022 1st Quarter Product Review Page 4 Draw Games Total draw games sales for the first quarter reached $65,827,285, an increase of 34.9% over the same period last year.

Draw Games – Multi-State Games Powerball – Sales through the first quarter of the year totaled $27,839,114, an increase of 62.4% over the previous year. A jackpot was not hit in the first quarter of this fiscal year and reached $699.8 million before being hit in October. Mega Millions – Sales through the first quarter of the year totaled $16,227,938, an increase of 33.2% over the previous year. The highest jackpot reached in the first quarter of the fiscal year was $432 million in September. Draw Games – In-State Games Triple Twist™ – Sales through the first quarter of the year totaled $3,561,974, a decrease of 7.9% from the previous year. The highest jackpot reached in the first quarter of the fiscal year was $647,863 in July. The Pick™ – Sales through the first quarter of the year totaled $9,364,692, an increase of 33.3% over the previous year. A jackpot was not hit in the first quarter of this fiscal year; a jackpot of $6.6 million is estimated. Fantasy 5™ – Sales through the first quarter of the year totaled $4,633,729, an increase of 9.1% over the previous year. The highest jackpot reached in the first quarter of the fiscal year was $343,000 in August. Pick 3™ – Sales through the first quarter of the year totaled $4,199,838, a decrease of 3.5% from the previous year.

Fast Play Games Two new Fast Play games were launched in the first quarter of FY22, expanding the portfolio to 19; eight of which are progressive jackpot games. Sales for the first quarter totaled $13,319,782, an increase of 34.3% over FY21.

FY2022 1st Quarter Product Review Page 5 Since the introduction of Fast Play to the Arizona market in FY18, over 20 million Fast Play tickets have been sold, generating more than $96 million in total gross sales through September 30, 2021. The graph below illustrates Fast Play monthly gross sales for the first quarter of FY22. There was a 6% sales growth from July to August, and a 0.43% decrease in sales from August to September.

Month PowerballMega

Millions The Pick Fantasy 5 Pick 3 Triple TwistTotal

Draw Games Fast Play ScratchersCharitable Pull-Tabs

Non-Charitable Pull-Tabs

Total InstantGames Total

Market Share

July $6,706,316 $4,538,669 $2,819,543 $1,430,644 $1,402,187 $1,363,190 $18,260,549 $4,271,955 $86,488,811 $647,940 $430,920 $87,567,671 $110,100,175 34.0%August $8,036,701 $5,615,764 $3,073,197 $1,533,363 $1,461,874 $1,093,002 $20,813,901 $4,533,704 $80,371,017 $670,650 $388,800 $81,430,467 $106,778,072 33.0%September $13,096,097 $6,073,505 $3,471,952 $1,669,722 $1,335,777 $1,105,782 $26,752,835 $4,514,123 $74,728,577 $642,000 $349,620 $75,720,197 $106,987,155 33.0%

1st Quarter $27,839,114 $16,227,938 $9,364,692 $4,633,729 $4,199,838 $3,561,974 $65,827,285 $13,319,782 $241,588,405 $1,960,590 $1,169,340 $244,718,335 $323,865,402 100.0%

OctoberNovemberDecember2nd Quarter

JanuaryFebruaryMarch3rd Quarter

AprilMayJune4th Quarter

2022 $27,839,114 $16,227,938 $9,364,692 $4,633,729 $4,199,838 $3,561,974 $65,827,285 $13,319,782 $241,588,405 $1,960,590 $1,169,340 $244,718,335 $323,865,402Mkt Share 8.6% 5.0% 2.9% 1.4% 1.3% 1.1% 20.33% 4.11% 74.60% 0.61% 0.36% 75.56%

2021 $17,137,292 $12,183,879 $7,024,486 $4,246,317 $4,353,628 $3,865,814 $48,811,416 $9,916,369 $282,669,848 $1,693,542 $403,920 $284,767,310 $343,495,095% of Change 62.4% 33.2% 33.3% 9.1% -3.5% -7.9% 34.9% 34.3% -14.5% 15.8% 189.5% -14.1% -5.7%

ARIZONA LOTTERY

QUARTERLY SALES BY PRODUCT

Fiscal Year 2022 - July 2021 through September 2021

Attachment A

ARIZONA LOTTERYQUARTERLY SALES BY PRODUCT

Fiscal Year 2022 - July 2021 through September 2021

Attachment B

Multi-State Games13.6%

In-State Games6.7%

Scratchers74.6%

Pull-Tabs1.0%

Fast Play4.1%

In-State Games -The PickFantasy 5Pick 3Triple Twist

Multi-State Games -PowerballMega Millions

FY 2018 FY 2019 FY 2020 FY 2021 FY2022$1 $17,675,313 $17,327,856 $15,243,692 $14,836,696 $2,938,707$2 $76,286,420 $76,045,580 $74,204,632 $86,605,472 $16,487,632$3 $26,204,778 $30,416,967 $33,795,897 $40,770,039 $7,937,361$5 $144,423,905 $150,294,810 $163,624,105 $214,810,495 $44,533,015$10 $168,662,410 $173,763,390 $207,204,520 $271,076,850 $62,553,930$20 $176,364,760 $204,007,420 $217,273,740 $228,944,840 $43,377,860$25 $6,504,400 $8,628,650 $45,939,625 $16,858,650$30 $101,269,350 $91,917,900 $128,434,380 $206,849,550 $46,901,250Total $710,886,936 $750,278,323 $848,409,616 $1,109,833,567 $241,588,405

FY 2016 FY 2017 FY 2018 FY 2019 FY 2021$1 17,675,313 17,327,856 15,243,692 14,836,696 2,938,707$2 38,143,210 38,022,790 37,102,316 43,302,736 8,243,816$3 8,734,926 10,138,989 11,265,299 13,590,013 2,645,787$5 28,884,781 30,058,962 32,724,821 42,962,099 8,906,603

$10 16,866,241 17,376,339 20,720,452 27,107,685 6,255,393$20 8,818,238 10,200,371 10,863,687 11,447,242 2,168,893$25 1,837,585 674,346$30 3,063,930 4,281,146 6,894,985 1,563,375

Total 119,122,709 126,189,237 132,201,413 161,979,041 33,396,920Attachment C

Arizona Lottery5-Year Review by Price Point

0%

20%

40%

60%

80%

100%

FY 2018 FY 2019 FY 2020 FY 2021 FY2022

2.5% 2.3% 1.8% 1.3% 1.2%

10.7% 10.1% 8.7% 7.8% 6.8%

3.7% 4.1% 4.0% 3.7% 3.3%

20.3%20.0% 19.3% 19.4% 18.4%

23.7%

23.2% 24.4% 24.4% 25.9%

24.8%

27.2% 25.6%20.6% 18.0%

4.1% 7.0%

12.3% 15.1% 18.6% 19.4%

Based on Dollars Sold

$30

$25

$20

$10

$5

$3

$2

$1

0%

20%

40%

60%

80%

100%

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

14.8% 13.7% 11.5% 9.2% 8.8%

32.0% 30.1%28.1% 26.7% 24.7%

7.3% 8.0%8.5%

8.4% 7.9%

24.2% 23.8%24.8% 26.5% 26.7%

14.2% 13.8% 15.7% 16.7% 18.7%

7.4% 8.1% 8.2% 7.1% 6.5%1.1% 2.0%

2.4% 3.2% 4.3% 4.7%

Based on Tickets Sold

$30

$25

$20

$10

$5

$3

$2

$1

Date: October 8, 2021 To:

Gregg Edgar, Executive Director

From:

Raynie Hosto, Deputy Director Customer Service and Sales

Subject:

FY 2022 – First Quarter Sales Review

Vending Machine Sales (Chart E) Total sales through vending machines during the first quarter of FY22 were $147,758,021 a slight

increase over FY21 sales of $144,325,997. There are currently 1,732 machines installed at retail locations compared to 1,411 during the first quarter of FY21. FY22 sales from vending machines represented 46.1% of total sales, an increase from 42.3% in FY21.

The territory managers are working closely with the retailers to help increase sales by reducing out of stocks. The out-of-stock average for the first quarter of FY22 was 5.15% a decrease from 5.77% in the first quarter of FY21. The sales team will continue to focus on educating our

corporate partners on lost sales associated with high out of stocks in FY22.

Corporate Account Review (Chart F)

· Major retail chains represent 51.4% of all Draw and Scratchers lottery accounts.

Convenience stores represent 36.6% of total accounts, while chain food stores represent 14.8%.

· Major retail chains comprise 72.5% of the total market share with convenience stores

and food stores, accounting for 44.9% and 27.6%, respectively. · Fry's food stores remains the leader with a per store average sales of $309,146. QuikTrip

followed closely at $266,988 average sales per store. Safeway and Albertsons followed

with $217,197 and $200,075, respectively. · Circle K accounts for 19.6% of the market share with 604 stores followed by Fry’s at 12%

with 124 stores and QuikTrip at 10.38% with 124 stores.

Interoffice Memorandum

Business Classification Review (Charts G and H)

Chain and independent convenience stores account for 57.7% of total Lottery accounts and 61.9% of the market share in sales. Chain and independent grocery stores account for 16.2% and account for 28.4% of the market share. Instant Tab retailers account for 5.9% of total lottery

accounts and 1.0% of the sales market share. County Review (Charts I and J)

· The overall estimated per capita weekly sales of $3.31 for the first quarter of FY22 was

down when compared to the pandemic sales of $3.63 in FY21 but well above the FY20

per cap of $2.94. · Maricopa and Pima counties held a market share of 75.1% of total sales. Mohave, Pinal

and Yavapai counties combined market share was 14.4% and the remaining counties

represented 10.6% of sales. · Mohave County posted the highest weekly per capita sales at $6.75, followed by La Paz

County at $5.52 and Greenlee County at 5.49.

Arizona LotteryVending Machine - FY 2022

1st Quarter July Aug Sept July Aug Sept July Aug Sept July Aug Sept 1st Qtr July Aug Sept July Aug Sept 1st QtrPCT-HD 1456 1468 1476 7,705,344$ 8,271,938$ 9,827,800$ 40,369,947$ 38,090,034$ 36,265,705$ 48,075,291$ 46,361,972$ 46,361,972$ 140,799,235$ 33,019$ 31,582$ 31,411$ 5.13% 4.99% 5.10% 5.07%

PCT-LP 152 151 150 439,860$ 483,138$ 576,655$ 1,635,111$ 1,535,619$ 1,432,715$ 2,074,971$ 2,018,757$ 2,018,757$ 6,112,485$ 13,651$ 13,369$ 13,458$ 5.31% 5.72% 6.56% 5.86%

PCT-EX 102 103 106 279,505$ 283,398$ 340,327$ n/a n/a n/a 279,505$ 283,398$ 283,398$ 846,301$ 2,740$ 2,751$ 2,674$ n/a n/a n/a n/a

Total 1,710 1,722 1,732 8,424,709$ 9,038,474$ 10,744,782$ 42,005,058$ 39,625,653$ 37,698,420$ 50,429,767$ 48,664,127$ 48,664,127$ 147,758,021$ 29,491.09$ 28,260$ 85,311$ 5.15% 5.06% 5.23% 5.15%

% of Lottery Sales 37.4% 35.7% 34.4% 48.6% 49.3% 50.4% 46.3% 46.0% 45.9% 46.1%

2nd Quarter Oct Nov Dec Oct Nov Dec Oct Nov Dec Oct Nov Dec 2nd Qtr Oct Nov Dec Oct Nov Dec 2nd QtrPCT-HD -$ -$ -$ -$ #DIV/0! #DIV/0! #DIV/0!

PCT-LP -$ -$ -$ -$ #DIV/0! #DIV/0! #DIV/0!

PCT-EX -$ -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! n/a n/a n/a n/a

Total 0 0 0 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ #DIV/0! #DIV/0! #DIV/0!

% of Lottery Sales #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

3rd Quarter Jan Feb Mar Jan Feb Mar Jan Feb Mar Jan Feb Mar 3rd Qtr Jan Feb Mar Jan Feb Mar 3rd QtrPCT-HD -$ -$ -$ -$ #DIV/0! #DIV/0! #DIV/0!

PCT-LP -$ -$ -$ -$ #DIV/0! #DIV/0! #DIV/0!

PCT-EX -$ -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! n/a n/a n/a n/a

Total 0 0 0 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ #DIV/0! #DIV/0! #DIV/0!

% of Lottery Sales #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

4th Quarter Apr May June Apr May June Apr May June Apr May June 4th Qtr Apr May June Apr May June 4th QtrPCT-HD -$ -$ -$ -$ #DIV/0! #DIV/0! #DIV/0!

PCT-LP -$ -$ -$ -$ #DIV/0! #DIV/0! #DIV/0!

PCT-EX -$ -$ -$ -$ #DIV/0! #DIV/0! #DIV/0! n/a n/a n/a n/a

Total 0 0 0 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ #DIV/0! #DIV/0! #DIV/0!

% of Lottery Sales

Total Vending 8,424,709$ 9,038,474$ 10,744,782$ 42,005,058$ 39,625,653$ 37,698,420$ 50,429,767$ 48,664,127$ 48,664,127$ 147,758,021$

Total Fiscal Year 320,735,472$

% of Total Sales 46.1%

Chart E

# of Units Per Unit Average Out of Stock AverageDraw Sales Instant Sales Total Sales

ARIZONA LOTTERY

CORPORATE ACCOUNT REVIEW

Fiscal Year 2022

July 2021 through September 2021

Scratchers All Products Combined Commission

# of % of Market Per Store Market Per Store Market Per Store Earned

Accts Accts Sales Share Average Sales Share Average Sales Share Average To Date

4 Sons 9290/9814 22 0.7% 672,777$ 0.9% $30,581 1,697,606$ 0.7% $77,164 $2,370,383 0.7% $107,745 $154,075

7-Eleven 8706 55 1.6% 966,366$ 1.2% $17,570 5,224,498$ 2.2% $94,991 $6,190,864 1.9% $112,561 $402,406

Carioca 8821 38 1.1% 1,034,428$ 1.3% $27,222 2,593,493$ 1.1% $68,250 $3,627,921 1.1% $95,472 $235,815

Circle K 8037 604 18.1% 12,314,011$ 15.6% $20,387 50,710,117$ 21.0% $83,957 $63,024,128 19.6% $104,345 $4,096,568

Cobblestone 13 0.4% 357,184$ 0.5% $27,476 583,472$ 0.2% $44,882 $940,656 0.3% $72,358 $61,143

Fast Market 9958 24 0.7% 836,945$ 1.1% $34,873 2,996,620$ 1.2% $124,859 $3,833,565 1.2% $159,732 $249,182

Fry's Gas 8052 96 2.9% 1,248,608$ 1.6% $13,006 5,036,138$ 2.1% $52,460 $6,284,746 2.0% $65,466 $408,508

Good 2 Go 8024 15 0.4% 204,303$ 0.3% $13,620 887,193$ 0.4% $59,146 $1,091,496 0.3% $72,766 $70,947

Jackson's Food Stores 8021 11 0.3% 541,294$ 0.7% $49,209 922,022$ 0.4% $83,820 $1,463,316 0.5% $133,029 $95,116

Loves 9800 13 0.4% 266,874$ 0.3% $20,529 721,376$ 0.3% $55,490 $988,250 0.3% $76,019 $64,236

Maverik 9905 22 0.7% 688,689$ 0.9% $31,304 2,155,074$ 0.9% $97,958 $2,843,763 0.9% $129,262 $184,845

Pilot Travel Centers 9926 19 0.6% 333,907$ 0.4% $17,574 893,466$ 0.4% $47,025 $1,227,373 0.4% $64,599 $79,779

Quik Mart 8375 17 0.5% 505,709$ 0.6% $29,748 2,113,751$ 0.9% $124,338 $2,619,460 0.8% $154,086 $170,265

QuikTrip 9849 124 3.7% 8,407,510$ 10.6% $67,803 24,698,989$ 10.2% $199,185 $33,106,499 10.3% $266,988 $2,151,922

Safeway Gas 8128 32 1.0% 605,719$ 0.8% $18,929 1,679,470$ 0.7% $52,483 $2,285,189 0.7% $71,412 $148,537

Shay's 8938 21 0.6% 429,739$ 0.5% $20,464 1,758,430$ 0.7% $83,735 $2,188,169 0.7% $104,199 $142,231

Superpumper 8025 13 0.4% 549,404$ 0.7% $42,262 995,383$ 0.4% $76,568 $1,544,787 0.5% $118,830 $100,411

Terribles 8004 9 0.3% 546,867$ 0.7% $60,763 603,224$ 0.2% $67,025 $1,150,091 0.4% $127,788 $74,756

Speedway 9956 78 2.3% 1,336,552$ 1.7% $17,135 5,810,751$ 2.4% $74,497 $7,147,303 2.2% $91,632 $464,575

Convenience Total 1,226 36.6% $31,846,886 40.2% $25,976 $112,081,073 46.4% $91,420 $143,927,959 44.9% $117,396 $9,355,317

Albertsons 8027 30 0.9% 2,138,234$ 2.7% $71,274 3,864,002$ 1.6% $128,800 $6,002,236 1.9% $200,075 $390,145

Bashas' 8011 45 1.3% 2,387,216$ 3.0% $53,049 4,561,247$ 1.9% $101,361 $6,948,463 2.2% $154,410 $451,650

El Super 8030 6 0.2% 50,562$ 0.1% $8,427 379,900$ 0.2% $63,317 $430,462 0.1% $71,744 $27,980

Food City 47 1.4% 490,635$ 0.6% $10,439 2,848,863$ 1.2% $60,614 $3,339,498 1.0% $71,053 $217,067

Fry's 8052 124 3.7% 11,975,434$ 15.1% $96,576 26,358,686$ 10.9% $212,570 $38,334,120 12.0% $309,146 $2,491,718

Los Altos Ranch Market 8026 7 0.2% 69,980$ 0.1% $9,997 542,807$ 0.2% $77,544 $612,787 0.2% $87,541 $39,831

Safeway 8128 104 3.1% 8,083,781$ 10.2% $77,729 14,504,708$ 6.0% $139,468 $22,588,489 7.0% $217,197 $1,468,252

Walmart 8022 108 3.2% 2,236,003$ 2.8% $20,704 6,546,411$ 2.7% $60,615 $8,782,414 2.7% $81,319 $570,857

Costco 9955 17 0.5% -$ 0.0% $0 868,120$ 0.4% $51,066 $868,120 0.3% $51,066 $56,428

Winco 9962 7 0.2% 173,662$ 0.2% $24,809 420,057$ 0.2% $60,008 $593,719 0.2% $84,817 $38,592

Food Store Total 495 14.8% $27,605,507 34.9% $55,769 $60,894,801 25.2% $123,020 $88,500,308 27.6% $178,789 $5,752,520

Major Chains 1,721 51.4% $59,452,393 75.1% $34,545 $172,975,874 71.6% $100,509 $232,428,267 72.5% $135,054 $15,107,837

All Stores* 3346 $79,147,067 $23,654 $241,588,405 $72,202 $320,735,472 $95,856 $20,847,806 *Does not include Instant Tabs

Chart F

Total Draw Games

Chain #

ARIZONA LOTTERY

BUSINESS CODE REVIEW

Fiscal Year 2022

July 2021 through September 2021

Draw Games Scratchers Instant Tab Commission

Business # of % of Market Per Store Market Per Store Market Per Store FY2022 FY2021 % of Market Per Store Earned

Business Classification Code Accts Accts Sales Share Average Sales Share Average Sales Share Average Sales Sales change Share Average To Date

Full Product

Shopping Malls 01 2 0.1% 26,221 0.0% 13,111 17,943 0.0% 8,972 0.0% 0 44,164 15,647 182.3% 0.0% 22,082 2,871$

Smoke/Gift Shops 02 90 2.7% 473,591 0.6% 5,262 2,377,166 1.0% 26,413 0.0% 0 2,850,757 3,040,056 -6.2% 0.9% 31,675 185,299$

Chain Supermarkets 03 495 14.8% 27,855,779 35.2% 56,274 61,330,043 25.4% 123,899 0.0% 0 89,185,822 85,957,048 3.8% 27.5% 180,173 5,797,078$

Independent Supermarkets 04 46 1.4% 741,352 0.9% 16,116 2,119,584 0.9% 46,078 0.0% 0 2,860,936 2,671,189 7.1% 0.9% 62,194 185,961$

Chain Convenience Stores 05 1066 31.9% 29,229,794 36.9% 27,420 103,700,148 42.9% 97,280 0.0% 0 132,929,942 156,568,218 -15.1% 41.0% 124,700 8,640,446$

Independent Convenience 06 866 25.9% 13,836,429 17.5% 15,977 52,610,292 21.8% 60,751 7,560 0.0% 43,245 66,454,281 69,935,476 -5.0% 20.5% 76,737 4,319,528$

Liquor Stores 07 94 2.8% 498,531 0.6% 5,304 3,488,898 1.4% 37,116 0.0% 0 3,987,429 4,733,551 -15.8% 1.2% 42,419 259,183$

Drug Store/Pharmacies 08 3 0.1% 12,304 0.0% 4,101 18,663 0.0% 6,221 0.0% 0 30,967 47,710 -35.1% 0.0% 10,322 2,013$

independent Gas 09 21 0.6% 295,114 0.4% 14,053 1,035,344 0.4% 49,302 0.0% 0 1,330,458 1,728,274 -23.0% 0.4% 63,355 86,480$

Truck Service Centers 10 47 1.4% 902,164 1.1% 19,195 2,382,023 1.0% 50,681 0.0% 0 3,284,187 3,226,587 1.8% 1.0% 69,876 213,472$

Bars/Restaurants 11 95 2.8% 1,249,750 1.6% 13,155 1,935,767 0.8% 20,376 0.0% 0 3,185,517 1,639,579 94.3% 1.0% 33,532 207,059$

Spec Non-Grocery/Misc 12 105 3.1% 1,360,092 1.7% 12,953 1,647,795 0.7% 15,693 0.0% 0 3,007,887 2,408,048 24.9% 0.9% 28,647 195,513$

Chain Gas 13 129 3.9% 1,878,736 2.4% 14,564 6,819,742 2.8% 52,866 0.0% 0 8,698,478 8,505,259 2.3% 2.7% 67,430 565,401$

Bowling Centers 14 3 0.1% 15,735 0.0% 5,245 46,023 0.0% 15,341 0.0% 0 61,758 21,949 181.4% 0.0% 20,586 4,014$

Route Sales 19 78 2.3% 228,016 0.3% 919,781 0.4% 1,147,797 0 #DIV/0! 0.4% 0 74,607$

Quick Card 20 2 0.1% 155,664 0.2% 77,832 0 0.0% 0 0.0% 0 155,664 5,960 100.0% 0.0% 77,832 10,118$

ASL & Promotions 99 5 0.1% 387,795 0.5% 77,559 1,139,193 0.5% 227,839 14,040 0.4% 2,808 1,541,028 899,562 71.3% 0.5% 308,206 100,167$

Full Product Sub Total 3147 79,147,067 241,588,405 21,600 320,757,072 341,404,113

Instant Tab

Age-Controlled Instant Tab 15 51 1.5% 0 0.0% 0 0 0.0% 0 861,540 27.5% 16,893 861,540 241,920 256.1% 0.3% 16,893 56,000$

Charitable Instant Tab 17 121 3.6% 0 0.0% 0 0 0.0% 0 1,960,590 62.6% 16,203 1,960,590 1,679,760 16.7% 0.6% 16,203 1,597,175$

General Instant Tab 18 27 0.8% 0 0.0% 0 0 0.0% 0 286,200 9.1% 10,600 286,200 169,302 69.0% 0.1% 10,600 74,428$

Instant Tab Sub Total 199 5.9% 0 0 3,108,330 3,108,330 2,090,982

Total 3346 100% 79,147,067 100% 25,150 241,588,405 100% 76,768 3,129,930 100% 15,728 323,865,402 343,495,095 -5.7% 100% 96,792 22,576,813$

Summary Recap

Chain/Indpt Supermarkets 541 16.2% 28,597,131 36.1% 52,860 63,449,627 26.3% 117,282 0 0.0% 0 92,046,758 88,628,237 3.9% 28.4% 170,142 5,983,039$

Total Convenience Stores 1,932 57.7% 43,066,223 54.4% 22,291 156,310,440 64.7% 80,906 7,560 0.2% 13,894 199,376,663 228,231,968 -12.6% 61.6% 103,197 12,959,483$

Total Instant Tabs 199 5.9% 0 0.0% 0 0 0.0% 0 3,108,330 99.3% 15,620 3,108,330 #DIV/0! 1.0% 15,620 1,316,880$

Other Classifications 674 20.1% 7,483,713 9.5% 11,103 21,828,338 9.0% 32,386 14,040 0.4% 148,486 29,326,091 26,272,182 11.6% 9.1% 43,511 1,906,196$

Total All Classifications 3,346 100% 79,147,067 100% 25,150 241,588,405 100% 76,768 3,129,930 100% 15,728 323,865,402 343,495,095 -5.7% 100% 96,792 22,165,598$

Chart G

Combined Total Sales

ARIZONA LOTTERY

BUSINESS CODE REVIEW

Fiscal Year 2022

July 2021 through September 2021

Chart H

Age-Controlled Instant Tab

28%

Charitable Instant Tab63%

General Instant Tab9%

Instant Tab Sales

Chain/Indpt Supermarkets

36%

Total Convenience Stores

54%

Other Classifications10%

Draw Sales

Chain/Indpt Supermarkets

28.4% Total Convenience Stores61.6%

Total Instant Tabs1.0%

Other Classifications9.1%

Combined Total Sales

Chain/Indpt Supermarkets

26%

Total Convenience Stores65%

Other Classifications

9%

Scratchers Sales

ARIZONA LOTTERY

COUNTY SALES REVIEW

Fiscal Year 2022

July 2021 through September 2021

Draw Games Scratchers Instant Tabs All Products Combined 2022 Estimated# of % of Market Per Store Market Per Store Market Per Store FY2022 FY2021 % of Market Per Store Per Capita

County Code Accts Accts Sales Share Average Sales Share Average Sales Share Average Sales Sales Change Share Average Wkly Sales

Apache 1 18 0.5% 167,839 0.2% 9,324 511,566 0.2% 28,420 13,290 0.4% 6,267,104 692,695 738,756 -6.23% 0.2% 38,483 $0.74

Cochise 2 84 2.5% 1,564,181 2.0% 18,621 5,872,038 2.4% 69,905 64,260 2.1% 3,251,536 7,500,479 7,863,178 -4.61% 2.3% 89,291 $4.62

Coconino 3 101 3.0% 1,582,571 2.0% 15,669 4,620,385 1.9% 45,746 4,860 0.2% 243,057 6,207,816 5,898,293 5.25% 1.9% 61,464 $3.28

Gila 4 42 1.3% 632,627 0.8% 15,063 2,456,970 1.0% 58,499 11,580 0.4% 1,448,757 3,101,177 4,332,476 -28.42% 1.0% 73,838 $4.38

Graham 5 23 0.7% 250,248 0.3% 10,880 1,653,206 0.7% 71,879 8,760 0.3% 2,770,565 1,912,214 2,518,032 -24.06% 0.6% 83,140 $3.63

Greenlee 6 6 0.2% 93,693 0.1% 15,616 588,270 0.2% 98,045 2,760 0.1% 2,331,507 684,723 942,026 -27.31% 0.2% 114,121 $5.49

La Paz 15 39 1.2% 397,783 0.5% 10,200 1,070,859 0.4% 27,458 55,260 1.8% 10,995,108 1,523,902 2,177,836 -30.03% 0.5% 39,074 $5.52

Maricopa 7 1900 56.8% 47,868,284 60.5% 25,194 153,174,421 63.4% 80,618 1,598,790 51.1% 2,643,494 202,641,495 213,010,793 -4.87% 62.6% 106,653 $3.35

Mohave 8 195 5.8% 7,029,196 8.9% 36,047 11,588,862 4.8% 59,430 500,130 16.0% 5,631,344 19,118,188 18,746,450 1.98% 5.9% 98,042 $6.75

Navajo 9 60 1.8% 924,943 1.2% 15,416 3,312,429 1.4% 55,207 88,890 2.8% 7,606,288 4,326,262 5,179,255 -16.47% 1.3% 72,104 $2.96

Pima 10 441 13.2% 10,172,436 12.9% 23,067 29,985,452 12.4% 67,994 345,090 11.0% 2,684,987 40,502,978 44,227,134 -8.42% 12.5% 91,843 $2.92

Pinal 11 154 4.6% 3,510,714 4.4% 22,797 12,464,361 5.2% 80,937 238,290 7.6% 5,372,114 16,213,365 17,390,122 -6.77% 5.0% 105,282 $2.52

Santa Cruz 12 21 0.6% 525,683 0.7% 25,033 1,288,877 0.5% 61,375 0 0.0% 0 1,814,560 1,679,055 8.07% 0.6% 86,408 $2.99

Yavapai 13 142 4.2% 2,922,107 3.7% 20,578 8,195,283 3.4% 57,713 84,090 2.7% 2,277,629 11,201,480 11,443,592 -2.12% 3.5% 78,884 $3.56

Yuma 14 118 3.5% 1,349,098 1.7% 11,433 4,805,426 2.0% 40,724 113,880 3.6% 6,680,959 6,268,404 7,342,137 -14.62% 1.9% 53,122 $2.21

Virtual 26 2 0.1% 155,664 0.2% 77,832 0 0.0% 0 0 0.0% 0 155,664 5,960 2511.81% 0.0% 77,832 #DIV/0!

Total 3346 100% 79,147,067 100% 23,654 241,588,405 100% 72,202 3,129,930 100% 3,129,930 323,865,402 343,495,095 -5.71% 100% 96,792 $3.31

Summary Recap

Maricopa and

Pima Counties 2341 70.0% 58,040,720 73.3% 24,793 183,159,873 75.8% 78,240 1,943,880 62.1% 2,650,767 243,144,473 75.1% 103,864

Mohave, Pinal

and Yavapai 491 14.7% 13,462,017 17.0% 27,418 32,248,506 13.3% 65,679 822,510 26.3% 4,835,773 46,533,033 14.4% 94,772

All Other

Counties 514 15.4% 7,644,330 9.7% 14,872 26,180,026 10.8% 50,934 363,540 11.6% 3,763,983 34,187,896 10.6% 66,513

Chart I

ARIZONA LOTTERY

COUNTY SALES REVIEW

Chart J

July 2021 through September 2021

Fiscal Year 2022

Maricopa63%

Mohave6%

Pima12%

Pinal5%

Yavapai3%

All Other11%

Combined Sales

Maricopa60%

Mohave9%

Pima13%

Pinal4%

Yavapai4%

All Other10%

Draw Game Sales

Maricopa63%

Mohave5%

Pima13%

Pinal5%

Yavapai3% All Other

11%Scratchers Sales

Maricopa51%

Mohave16%

Pima11%

Pinal7%

Yavapai3%

All Other12%Instant Tab Sales

$0.74

$4.62

$3.28

$4.38

$3.63

$5.49 $5.52

$3.35

$6.75

$2.96 $2.92$2.52

$2.99

$3.56

$2.21

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

Apache Cochise Coconino Gila Graham Greenlee La Paz Maricopa Mohave Navajo Pima Pinal Santa Cruz Yavapai Yuma

2022 Estimated Per Capita Wkly Sales

11

New Business Item #1 Instant Scratch Game Profiles

Report to Arizona Lottery Commission October 22, 2021

________________________________________________________________________ This report has been provided to the Lottery Commission regarding game profiles planned for Arizona Lottery instant scratch games. The Commission is requested to approve these game profiles. After Commission approval, staff will commence with plans for printing, distribution, and sales of these games. NEW GAME PROFILES Attached for the Lottery Commission's action is new instant scratch game profiles: Cash King #1357, Triple Bonus Crossword #1358, and 500X #1360. Cash King#1357. This $10 game has a top prize of $100,000. This game will be printed at a quantity of approximately 2.0 million tickets.

Triple Bonus Crossword #1358. This $25 game has a top prize of $500,000 and will be printed at a quantity of approximately 2.0 million tickets.

500X #1360. This $50 game has a top prize of $5,000,000 (30-year annuity) or a one-time cash payment of $2,500,000. This game will be printed at a quantity of approximately 8.0 million tickets.

Attachments (Commissioners only)

12

New Business Item #2 Instant Tab Game Profiles

Report to Arizona Lottery Commission October 22, 2021

________________________________________________________________________ This report has been provided to the Lottery Commission regarding game profiles planned for Arizona Lottery instant tab games. The Commission is requested to approve these game profiles. After Commission approval, staff will commence with plans for printing and distribution of these games. NEW GAME PROFILES Attached for the Lottery Commission's action are new instant tab game profiles: Big Money Bags #161, Patriot Poker #162, Hey Batter Batter #1065, and Touchdown Drive #1066. Big Money Bags #161. This $2.00 game has a top prize of $400. Patriot Poker #162. This $2.00 game has a top prize of $400. Hey Batter Batter #1065. This $1.00 game has a top prize of $250. Touchdown Drive #1066. This $1.00 game has a top prize of $250. Attachments (Commissioners only)

13

New Business Item #3 $500 GRAND Giveaway Second Chance Promotion Profile #112

Report to Arizona Lottery Commission October 22, 2021

_____________________________________________________________________ This report has been provided to the Lottery Commission regarding the $500 GRAND Giveaway Second Chance Promotion Profile. The Commission is requested to approve this Promotion Profile. NEW PROMOTION PROFILE Attached for the Lottery Commission's action is new Promotion Profile: $500 GRAND Giveaway Profile #112. $500 GRAND Giveaway Promotion Profile #112 Starting January 10, 2022 players will be able to enter winning and non-winning tickets from designated instant scratch games and a Fast Play game for a chance to win cash prizes. Attachments (Commissioners only)