Lottery Commission Presentation (Oct 2012) SHOW · SALES HISTORY 229.5 885.6 1078.2 1293.1 1421.3 1461.1 1605.8 0 200 400 600 800 1000 1200 1400 1600 1800 2006 2007 2008 2009 2010

OUR MISSION

§18C-162

“The Commission shall allocate revenues to the North Carolina State Lottery Fund in order to increase and maximize the available revenues for education purposes”

SALES HISTORY

229.5

885.6

1078.2

1293.1

1421.31461.1

1605.8

0

200

400

600

800

1000

1200

1400

1600

1800

2006 2007 2008 2009 2010 2011 2012

Sales (in Millions)

TRANSFER HISTORY

50

325.4350

410.9 419.5

446.9 456.7

0

50

100

150

200

250

300

350

400

450

500

2006 2007 2008 2009 2010 2011 2012

Transfers (in Millions)

FY12 DISTRIBUTION OF REVENUE

60% Prizes to Winners

7% Retail Commissions

{4% Administration

1.7% Gaming System Services1.0% Salaries, Wages & Benefits0.9% Advertising0.7% Other Administrative

29% Earnings for Education

60% Instant

10% Powerball6% Carolina Pick 4

15% Carolina Pick 3

5% Mega Millions4% Carolina Cash 5Instant60%

Pick 315%

Pick 46%

Powerball10%

Mega Millions

5%

Cash 54%

FY12 TICKET SALES BY CATEGORY

CHANGES TO DISTRIBUTION FORMULAOF LOTTERY FUNDS TO PROGRAMS

50% Teachers’ salaries in grades K-3

14.3% Prekindergarten programs6.9% Need-based college scholarships

22.7% School construction

3.7% Local school systems2.4% UNC need-based financial aid

50% Teachers’ salaries & prekindergarten

10% Need-based college scholarships40% School construction

Original Program Distribution Formula

FY13 Distribution Formula

The Education Lottery has committed itself to following the industry’s best practices in the area of responsible gaming as outlined by the World

Lottery Association. Currently, it is one of only six U.S. lotteries to obtain Level

2 or above in the WLA’s Responsible Gaming Framework.

NCEL AND RESPONSIBLE GAMING

WHERE U.S. LOTTERIES STAND

Level 3: California, KentuckyLevel 2: Connecticut, Illinois, New York, North Carolina

QUESTIONS

Powerball Billboard:

“ESTIMATED ANNUITY”

“The jackpot prize is estimated and will be divided equally among all winning tickets for that prize level. The jackpot can be paid out either as a lump sum payment or an annuity payout over 29 years (or 30 payments).”

Powerball How‐to‐Play Brochure:

Powerball Page on NCEL Website:

“The jackpot for Saturday’s Powerball drawing is an estimated $60 million if taken as an annuity or $38.8 million if taken as a lump sum.”

NCEL Media Release: