1. supporting arizona since 1981 jeff hatch-miller executive director january 2011
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Supporting Arizona Since 1981
Jeff Hatch-MillerExecutive Director
January 2011
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“To support Arizona programs for the public benefit by maximizing revenue
in a responsible manner.”
The Arizona Lottery Mission
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Lottery Sales FallNew 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
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Nationwide: It Was A Tough Year
NJ casinos end 4th straight bad yearJan. 10, 2011, 8:33 p.m. ESTAssociated 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.
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Nationwide: It Was A Tough Year
Indian casino revenue declining
The Business Journal Monday, December 13, 2010
Indian casino gaming revenue 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.
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Nationwide: It Was A Tough Year
Arizona Lottery has record-breaking sales in down economyABC15 TelevisionAugust 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.
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The Lottery Is A Business
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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
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$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
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Right Sized Prize Payouts = Maximized Sales
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$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
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Instant “Scratcher” Ticket Life Cycle
Week in Market
New Games Are Required Every 13 to 19 Weeks
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With
Without
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Focused Advertising
With
Without
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Lottery Retailers
2783
Sales Growth
Arizona Ranked #2 in North America for
FY2009
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Flow Of Lottery Funds
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FY11 Beneficiary Distribution
FY10 Sales vs. FY11 SalesTotal Sales Comparison Graph
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
FY 2010 FY 2011
FY11: $269,160,417
FY10: $256,584,711
% Difference 4.9%
Trailing 12-Month Sales40
178
4020
9
4023
7
4026
8
4029
8
4029
9
4033
0
4036
0
4039
1
4042
2
4045
2
4048
3
4051
3
4054
4
4057
5
4060
3
4063
4
4066
4
4069
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500
550
600
650
700
Actual Linear (Actual)Goal
Twelve Months Ending
(Mil
lio
ns)
$580
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FY10 Actual and FY11 Projected Beneficiary Transfers
Projected 5% Increase
Charity “Pull Tab” Games On Sale NowFirst sales -- January 5, 2011
American Games shipping orders
16 licensed charitable organizations
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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
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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
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