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 first 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 traffic, 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 official 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 BenefitsH High rate of return per square inch of counter

and floor space

H Potential for increased customer traffic,

inside sales and overall profits

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 financial 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 officer.

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 The 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 first 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-offs?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 reflected 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 reflected in the weekly invoice available the upcoming Sunday.

4. Game Closing – Any active or confirmed tickets in retailer possession after the official 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.

The Business of Selling

TEXAS LOTTERY

THU MAR04 201009:26:30 CT

PRINTED AT RETAILER #000000------------------------INVOICE

SAT FEB 27 2010RET 000000SUMMARY

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 field office claim center, GTECH district sales office 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

Abilene209 S. Danville, Suite C-10379605325-698-3926

Amarillo7120 IH-40 West, Suite 110Park West Office Centre79106806-353-0478

Austin611 E. 6th St.78701512-344-5252

Beaumont6444 Concord Rd.77708 409-347-0734

Corpus Christi4639 Corona, Suite 1978411361-853-4793

Dallas1555 W. Mockingbird LaneOakbrook Plaza, Suite 20375235214-905-4912

El Paso401 E. Franklin Ave., Suite 15079901915-834-4920

Fort Worth4040 Fossil Creek Blvd., Suite 10276137817-232-9478

Houston1919 N. Loop W., Suite 10077008713-869-6451

Laredo1202 Del Mar Blvd., Suite 478045956-727-8750

Lubbock6202 Iola Ave., Suite 900A79424806-783-0602

McAllen 4501 West Business 8378501956-630-2278

Odessa4682 E. University, Suite 10079762432-550-6340

San Antonio9514 Console, Suite 111 78229210-593-0210

Tyler3800 Paluxy Dr., Suite 33075703903-509-9008

Victoria2601 Azalea, Suite 1677901361-573-4185

Texas Lottery Claim CentersAbilene

2238 Industrial Blvd.325-695-0287800-460-2263

Austin8520 Tuscany Way

Building 6, Suite 100-B512-908-4300800-460-9922

El Paso5 Butterfield Trail, Suite H

915-774-0412800-460-5727

Houston7425 Pinemont Drive, Suite 400

713-699-0732800-460-4687

Irving2700 W. Story, Suite 300

972-255-5527800-460-3374

Lubbock5833 W. 50th St., Suite 1

806-791-0291800-460-5763

McAllen6200 S. 35th, Suite C

956-682-9401800-460-6225

San Antonio3453 N. I-35

Southwest Bldg. C, Suite 315210-225-2130800-460-7262

Tyler1814 Capitol Dr., Suite 100

903-534-9821800-460-7821

Victoria103 E. Mockingbird, Suite A

361-578-6641800-460-6641

GTECH Sales Offices

Lubbock800-460-5763

Abilene800-460-2263

Irving800-460-3374

Tyler800-460-7821

Austin800-460-2878

Houston800-460-4687

Victori

a800-460-6641

McAllen800-460-6225

San Antonio800-460-7262

El Paso800-460-5727

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Retailer Services CenterView your Texas Lottery business information from home, office 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 officers 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.

Register today at txlottery.org/rsc or call 1-800-375-6886.Customer Service available Mon-Fri, 7 am to 5:30 pm. Email retailerwebhelp@lottery.state.tx.us.

SAMPLEREPORTS

SAMPLEREPORTS

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As a licensed Texas Lottery retailer, you can benefit 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 promotion is available from May 1 - 29, 2010, or until the 10X multiplier is drawn, whichever is later. During this promotion, 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 are 1:35. The Texas Lottery reserves the right to discontinue this promotion at any time. Must be 18 years of age or older to purchase a Texas Lottery ticket.

Copyright © 2010 Texas Lottery Commission. All rights reserved. The Texas Lottery supports Texas education. PLAY RESPONSIBLY.

Limited Time May 1 - 29**

is drawn.

or until the

$2 millionwin 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

to multiply

your prize*

up to times!

Without Power Play With Power Play

Match Prize If Power Play number drawn is 10X:

5 + PB GRAND/JACKPOT*

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 upto times!

*Power Play does not apply to the Powerball grand/jackpot prize. **This Power Play promotion is available from May 1 - 29, 2010 or until the 10X multiplier is drawn, whichever is later.

During this promotion 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 are 1:35. The Texas Lottery reserves the right to discontinue this promotion at any time.

Must be 18 years of age or older to purchase a Texas Lottery ticket. Copyright © 2010 Texas Lottery Commission. All rights reserved. The Texas Lottery supports Texas education. PLAY RESPONSIBLY.

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 be18 years of age or older to purchase a Texas Lottery ticket. Copyright © 2009 Texas Lottery Commission. All rights reserved. The Texas Lottery supports Texas education. PLAY RESPONSIBLY.

GET A FREE $1 Powerball® QUICK PICK WHEN YOU

PURCHASE $5 OR MORE OF 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 each Powerball purchase of $5 or more. The Texas Lottery® reserves the right to discontinue this promotion at any time.Must be 18 years of age or older to purchase a Texas Lottery ticket. Copyright © 2010 Texas Lottery Commission. All rights reserved. The Texas Lottery supports Texas education. PLAY RESPONSIBLY.

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The Games

Scratch-Offs (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 traffic at retail locations.

SCRATCH-OFF GAMESTicket 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 benefit retailers

as well as their customers!

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Q: Why would I want to become a Texas Lottery retailer?A: To increase profits with a product that can expand customer traffic and create a fun atmosphere.

Q: How much does a Texas Lottery license cost?A: The application fee is $125 for the first location and $50 for each additional subordinate. Contact Retailer Services

at 800-375-6886 to confirm 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 Benefits” 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 office. 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 $100,00018%

18-2414%

55-6411%

$75,000 to $99,99912%

$15,000 to $24,9999%

Less than $15,00011%

$25,000 to $34,99918%

$35,000 to $49,99915%

25-3422%

45-5418% 35-44

22%

Four-Year College Degree

23%

Male 51%

Female49%

Age

gender

income

educAtionGraduate/ Professional Degree

10%

$50,000 to $74,99917%

High School23%

Some College, No Four-Year Degree

35%

Less than High School9%

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