Lottery in Social Establishments Jim Breslo President April

Lottery in Social Establishments Jim Breslo President April 7, 2016

SOCIAL ESTABLISHMENTS • Attract variety of demographics • Age-regulated • Customers o Seeking entertainment o Have disposable income • Not going away

LOTTERY EXPERIENCE IN SOCIAL ESTABLISHMENTS

KENO

KENO • Deployed since 1990 • First state to deploy: Michigan • In 2015: o 16 states with keno in social establishments o Best performing Keno state: Massachusetts 1, 416 retailers generated $850 m in gross sales; Over $600, 000 per retailer o States range from grossing $5 m/year to $850 m/year in sales

INSTANT TICKETS NOT AS SUCCESSFUL • Leave a mess • Low volume, low return • Burdens bartender • Lottery terminal required

EXISTING ITVMs HELP BUT… • Large physical footprint • Still low volume, low return • Still leaves a mess

ITVM EVOLUTION • • Touchscreen monitor Dispenses pre-printed tickets Ability to scan & see winner Ability to redeem winners BUT… • • • Still large physical footprint Still leaves a mess Still low volume

LT-3 • Modern ITVM dispenses pre-printed tickets • Scanner reads ticket barcode; result displayed in an entertaining fashion • Sound animation add entertainment to every ticket • Variety of configurations available

LT-3 vs LATEST TRADITIONAL ITVM ü Touchscreen monitor ü Dispenses pre-printed tickets ü Ability to scan and see winner ü Ability to redeem winners ü Eliminates mess ü Small physical footprint ü Adds entertainment value ü Increases volume by more than 10 x ü ADA aid

LT-3 COMPLEMENTS KENO

MISSOURI • All LT-3 retailers have Keno • Addition of LT-3 has tripled revenue at those retailers outperformed Keno by 83% • LT-3 has • No measurable impact on Keno sales

MARYLAND • 17% of LT-3 retailers had Keno • Those retailers experienced a 13% increase in Keno sales • 30% of LT-3 retailers now have Keno • LT-3 has outperformed Keno by 80%

MICHIGAN • All locations have Keno • LT-3 outperforms state average Keno sales by 75% • No measurable impact to Keno

LT-3 COMPLEMENTS KENO • LT-3 can increase number of keno retailers • Keno could be displayed • Keno tickets could be sold