Lottery Link. Record Sales Produce Record Commissions for Retailers. Inside: Best Selling Scratch-Off Games FY17 in Your Region Retailer Incentives

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1 Inside: Best Selling Scratch-Off Games FY17 in Your Incentives Issue 40 September 2017 Lottery Link Record Sales Produce Record Commissions for s I would like all of you, store owners and employees in the more than 6800 places that sell lottery tickets, to take a moment, stand up and take a bow. You deserve it. Thanks to your hard work, our lottery for the 11th year in a row set a new record for sales. The new record is a big number, $2.42 billion. That level of sales shows how much Tar Heels like their lottery. As our sales go up, so do your commissions. Total commissions paid this year rose to $169 million, $3 million more than last year. That s the most ever. The new records came during an unusual year. As you all know, we worked together to install all new equipment and a new gaming system for the lottery. So another big achievement this year was placing the newest technology in the lottery industry in your stores. Lottery players come into your store hoping the ticket they buy will have a big win. As I hope you know, we devote much of the money from our sales to prizes. Last year, our prize expense added up to $1.54 billion. If you look just at the biggest wins, we handed out checks of $1 million or more 59 times. The biggest prizes were a $10 million instant prize from the Ultimate Millions game and two a Day for Life prizes in the new Lucky for Life game that were each worth at least $7.2 million. All those prizes make for a lot of fun. The fun fuels the sales and the sales produce the profits that go to a good cause. The lottery raised more than $622 million a year for education, achieving profits of more than $600 million for the second year in a row. That s an average of $1.7 million a day. The total amount of money raised by the lottery since inception now exceeds $5.2 billion. That s worth a bow. That s something to be proud of. Thank you for the role you play in raising so much money for a good cause. The money is making a difference in all 100 counties in our state. Alice Garland Executive Director NC Education Lottery

2 Your Customers Won $1 Million or More 59 Times Last Year When your customers play the lottery, they hope to win a big prize one day. So how many times did that happen last year? Fifty-nine times. Yes. That s how many times between July 1, 2016 and June 30, 2017 that someone walked into lottery headquarters and collected a prize that ranged from $1 million to our biggest wins of the year, one $10 million scratch-off prize. What games produced those wins? 47 of those winners won with a scratch-off ticket. 10 won playing draw games 1 Cash 5 Winner 2 Mega Millions Winners 5 Powerball Winners 2 Lucky For Life Winners 2 won Lucke-Rewards second-chance drawings. Extreme Millions Ultimate Millions Where did the wins happen? The $1 million prize wins came from 34 of North Carolina s 100 counties and two were out-ofstate visitors.

3 Biggest Wins of the Year The big winners we met represented a crosssection of North Carolinians. We met a mail carrier, a salon owner, a chef, a grocery store owner, and an internet marketer. Our Big Winners: Manalle Earnhardt of Salisbury, VA Medical Center Nurse, Lucky For Life Top Prize 17 share record $1.7 million Cash 5 jackpot, Ticket sold in Hickory Did You Know? The lottery awarded $1.54 billion in prizes last year. That averages out to about $4.2 million a day. We hope to meet even more million dollar winners this year. You sell the tickets. We ll keep handing out the big prizes.

4 NCEL FY17 Net Sales: $2.42 Billion 2.21% 2.77% 0.80% $67 Million 5.61% $53 Million 6.05% $136 Million 12.64% $19 Million $146 Million 69.92% $1.7 Billion $306 Million Best Selling Scratch-Off Games FY17 was another record year for scratch-off games with sales of nearly $1.7 Billion. Scratch-off sales were up +5% from the previous year. The new Multiplier Family was a big part of that growth, while the new $30 game contributed to a 20% growth in the $30 category, and sales of $1 games were up +9% as the $1 ticket size was increased in February. $1 Games 5X The Cash Lucky 7 s Loose Change $2 Games 10X The Cash Triple 7 s $50,000 Taxes Paid $3 Games Christmas Vacation Lucky 7 s Crossword All American Bucks $5 Games 20X The Cash 7 $200,000 Taxes Paid $10 Games 50X The Cash,000 Cash,000 Taxes Paid $20 Games,000 Mega Cash,000 Platinum Payout Ruby Red 7 s $30 Games Extreme Millions Ultimate Millions

5 FY17 in Your FY17 Net Sales Statewide Sales $265,783, $398,534, $479,066, $615,905, $292,743, $367,884, % 16.47% 19.80% 25.45% 12.10% 15.20% Commissions $18,601, $27,895, $33,567, $43,109, $20,476, $25,726, Number of s al Top Five Catamount Travel Center Bj s Food Mart Silver Express Kounty Line Fletcher Sam s Mart 98 Carlton s Tanglewood Fairway One Stop #21 Mebane Food Mart Quick Mart Quick Shop Gas Stop #2 Shell Food Mart Raceway #6743 Shell 115 Cigarettes & More Adams Mart #2 Winners Food Mart Eagles Express Rose Mart #14 Grab and Go Mart #2 Short Stop Eagle Mart C Mart #4 Raceway 848 City Gas Tony s Friendly Mart Inc. Reilly Road Bp Amoco Circle V Mart Ms. Sudy s Am Station Time Saver Food Store #1

6 Incentives Total $343,997 Total $470,000 Royal Stop Citgo Suttles Quik Mart Kebo s Archery Inc Boulevard BP/Amoco Petro Express #3931 Easy Shop ll Valero Express Way PC Mart 1015 Mike Convenience Store Pinedale Food Mart BJ s Grocery Big D #600 J.S. Boyette BP Circle K #6330 M&S Food #3 Ingles #177 Kiosk VRAJ Stop One Food Mart & Tob. Shop Suttles Quik Mart In & Out Short Stop #43 Short Stop #26 Quality Mart #38 Big D #280 Quik Trip #1045 Pickett Food Mart Ingles Markets #3 Peacocks Stop, Inc Sam s Mart 98 Nic s Pic Kwik #9 Daytona Citgo Food Lion #2592 Kearney Grocery 7-Eleven #35566 Bobbys 2 Inc Smoke For Less Shalom Gas & Cash Mart Sam s Mini Stop One Stop Shop Speedway #07903 Short Stop #8 Short Stop #15 Freshway Food Mart Neighbors Mart 4 Brothers #214 Quality Mart #20 Cornor Mart Inc 7/5/2016 7/5/2016 7/11/2016 7/18/2016 7/22/2016 8/10/2016 8/11/2016 8/15/2016 8/18/2016 8/23/2016 8/26/2016 8/30/2016 9/12/2016 9/13/2016 9/22/2016 9/26/2016 9/27/ /11/ /24/ /7/ /29/ /1/ /9/ /14/ /19/2016 1/3/2017 1/3/2017 1/5/2017 1/17/2017 1/23/2017 1/27/2017 2/9/2017 2/9/2017 2/27/2017 2/28/2017 3/3/2017 3/13/2017 4/4/2017 4/17/2017 5/4/2017 5/8/2017 5/10/2017 6/1/2017 6/7/2017 6/12/2017 6/27/2017 6/28/2017 Food Lion #818 Earps BP #1 Sunoco Kangaroo Express #3941 Citistop Duck Thru Food Store #50 Food Lion #683 Kopp s Kwik Stop #2 Kangaroo Express #3978 Cross Creek Pawn & Jewelry Rose Mart #1 BI-LO #5093 Mojo Mart Handy Mart #51 Fast Food #3 Country Club Market Rite Aid #11313 Fast Food Mart #1 Star Market Speedway #06975 Kountry Korner Pic N Save Kangaroo Express #3174 Lowes s Foods #239 Murphy Express #8531 Duck Thru Food Store #26 Spring Forest BP/Fiddlestix Quik Trip #1029 Circle K #1526 HAN-DEE Hugo #92 Quick Stop Food Lion #1685 Gastonia Express Mart Waccamaw Speedy Mart Circle K #8409 Ingles Market #62 Gate #416 Jim Dandy #2 Yogi Food Mart Shopton Commons BP Handy Mart #3 Murphy Express #8572 Quick Mart Kangaroo Express #3942 Barker s Log Cabin Grocery Too Stanleyville Grocery Southeast Energy LLC#1412 J Cash Mart Super Stop Tobacco & Mini Mart Eagle Mart 3 Sunoco-Ramsey Street Quik Chek #6 Lowe s Foods #226 Zoom In #1 Civietown Mini Mart Murphy Express #8564 Greenvile 7/1/2016 7/7/2016 7/17/2016 7/17/2016 7/20/2016 7/27/2016 8/2/2016 8/12/2016 8/16/2016 8/19/2016 8/23/2016 8/27/2016 9/6/2016 9/6/2016 9/11/2016 9/15/2016 9/23/2016 9/23/2016 9/23/2016 9/24/ /3/ /12/ /12/ /18/ /19/ /20/ /25/ /31/ /1/ /6/ /7/ /7/ /14/ /16/ /19/ /23/ /27/ /6/ /11/ /12/ /21/ /21/ /30/2016 1/12/2017 1/12/2017 1/12/2017 1/24/2017 1/24/2017 1/28/2017 2/1/2017 2/9/2017 2/14/2017 2/25/2017 3/5/2017 3/7/2017 3/11/2017 $7,000 $2,500 $2,500 $2,666 $2,666 $2,666 $500 $500 $7,000 $3,333 $3,333 $3,333 $8,000 $8,000 Need It Got It Inc Salem Express Mira Mart Walmart #3437 (w/kiosk) Brown Summit Shell Kangaroo Express #3100 Friendly Mart Circle K # Travel Store #7 HAN-DEE Hugo #16 Speedway #07970 Kangaroo Express #3781 Intrepid Hardware Speedway #07940 Friendly Checkcashing #48 Cubbard Express #1 Sheetz #447 Norm s Minit Mart #6 Williamston Family Fare #457 Rite Aid #11504 John s Curb Market 3/20/2017 3/27/2017 3/27/2017 4/4/2017 4/13/2017 4/22/2017 5/2/2017 5/4/2017 5/5/2017 5/6/2017 5/8/2017 5/10/2017 5/11/2017 5/19/2017 5/19/2017 6/3/2017 6/6/2017 6/13/2017 6/23/2017 6/28/2017 6/30/2017 $3,500 $3,500 $8,000 $7,000 Total $22,000 Enmark Station #844 Gas Center #12 Minuteman Food Mart #15 Kangaroo Express #3010 8/3/2016 9/21/ /26/2016 6/7/2017 Total Speedway #08299 Cruizers #82 12/16/ /20/2016 Total $65,000 Lankfords Grocery Magnolia Food Mart Magnolia Food Mart Fast Stop of East Spencer 7th Street Marketplace 8/1/2016 9/15/2016 9/15/ /20/2016 3/30/2017 $25,000 $25,000

7 Did You Know? Responsible Gaming A pproved Our state, using money set aside from the lottery, provides free help to anyone who has a gambling problem. As a lottery retailer, you and your employees are in a position to play an important role by referring anyone who needs help to the place where they can get it, the N.C. Problem Gambling Helpline. Do you know the signs of someone with a potential gambling problem? Preoccupied with gambling Looking for the high that comes from gambling Jeopardizing relationships, job or educational opportunities Need to gamble with increasing amounts of money to achieve desired excitement After losing, often returns another day to get even (chasing losses) Declining work performance Irritability when trying to cut back on playing Neglecting basic needs like money for food and rent Pressuring others for money as financial problems crop up Lying about how money is spent If you observe a player who displays any of these behaviors, simply press the Problem Gambling Helpline button on the lottery terminal and a ticket message will print. The message reads: Does playing lottery no longer seem fun? Help is available. Call Meet our team: Sarah Hardin, Director of Government Affairs, and Teri Riddle, Corporate and Government Affairs Specialist. They are here to help you if you have any questions or need information about responsible gaming training. They can be reached at: (Sarah) and (Teri). Customer Service Hotline Option #1 Lottery Equipment Service or Supplies IGT Training Terminal Service Play Slips Terminal Supplies/Printer Paper Option #2 Check ID! North Carolina General Statute 18C-131(d) prohibits the sale of lottery tickets to a person under 18 years of age. Always check proper identification and look for the red border around the photo, which flags a license as belonging to someone under 18. Proper checking of ID is each retailer s responsibility, so please be sure that all of your store s personnel are aware of this requirement. To assist with this, the legal sell-to age date is now located at the top of the terminal screen. Instant Tickets, Contracts or Accounting Questions 1 Customer Services General Lottery Questions Jackpot Signs Adjustments 2 Retail Sales Specialist Ticket Orders 3 Contract Questions Applications Change of Ownerships Terminal Installations/Moves ADA (Americans with Disabilities) 4 Theft, Fraud or Unlawful Sales Security To reach Lottery Security directly: Missing tickets Stolen tickets NCEL Holiday Closings Veteran s Day November 10th, 2017 Thanksgiving November 23rd & 24th, 2017 Christmas December 25th, 26th & 27th, 2017 nclottery.com