The Texas Lottery — It's Good for Business!

For More Information:

1-800-37 LOTTO (1-800-375-6886)

RetailerWebHelp@lottery.state.tx.us

www.txlottery.org

P.O. Box 16630, Austin, TX 78761-6630

The Texas Lottery —

It’s Good for Business!

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Greetings from the Texas Lottery

Since our rst record-breaking day on May 29, 1992, the Texas Lottery has become one of the biggest and best state

lotteries. You have an opportunity to take part in this highly successful enterprise as a Texas Lottery retailer.

This information packet and application for a Texas Lottery Ticket Sales License may be your ticket to increased

customer trafc, greater sales volume of existing products and commissions for selling Texas Lottery products in

your store.

Please take time to look over the information packet. If you have any questions, please call us toll-free at

1-800-37-LOTTO (375-6886) and ask for Retailer Services. You also may visit the ofcial Texas Lottery website

at www.txlottery.org for the latest Texas Lottery news and information.

The Texas Lottery has been good for Texas, generating over $17 billion for the state of Texas, and it could be very

good for your business. We look forward to assisting you in providing the Games of Texas to your customers.

Sincerely,

Gary Grief

Executive Director

Welcome

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Retailer Benets

H High rate of return per square inch of counter

and oor space

H Potential for increased customer trafc,

inside sales and overall prots

H Additional revenue through 5% commission

on every ticket sold

H Merchandising and promotional assistance

and effective point-of-sale (POS) materials

H Low overhead and assistance with inventory

control and customization

H State-of-the-art computerized equipment

H Internet access to nancial and inventory reports

via Retailer Services Center

H Opportunity to join the team of more than 16,500

Texas businesses who have helped contribute more

than $12 billion to Texas education through the

Texas Lottery’s contributions to the Foundation

School Fund

H As a Texas Lottery retailer you join the public

assistance networks of the Amber Alert, Silver Alert and Blue Alert systems for locating missing and abducted

children, elderly citizens as well as persons involved in assaulting a Texas police ofcer.

H Eligible to receive generous selling bonuses.

See chart below.

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Texas Lottery ticket purchases contribute to the Foundation School Fund – helping to pay for public education in

Texas! As of February 2010, the Texas Lottery has contributed more than $12 billion to the Foundation School Fund,

which is administered by the Texas Education Agency.

Where e Money Goes

That $12 billion is the biggest part of the more than $17 billion in revenue for Texas that the Texas Lottery has

generated since the rst ticket was sold in May 1992. Lottery revenues have gone to the Foundation School Fund since

September 1, 1997, as directed by the State Legislature. Prior to that date, they were allocated to the General Revenue

Fund. Unclaimed lottery prize funds revert to the state to be appropriated for health care, medical education and other

programs authorized by the state legislature.

Texas Lottery retailers have earned more than $2.8 billion in sales commissions as of January 31, 2009 and more

than $75 million in bonuses.

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The Texas Lottery accounting week runs from 12:30 a.m. Sunday (daily system sign-on) to midnight Saturday

(daily system sign-off). All retailer transactions including sales and cashes for the week determine the electronic funds

transfer (EFT) amount for the upcoming Wednesday – three (3) days later. The EFT may be a credit or withdrawal to a

retailer’s account.

A weekly invoice is posted to the system on Sunday at midnight. The information

on the weekly invoice remains the same all week and is available for viewing and

printing anytime after the retailer signs onto the system after midnight on Sunday.

The previous four (4) weekly invoices are available from the terminal. The previous

eight (8) weeks are available through the web-based Retailer Services Center.

How does a retailer pay for packs of scratch-os?

There are four (4) ways a pack of instant tickets can be settled (charged)

to a retailer’s account.

1. Time – 45 calendar days from the date a pack is activated, the pack

will automatically settle to the retailer’s current accounting week and

be included in the weekly invoice.

2. Manually – After a pack is activated the retailer can choose to settle

the pack manually and it will be charged to the current accounting week.

The charge will be reected in the weekly invoice available the upcoming

Sunday. This is the only method over which a retailer has direct control.

3. Validation – When approximately 70% of the low-tier winning tickets

($24.99 or less) have been validated (paid out) the pack will settle. The

charge will be reected in the weekly invoice available the upcoming Sunday.

4. Game Closing – Any active or conrmed tickets in retailer possession after the ofcial End Date for a game will

be charged to the retailer. The End of Game Dates are established by and notices provided by the Texas Lottery.

Primary Retailer Responsibilities

H Attend retailer training session

H Comply with the Americans with Disabilities Act (ADA)

H Maintain current knowledge of Texas Lottery products and policies

H Sell a minimum of two (2) instant games. However, offering a variety of games increases sales.

H Pay winning tickets up to $599. Prizes of $600 or more are paid by a Texas Lottery claim center.

e Business of Selling

TEXAS LOTTERY

THU MAR04 2010

09:26:30 CT

PRINTED AT RETAILER #000000

------------------------

INVOICE

SAT FEB 27 2010

RET 000000

SUMMARY

231 MEGA SALES 500.00

74 PWRB SALES 121.00

261 LOTO SALES 436.00

105 PCK3 SALES 215.00

10 DLY4 SALES 22.50

59 CSH5 SALES 134.00

57 TX2S SALES 112.00

0 PCK3 CANCEL 0.00

0 DLY4 CANCEL 0.00

797 NET ONLINE 1541.00

50 ONLIN CASH 2740.00-

694 INST CASH 7824.00-

41 SETTLEMENTS 12450.00

0 MEGA CREDIT 0.00

0 PWRB CREDIT 0.00

0 LOTO CREDIT 0.00

0 PCK3 CREDIT 13.00

0 DLY4 CREDIT 0.00

0 CSH5 CREDIT 0.00

0 TX2S CREDIT 0.00

0 INST CREDIT 0.00

COMMISSIONS 699.56-

ADJUSTMENTS 0.00

TOTAL DUE 2714.44

EFT AMOUNT 2714.44

SWEEP DATE WED MAR 03 2010

** VOID - NOT FOR SALE **

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For assistance in completing an application or to obtain more information on how to become a Texas Lottery retailer,

contact your nearest Texas Lottery eld ofce claim center, GTECH district sales ofce or call Texas Lottery Retailer

Services at 1-800-37 LOTTO (1-800-375-6886).

An application is included in this packet or you may visit the Texas Lottery website at txlottery.org/retailerforms to

download the ‘Application for Texas Lottery Ticket Sales License’ and additional information.

How To Apply

Abilene

209 S. Danville, Suite C-103

79605

325-698-3926

Amarillo

7120 IH-40 West, Suite 110

Park West Ofce Centre

79106

806-353-0478

Austin

611 E. 6th St.

78701

512-344-5252

Beaumont

6444 Concord Rd.

77708

409-347-0734

Corpus Christi

4639 Corona, Suite 19

78411

361-853-4793

Dallas

1555 W. Mockingbird Lane

Oakbrook Plaza, Suite 203

75235

214-905-4912

El Paso

401 E. Franklin Ave., Suite 150

79901

915-834-4920

Fort Worth

4040 Fossil Creek Blvd., Suite 102

76137

817-232-9478

Houston

1919 N. Loop W., Suite 100

77008

713-869-6451

Laredo

1202 Del Mar Blvd., Suite 4

78045

956-727-8750

Lubbock

6202 Iola Ave., Suite 900A

79424

806-783-0602

McAllen

4501 West Business 83

78501

956-630-2278

Odessa

4682 E. University, Suite 100

79762

432-550-6340

San Antonio

9514 Console, Suite 111

78229

210-593-0210

Tyler

3800 Paluxy Dr., Suite 330

75703

903-509-9008

Victoria

2601 Azalea, Suite 16

77901

361-573-4185

Texas Lottery Claim Centers

Abilene

2238 Industrial Blvd.

325-695-0287

800-460-2263

Austin

8520 Tuscany Way

Building 6, Suite 100-B

512-908-4300

800-460-9922

El Paso

5 Buttereld Trail, Suite H

915-774-0412

800-460-5727

Houston

7425 Pinemont Drive, Suite 400

713-699-0732

800-460-4687

Irving

2700 W. Story, Suite 300

972-255-5527

800-460-3374

Lubbock

5833 W. 50th St., Suite 1

806-791-0291

800-460-5763

McAllen

6200 S. 35th, Suite C

956-682-9401

800-460-6225

San Antonio

3453 N. I-35

Southwest Bldg. C, Suite 315

210-225-2130

800-460-7262

Tyler

1814 Capitol Dr., Suite 100

903-534-9821

800-460-7821

Victoria

103 E. Mockingbird, Suite A

361-578-6641

800-460-6641

GTECH Sales Oces

Lubbock

800-460-5763

Abilene

800-460-2263

Irving

800-460-3374

Tyler

800-460-7821

Austin

800-460-2878

Houston

800-460-4687

Victoria

800-460-6641

McAllen

800-460-6225

San Antonio

800-460-7262

El Paso

800-460-5727

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Retailer Services Center

View your Texas Lottery business information from

home, ofce or on the road at txlottery.org/rsc.

The Retailer Services Center (RSC) links retailers to their

Texas Lottery business information through a secure entry

point via the Internet.

Retailers with multiple Texas Lottery locations will be able

to monitor each store’s activity. Retailers can use the RSC

to view and print reports with 8-week history on:

• Sales, Credits and Sweep Amounts

• Pack Activations and Settlements

• Ticket Validation Detail

• Scratch-Off Inventory

• and more!

The RSC also provides a FAQ section, news about upcoming games and retailer

promotions, and contact information for Texas Lottery and GTECH

Hotline staff.

Owners or ofcers can enroll in the free service by using their six-digit Texas

Lottery I.D. and can then establish a username and password for their account.

Once an account is set up, retailers may modify USER INFORMATION

by adding names of employees needing access, change STORE DETAILS

such as name or telephone number, and gain access to an extensive array

of FINANCIAL REPORTS. Retailers can also UPDATE BANK ACCOUNT

information and RENEW their LICENSE online.

Customer Service available Mon-Fri, 7 am to 5:30 pm. Email [email protected].

SAMPLE

REPORTS

SAMPLE

REPORTS

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As a licensed Texas Lottery retailer, you can benet

from an extensive array of hands-on retailer support

including:

H Media advertising

H Frequent point-of-sale (POS) pieces

H Sales incentives and promotions

H Regular visits by your lottery sales representative (LSR)

H Texas Lottery Customer Service Hotline

1-800-37 LOTTO (1-800-375-6886) is available

Monday - Friday, 7 a.m. - to 5:30 p.m. CST for

lottery issues other than equipment or instant

ticket orders.

H Online access to your lottery business information,

see the “Retailer Services Center” page for details.

H The lottery operator (GTECH) hotline

1-800-458-0884 is available 7 days a week, 24 hours

for technical support or ordering instant tickets.

H Ongoing retailer training

H Convenient and secure ticket dispensers

H Regular communication through your LSR,

retailer newsletter, surveys, retailer meetings

and terminal messages

Retailer Support

** This Power Play promoti on is available fro m May 1 - 29, 2010, or until the 10X multiplier is draw n, whichever is later. Du ring this promoti on, the Power Play odds are 2X 1:4, 3X 1:4, 4X 1:4, 5X 1:5.33 and the 10X 1:16.

Powerball overall odds a re 1:35. The Texas Lottery reser ves the right to dis continue this pro motion at any time. Mu st be 18 years of age or older t o purchase a Texas Lotte ry ticket.

Limited Time

May 1 - 29

is drawn.

or until the

$2 million

win up to

with

* Power Play does not apply to the Powerball Grand/Jackpot prize.

buy a powerball

ticket and

Add

Power Play

for a chance

multiply

your prize*

up to times!

Without Power Play With Power Play

Match

Prize

If Power Play number

drawn is

10X :

5 + PB

GR AND/J ACKP OT

5 $200,000 $2,000,000

4 + PB $10,000 $100,000

4 $100 $1,000

3 + PB $100 $1,000

3 $7 $70

2 + PB $7 $ 70

1 + PB $4 $40

PB $3 $30

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3/30/10 8:51 AM

aDd

Power Play

and your

Powerball

Prize

could be

multiplied

times!

*Power Play does not apply t o the Powerball gra nd/jackpot pr ize. **This Power Play pro motion is avail able from May 1 - 29, 2010 or until t he 10X multiplier i s drawn, whichev er is later.

During this pr omotion the Power Pl ay odds are 2X 1:4, 3X 1:4, 4X 1:4, 5X 1:5.33 and the 10X 1:16. Powerball overal l odds are 1:35. The Texas Lott ery reserv es the right to di scontinue th is promotion at a ny time.

Must be 18 years of age o r older to purch ase a Texas Lotter y ticket. Copyr ight © 2010 Texas Lottery C ommission. Al l rights rese rved. The Texas Lot tery suppo rts Texas educat ion. PLAY RESP ONSIBLY.

Limited Time –

May 1 - 29

Only one (1) FREE Cash Five Quick Pick will be generated for each Cash Five purchase of $5 or more. The Texas Lottery

reserves the right to discontinue this promotion at any time. Must be

GET A

FREE $1 Powerball

QUICK PICK

WHEN YOU

PURCHASE

$5 OR MORE

POWERBALL ON ONE TICKET!

ADD

power play

for $1 MORE!

Powerball overall odds are 1:35. Only one (1) FREE Powerball Quick Pick will be generated for eac h Powerball purchase of $5 or more. The Texas Lottery

reserves the right to discontinue this promotion at any time.

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e Games

Scratch-Os (Instant Games)

When players know instantly if they are

a winner, they often bring immediate

excitement to a location.

That’s the fun of selling scratch-offs –

preprinted tickets with numbers or

symbols hidden under a latex covering.

As with all Texas Lottery games,

retailers earn 5% on every ticket sold.

On-Line Games

Lotto Texas

, Mega Millions

Powerball

, Texas Two Step

Pick 3

™

, Daily 4

™

and Cash

Five

are drawing games in

which tickets are generated from

a terminal connected to (on-line

with) the Texas Lottery operator’s

central computer system.

Televised drawings are held daily

Monday through Saturday – twice

daily for Pick 3 and Daily 4 –

to determine a set of winning

numbers for each day’s games.

Loyal “numbers games” players and

rolling jackpots help build customer

trafc at retail locations.

SCRATCH-OFF GAMES

Ticket Cost Pack Size Pack Value Commission

$1 150 tkts $150 $7.50

$2 125 tkts $250 $12.50

$3 125 tkts $375 $18.75

$5 75 tkts $375 $18.75

$7 75 tkts $525 $26.25

$10 50 tkts $500 $25.00

$20 25 tkts $500 $25.00

$50 20 tkts $1000 $50.00

Ticket numbering sequence begins with “001” for each pack.

Winning experiences with scratch-offs

or on-line games benet retailers

as well as their customers!

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Q: Why would I want to become a Texas Lottery retailer?

A: To increase prots with a product that can expand customer trafc and create a fun atmosphere.

Q: How much does a Texas Lottery license cost?

A: The application fee is $125 for the rst location and $50 for each additional subordinate. Contact Retailer Services

at 800-375-6886 to conrm your particular business fee.

Q: How long does it take to become a licensed Texas Lottery retailer?

A: Application processing takes approximately 4 weeks followed by required classroom training prior to equipment

being installed.

Q: How much can I make selling Texas Lottery?

A: Retailers receive a 5% commission on every Texas Lottery ticket sold. Retailers also have the opportunity to

earn additional bonuses. See the “Retailer Benets” page for details.

Q: Can I pay all winning tickets?

A: Retailers can pay winning tickets up to $599 and are encouraged to do so. Cashing tickets can turn winnings

into additional in-store purchases and build a larger, loyal customer base.

Q: Can players pay for Texas Lottery tickets with credit cards?

A: Texas Lottery tickets may not be purchased with a credit card. Debit cards are accepted.

Q: Can I play the Texas Lottery?

A: Yes! Retailers and their employees who are 18 years of age or older can purchase Texas Lottery tickets.

Q: When do I pay for tickets?

A: Retailers are not required to pay up front for ticket inventory. After you set up an Electronic Funds Transfer (EFT)

account, we will automatically debit or credit your account each week. See “The Business of Selling” for details.

Q: Where do I apply for a Texas Lottery license?

A: An application is included in this packet. You also may contact any Texas Lottery claim center or district

sales ofce. Addresses and phone numbers are listed on the “How To Apply” page. The ‘License to Sell Texas

Lottery Tickets’ application and additional forms also are available at www.txlottery.org or call 800-375-6886.

Q: Are there any equipment costs?

A: You are asked only to provide an appropriate electrical outlet. Phone line or satellite communication are

provided at no cost.

Questions & Answers

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Player Demographics

source: Ipsos Reid Texas Lottery Commission 2009 Segmentation Study

65+

13%

Over $100,000

18%

18-24

14%

55-64

11%

$75,000 to $99,999

12%

$15,000 to $24,999

Less than $15,000

11%

$25,000 to $34,999

18%

$35,000 to $49,999

15%

25-34

22%

45-54

18%

35-44

22%

Four-Year

College Degree

23%

Male

51%

Female

49%

Age

gender

income

educAtion

Graduate/

Professional

Degree

10%

$50,000 to $74,999

17%

High School

23%

Some College, No

Four-Year Degree

35%

Less than High School

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