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1. Supporting Arizona Since 1981 Jeff Hatch-Miller Executive Director January 2011.

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Presentation on theme: "1. Supporting Arizona Since 1981 Jeff Hatch-Miller Executive Director January 2011."— Presentation transcript:

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2 Supporting Arizona Since 1981 Jeff Hatch-Miller Executive Director January 2011

3 3 “To support Arizona programs for the public benefit by maximizing revenue in a responsible manner.” The Arizona Lottery Mission

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5 5 Lottery Sales Fall New York January 7, 2010 Bloomberg William Selway and Timothy R. Homan writing for Bloomberg News, report income from lottery-ticket sales fell to $52.3 billion, a 0.9 percent drop from the previous year Nationwide: It Was A Tough Year

6 6 NJ casinos end 4th straight bad year Jan. 10, 2011, 8:33 p.m. EST Associated Press ATLANTIC CITY, N.J. (AP) — In just four years, the nation's second-largest gambling market has lost nearly a third of its business. Year-end figures released Monday show Atlantic City's casinos took in $3.6 billion in 2010, down from $5.2 billion in 2006, a decline of nearly 31 percent. The yearly decline was 9.6 percent, marking the fourth year in a row that New Jersey's casinos took in less than the year before.

7 7 Nationwide: It Was A Tough Year Indian casino revenue declining The Business Journal Monday, December 13, 2010 Indian casino gaming re venue declined is expected to drop further this year according to PricewaterhouseCoopers. Total tribal casino revenue in the United States is expected to decline by 1.9 percent in 2010 to $26 billion the PwC "Playing to win" report released Monday reported.

8 8 Nationwide: It Was A Tough Year Arizona Lottery has record-breaking sales in down economy ABC15 Television August 31, 2010 PHOENIX – The Arizona Lottery ranked number one in the country for an increase in sales over the 2010 fiscal year. According to LeFleurs analysis of North American lotteries, Arizona ended the year with $551 million in sales, that’s a 13.8 percent jump from last year.

9 9 The Lottery Is A Business

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11 11 Increase Sales and Revenue  Strategic Business Planning  Increased Per Capita Sales  Expanded Retailer Base  Maximized Retailer Performance  More Attractive, “Audience Tested” Games  Right Sized Prize Payouts  Focused Advertising Reduce Cost Of Operations  Heighten Productivity  Hire Strategically To Increase Revenue  Exploit Outsourcing Options  Tighten Game Cost Controls  Negotiate Lower Services/Materials Prices  Limit Consultant Use  Maintain Travel/Conference Restrictions Business Maximization Strategies

12 12 $100 Million Cash Spectacular delivered the goods. Two years later, it continues to bring in more than $1 million a week, providing needed revenue and helping propel Arizona to the No. 2 position in the U.S. for percentage growth of transferable revenue. “It was a huge financial commitment for us and the thought of failure was horrific.” Karen Emery, 2009

13 13 Right Sized Prize Payouts = Maximized Sales

14 14 Instant “Scratcher” Ticket Life Cycle Week in Market New Games Are Required Every 13 to 19 Weeks

15 15 With Without

16 16 Focused Advertising With Without

17 17 Lottery Retailers 2783

18 Sales Growth Arizona Ranked #2 in North America for FY2009

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20 20 Flow Of Lottery Funds

21 21 FY11 Beneficiary Distribution

22 FY10 Sales vs. FY11 Sales Total Sales Comparison Graph FY11:$269,160,417 FY10:$256,584,711 % Difference4.9%

23 Trailing 12-Month Sales $580

24 24 FY10 Actual and FY11 Projected Beneficiary Transfers Projected 5% Increase

25 Charity “Pull Tab” Games On Sale Now First sales -- January 5, 2011 American Games shipping orders 16 licensed charitable organizations

26 26 The ArizoAdministration issued bonds in the amount of $450 million in 2010. Principle and interest payments will be made using Arizona Lottery funds. The time to maturity is 20 years. Additional bonding may be forthcoming as conditions require. na Lottery and Department of Securitization

27 27 The Arizona Lottery functions within the limitations imposed by Arizona’s negotiated gaming compacts with the Tribes. The Lottery will continue to offer new and interesting products that match the qualities being requested by our players. Our prizes and jackpots are the largest in Arizona. We will work with other states to offer games with even higher jackpots, won more often by more people. We do not expect to engage in electronic or Internet gaming. The Lottery’s Long-Term Vision

28 28 In Summary Jeff Hatch-Miller Executive Director The Arizona Lottery

29 29 Your Comments and Questions Jeff Hatch-Miller Executive Director The Arizona Lottery

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