This document is made available electronically by the Legislative Reference Library as part of an ongoing digital archiving project. http://www.leg.state.mn.us/lrl/lrl.asp Fiscal year 1998 was a new, different and fun-to-play year of great change for the demands of players. Minnesota State , its We were also successful retailers and our loyal play­ in implementing higher ers. The enormity of the task retailer commissions. Our of installing a new computer retailers are deserving of this system, new terminals for our higher compensation for instant-only retailers, a new their fine efforts. As we move player hotline, one entirely into the last year of the mil­ new on-line game and two lennium, we are committed on-line game re-launches in to innovation, even better one year was daunting. It service and large doses of the required an all-out effort by things we sell - fun and staff and retailers. Thanks to entertainment. these efforts, sales rebound­ The Lottery is enormous­ ed, new excitement was gen­ ly popular two-thirds of erated and we had a great Minnesota's adults play. We year. are grateful for the support, To sustain player appeal, for your confidence and for the Lottery must always keep the privilege of working with an eye on play style, prefer­ you for the benefit of our ences, themes and service. great state of Minnesota. The technical aspects - from software to printing - can be Very truly yours, overwhelming, but teamwork makes it happen. set a new world record. Gopher 5 re-established its solid "Minnesota's Own" Director cash game position. New instant games fulfilledthe Highlights

When the clock struck received a big boost from enue. The most notable midnightjune 30, signaling games sales, which prizes were a $5 million the end of fiscal year 1998, totaled $113.1 million, up 18 Powerball jackpot won in one thing percent August 1997 and a $14.9 mil­ was certain: from the lion Powerball cash jackpot The year previous won in March. was a busy year. More A major vendor change and exciting specifically, punctuated the fiscal year for one for the Powerball the Lottery. At the end of Minnesota was rede- June, the Lottery hired a new

State Actor Earl Schuman, 82, starred in signed and advertising agency, Lottery, its the Lottery's TV commercial that sales soared, Minneapolis-based Foley introduced . players and fueled in Sackett. Foley Sackett has 35 retailers. There was some- part by a $195 million jack- employees and accounts that thing foreveryone - two pot in May. include Excelsior-Henderson Powerball jackpot winners, a Hefty sales are always Motorcycle Manufacturing new $1,000-a-week-for-life good news for the state of Co., Leeann Chin Chinese four-digit game, major Minnesota, and this year was Cuisine, Cargill, American improvements to Powerball no exception. The Lottery Express and Blue Cross Blue and Gopher 5, the introduc­ contributed $87.5 million to Shield of Minnesota. Its con­ tion of a record 25 instant the state in fiscal year 1998. tract expires Sept. 1, 2001. games and a world record Those dollars benefit the $195 million Powerball jack­ Environment and Natural oorn@rnowrnrn pot. Resources Trust Fund, the JAN 2 9 1999 But the highlight that state General Fund and com­ LEGISLATIVE REF.Ettt,'-vt. uHRARY stands out most is a credit to pulsive gambling treatment Bitl.�,Ur.�f!P�nru��e May I6����ackpot at the retailers that sell Lottery programs. $175 million. tickets statewide. Sales for fis­ The news was equally cal year 1998 were $372.9 good for players, who cashed million, the second highest in in on $225 million in prizes, Lottery history. Overall sales or 60 percent of Lottery rev- Beneficiaries Lottery proceeds mean River, reduce pollution and Environment and Natural new environmental projects. mercury levels in lakes and Resources Trust Fund, which Some of the projects are streams, set aside land for receives 40 percent of impressive and popular struc­ wildlife and natural habitat, Lottery proceeds. In fiscal tures like the visitors year 1998, the Lottery centers at Gooseberry contributed $24. 7 mil­ Falls and Fort lion to the trust fund Snelling state parks. for a total of $199 Others are heavily million since Lottery used, like boat ramps, start-up. (The trust fishing piers and fund also receives a many miles of recre­ portion of the ational trails that unclaimed prize meander throughout The visitor center at Fort Snelling State Park pool.) received $638,000 from the trust fund and is a scenic portions of the shining example of how Lottery proceeds are The other 60 per­ making Minnesota a better place. state. Still others are cent of Lottery pro­ less visible but critical to pre- and improve fish habitat and ceeds goes to the state serving the state's natural hatcheries. General Fund, which resources, such as measures Since 1990, Lottery pro­ finances programs like K-12 to clean up the Minnesota ceeds have been used to education, public safety, finance more than 130 pro­ health and human services, The trust fund finances a statewide survey of rare native jects worth $82 million. Most and aid to local governments. plants and animals, like the Lapland Buttercup. of the projects have had far­ In fiscal year 1998, the reaching benefits. In fact, General Fund received $61.4 Lottery proceeds have been million from the Lottery; that spent across Minnesota to included a 6.5 percent in­ preserve, restore and lieu-of-sales tax and a portion enhance the state's environ­ of unclaimed prizes. ment. The Lottery also con­ The Lottery funds these tributed $1.4 million to the projects through the state Department of Human Fiscal Year '97 ------Prizes 60.1 % Services forcompulsive gam­ Dollar Distribution $224 million bling treatment programs. -- General Fund 17.2% Since start-up, compulsive $64 million gambling funding has totaled - Environment & Natural $ 1 Res. Trust Fund 6. 7% 6.2 million throughjune 30, � 1998. $25 million Administration 11.0% ______._ 1 $41 million �_..:;;:;______Retailers 5.1% $19 million

.----� ------, Fiscal Year '98 ------Prizes 60.0% Dollar Distribution $225 million -- General Fund 16.4% $61.4 million 1 Environ. & Nat. Res. Trust Fund 6.6% =._J $24.7 million �� // Compulsive Gambling 0.3% -�1 $1.4 million Administration 11.0% _____._ 1 $41 million -�-----Retailers 5.7% $21.5 million

A campground and recreational trail were developed at Glendalough State Park with $392,300 from the trust fund. Games In the annals of Leading the Lottery history, fis­ charge was Power­ cal year 1998 will ball, which was go down as the Year redesigned and re­ of the Numbers launched Nov. 2. Game Launch. In The new Powerball the span of five gives players the months, the Lottery choice of collecting launched a new the jackpot over 25 daily multi-state years or in one drawings game lump-sum payment called Cash4Life, that amounts to redesigned and re- the case in Minnesota, about half of the launched Powerball and instant games were by far advertised jackpot. The Gopher 5, and retired anoth­ the most popular choice game's overall odds of win­ er daily multi-state drawings for Lottery players, total­ ning stayed the same, at 1 in game, . ing $259.8 million, or 70 35, with the odds of winning The Lottery also launched percent of overall sales. the jackpot increasing to 1 in 25 new instant games - 18 $1 Instant sales were down 4 80 million. On the other end games, five $2 games and two percent from fiscal year of the prize structure, the $5 games - more than any 1997 but were the third small prizes increased and other year. And as is always highest yearly total in two are now easier to win. Lottery history.

sale�::�:: ��::_s �f)1Q1@I®�D matic increase dur- It could happen. ing fiscal year 1998. Sales totaled $113.1 mil- The $1, $2 and $5 prizes are lion, an 18 percent now $3, $4 and $ 7. increase over the previous The new odds were year. designed to build larger jack- pots and greater sales. It Two percent of sales were worked. In May, the jackpot shared between two daily rolled to $195 million. With multi-state games. Cash4Life the help of that mega-jackpot, started March 30 and finished the year with $4.2 mil­ lion in sales. It replaced Daily Cas� Life Millions, which was retired March 30 Minnesota's Powerball sales with fiscal year 1998 sales of. were up 34 percent over the $5 .1 million. previous year, totaling $71.3 Daily 3, a perennial million, or 19 percent of total steady performer, registered sales. sales of $12.9 million, or Gopher 5 was redesigned 4 percent of sales. Jan. 31 and, like Powerball, its odds were increased to build larger jackpots. But the changes also included new prize levels with the addition of a Bonus Ball. Players can now win $5,000 and $100 in addition to $10, $250 and the jackpot, which still starts at $100,000 and rolls until someone wins. Gopher 5 sales ended the year at a steady $19.6 million. Players andWinners Lottery winners across checks worth $250,000, he when it gets up to $20 mil­ the state collected $225 mil­ gave up his milk route to lion or $30 million. On [that] lion in prizes during fiscal spend more time farming Friday, I said, 'What the year 1998. The most notable and enjoying his were Verndale's Charlie family. "I might get Jasmer and Montgomery's a fishhouse, too. Ralph and Darlene Collier. Go fish on the They collected the year's two Crow River like I largest prizes: $5 million in used to when I was August 1997 and $14.9 mil­ a kid," he said. I lion in March, respectively. The Colliers' A milk truck driver and jackpot win, on the part-time farmer,Jasmer other hand, was a Ralph and Darlene Collier, Montgomery, won the first Powerball back-to-work situa- cash-option jackpot in Minnesota. tion. Ralph Collier continued working at Nordic­ heck."' Track in Chaska and Darlene Statewide, 40 Powerball Collier returned to her posi­ players won $100,000 in fis­ tion with Montgomery-Lons­ cal year 1998 by matching dale Public Schools. Ralph five numbers. One of those Collier bought his lucky tick­ winning tickets was re­ et at Casey's in New Prague deemed in October by a 17- and picked the cash option, member Lottery pool from becoming the first cash­ Weigh-Tronix in Fairmont. Charlie Jasmer was all smiles option jackpot winner in Thirteen of the lucky mem­ when he won a $5 million Powerball jackpot. At left is Minnesota (they received a bers piled into three cars for his son, Tim. single lump-sum check rather the two-and-a-half hour drive bought his winning quick­ than 25 annual payments). "I to Roseville to claim the pick ticket at Rife's Stop & am not a lucky individual," prize. Shop in Sebeka. After collect­ Ralph Collier insisted, "but I Gopher 5 also had its ing the first of 20 annual will occasionally• buy a ticket share of big winners. In all, 28 tickets matched all five numbers to win jackpots between $100,000 and $757,469. Some of those jack­ pots: $688,045, $583,456, $575,000 and $489,537. The Lottery's newest numbers game, Cash4Life, didn't produce any top-prize winners in Minnesota during its first three months of exis­ Nick and Michelle Casper (with daughter Taylor) of Cambridge tence (sales began March 30), won $100,000 May 20, missing a $195 million Powerball jackpot by one number. but two lucky players won $100,000, seven more collect­ Cash4Life produced five top­ Instant games players ed $50,000 and another five prize winners of $1,000 a were also lucky. In fact, 20 players claimed $25,000 week for life, 10 $100,000 players scratched their way prizes during the fiscal year. winners, 26 $50,000 winners to $100,000 prizes fromthe In the I I -state network, and 42 $25,000 winners. $5 games Monte Carlo and Night on the Town.

Minneapolis brothers Thongsy, left, and Somboune Syonesa split a $100,000 Cash4Life prize in May.

Thirteen of the 17 Lottery pool members from Weigh­ Tronix in Fairmont made the trip to Roseville to claim a $100,000 Powerball prize. Retailers Fiscal year 1998 was busy the commission rate that for the 3,341 Lottery retailers retailers earn for selling across the state. All retailers Lottery tickets was increased sell instant tickets; 1,961 sell from 5 percent to 5.5 percent. numbers games. Whenjune And, a 1 percent "cashing 30 rolled around, they bonus" was instituted, mean­ Val Johnson, a k a "The reached at least two mile­ ing retailers now receive 1 Lottery Queen," owns Val's Quik Mart in the Minneapolis stones. percent of all prizes players skyway. For starters, retailers redeem at their store. earned $21.5 million in com­ Retailers earn every Store jnstant tickets could missions and incentives, a penny they get from the pick from a variety of Lottery 13.1 percent increase over the Lottery. They have the diffi­ items or hardware. previous year and the most cult task of introducing new Some retailers, like the retailers have ever earned for games to Lottery players, Blue Moose in East Grand selling Lottery tickets. answering every imaginable Forks, are fortunate enough Also, startingjuly 1, 1998, type of Lottery question, to sell Lottery tickets during advertising Lottery games the state's largest events. The Robin Johnson, owner of Lake­ land True Va lue and General with point-of-sale materials Blue Moose was the official Store in Pelican Rapids, Lottery retailer at WE Fest in designed a promotion around and running occasional pro­ the Lottery's Hardware Store Detroit Lakes last summer, instant game. motions to boost sales and educate the public. helping set an all-time high Of course, every retailer for Lottery sales of $122,000 is different when it comes to during WE Fest's three-day promotions and special run. events. Some retailers, like Other retailers have Lady Lakeland True Value and Luck looking down on them. General Store in Pelican Rife's Stop & Shop in Sebeka Rapids, offer smaller promo­ and Casey's General Store in tions designed around a New Prague are two perfect theme. Lakeland customers examples. These two conve­ who bought 10 Hardware nience stores were respon- I IJ

John and Kim Lind have owned B&B Market in Cloquet for the last 10 years. They bought it from Kim's parents.

sible for turning their Lottery a complex collection of store

players into multimillionaires types - mainly convenience Jay Cattoor, left, manager during fiscal year 1998: Rife's stores, supermarkets, restau­ of Cattoor's Phillips 66 in Marshall, accepts a $5,000 sold a winning $5 million rants, bars and grocery stores, bonus for selling a winning $100,000 Powerball ticket Powerball jackpot ticket and but also drug stores, bait during a special promotion. Dennis Ve rcruysse of Casey's sold a winning $14.9 shops and even a flea market Minneota was the lucky winner. million Powerball cash-option - that cater to diverse player jackpot ticket. populations with unique Retailers have fun selling needs. Lottery tickets, but they don't have to do it all by them­ selves. They get help from the Lottery's team of sales and telemarketing representa­ tives. The retailer network is INCOME AND EXPENSES

INCOME 1998 1997 Sales $372,872,371 $368,516,685 Less Tax (In-Lieu-of-Sales Tax) 24,236,714 23,953,615 Total Gross Receipts 348,635,657 344,563,070 Other Income 2,094,293 4,308,808 Total Gross Revenue 350,729,950 348,871,878

EXPENSES Direct Costs Prize Expense 224,962,901 224,447,929 Compulsive Gambling Contributionfrom Prize Fund 1,425,000 800,000 Unclaimed Prizes Paid to State 5,008,320 4,396,537 Retailer Commission & Incentives 21,532,246 19,044,874 Total Direct Costs 252,928,467 248,689,340 OperatingExpense Ticket Costs 3,924,030 4,582,444 On-Line Vendor Commission 7,979,156 7,105,847 Occupancy Costs 1,882,191 1,871,024 Depreciation 1,050,796 687,636 Advertising 8,450,281 8,294,001 Salaries& Benefits 9,725,129 8,952,005 Promotion 3,083,546 4,126,501 Purchased Services 1,477,864 1,336,961 Communications 1,304,766 1,453,067 Computer Maintenance 388,443 217,239 Supplies & Materials 919,553 783,641 Contribution: Compulsive Gambling 0 540,000 Contiibution: Gambling Enforcement 150,000 150,000 Other 803,533 784,375 Total Operating Expense 41,139,288 40,884,741 Net Proceeds 56,662,195 59,297,797 The financial statements are excerpts from the Lottery's audited financial statements for the years endingjune 30, 1998 and June 30, 1997. Complete financial statements are available upon request. STATEMENTS OF CASH FLOWS

1998 1997 Cash Flows from Operating Activities Operating Income $54,567,902 $54,988,989 Adjustments to Reconcile Operating Income to Net Cash Providedb y Operating Activities Depreciation 1,050,796 687,636 Other Income 159,769 2,480,077 Changes in Assets and Liabilities: Accounts Receivable 4,163,657 (3,867,103) Interest Receivable (5,693) 47,261 InstantTicket Inventory (211,610) 224,964 Merchandise Prize Inventory 0 281,858 Prepaid Expenses (29,174) 34,080 Unclaimed Prizes Due to State 611,783 1,840,359 Due to Other State Agencies (6,283) (41,971) Accounts Payable (30,843) (5,327,289) Tax (in-Lieu-of-SalesTax ) Payable (109,738) 225,758 Prize Liability (1,447,523) 261,956 Retailer IncentivesPa yable 469,513 (875,440) Compensated AbsencesPa yable 97,144 25,754 Deferred Revenue 96,383 (75,932) Prize Annuities (2,155,164) 2,335,164 PrizeReserve (131,195) 0 PromotionsPa yable 58,831 0 Net Cash Provided by Operating Activities 57,148,555 53,246,121

Cash Flows fromNonca pital Financing Activities Net Proceeds Paid to State (58,250,019) (56,024,855) Net Cash Used by Noncapital Financing Activities (58,250,019) (56,024,855)

Cash Flows fromCa pitalFinancin g Activities Purchases of Fixed Assets (3,797,919) (1,213,640) Disposal of Fixed Assets 0 15,615 Interest Expense 0 (11) Net Cash Used by Capital Financing Activities (3,797,919) (1,198,036)

Cash Flows fromInvestin g Activities Interest Income 1,934,524 1,828,742 Net Cash Provided by Investing Activities 1,934,524 1,828,742 Net Increase (Decrease) in Cash and Cash Equivalents (2,964,859) (2,148,028) Beginning-of-Year Cash and Cash Equivalents 22,680,105 24,828,133 End-of-Year Cash Equivalents 19,715,246 22,680,105 Year ending June 30, 1998, compared to June 30, 1997 FinancialSta tements BALANCE SHEETS

ASSETS 1998 1997 Cash and Cash Equivalents $19,715,246 $22,680,105 Accounts Receivable 3,642,966 7,806,623 Interest Receivable 142,296 136,603 Instant Ticket Inventory 621,797 410,187 Prize Annuity Investments 3,281,360 717,200 Prepaid Expenses 29,174 0 Fixed Assets, Net 4,731,667 1,984,543 To tal Assets 32,164,506 33,735,261

LIABILITIES AND RETAINED EARNINGS Liabilities: Net Proceeds Due to State 5,089,874 6,677,698 Unclaimed Prizes Due to State 5,008,320 4,396,537 Due to Other State Agencies 37,900 44,183 Accounts Payable 2,257,345 2,288,188 Tax in-Lieu-of-Sales Tax Payable 2,240,498 2,350,236 Prize Liability 9,590,488 11,038,011 On-Line Prize Reserve 868,805 1,000,000 Retailer Incentives Payable 2,469,513 2,000,000 Promotions Payable 58,831 0 Compensated Absences Payable 877,073 779,929 DeferredRevenue 204,498 108,115 Prize Annuity Payable 3,461,361 3,052,364 To tal Liabilities 32,164,506 33,735,261 Retained Earnings 0 0 To tal Liabilities and Retained Earnings 32,164,506 33,735,261 Ye ar ending June 30, 1998, compared to June 30, 1997

$100 $90 $80 Contributions $70 to State $60 Cf) C � $50 � $40 $30 $20 $10 $0 ..______.__ __.______.____. ______, FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 D Sales Tax • General Fund Env. & Nat. Resources Trust Fund All Other -----11----- TOTAL PAI D TO STATE BENEFICIARIES 1998 1997

General Fund Tax in-Lieu-of-Sales Tax $24,236,714 $23,953,615 Net Proceeds 33,997,317 35,578,678 Unclaimed Prizes 3,004,992 2,637,922 Compulsive Gambling fromPrize Fund 1,425,000 800,000 Compulsive Gambling from Operations 0 540,000 Gambling Enforcement from Operations 150,000 150,000 Subtotal General Fund 62,814,023 63,660,215 Environment and Natural Resources Trust Fund Net Proceeds 22,664,878 23,719,119 Unclaimed Prizes 2,003,328 1,758,615 Subtotal EnvironmentalTr ust Fund 24,668,206 25,477,734 Total Paid to State 87,482,229 89,137,949 Ye ar ending June 30, 1998, compared to June 30, 1997

30 - - 25 ..... - - Instant ------..... - -- ..... - - 20 ..... Games ...... - ales _Q 15 ..... � 10 .....

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I 0 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June D Fiscal Ye ar '97 D Fiscal Year '98

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I 0 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June D Fiscal Ye ar '97 D Fiscal Year '98 ----�m----- State and Recreation Minnesota River Natural Arboretum Land Acquisition Area Acquisition, Devel­ Resource Data Project - $450,000 opment, Betterment and $250,000 Prairie Heritage Fund - Rehabilitation - million $3.5 Land Use Development and $500,000 Metropolitan Regional Parks Natural Resource Protection Phalen Area Wetland Acquisition, Rehabilitation and Model - $400,000 Restoration, Phase II - Development - million $3.5 Fillmore County Soil Survey $600,000 Protecting Rural Historic $65,000 Reinvest in Minnesota Critical Landscapes in High Renewable Energy Habitat Match Program - Development Areas - $80,000 Demonstration and Education $630,000 Developing the Birch Coulee in State Parks - $80,000 Reinvest in Minnesota Wildlife State Historic Site - $253,000 School Nature Area Project - Habitat Stewardship - Nitrate Education and Te sting $250,000 $400,000 - $150,000 Minnesota Frog Watch Reinvest in Minnesota Snake River Watershed $300,000 Scientific and Natural Area Improvements - $100,000 Partners in Accessible Acquisition - $200,000 Red River Valley Planning Recreation and Environmental Reinvest in Minnesota Wildlife and Management - $375,000 Responsibility - $550,000 Habitat Acquisition Sustainable Lake Plans - A Public School Partnership: $500,000 $270,000 Environmental Service Reinvest in Minnesota Minneapolis Chain of Lakes Learning - $100,000 Fisheries Land Acquisition - Lake Shore Restoration - State Wolf Management - $567,000 $300,000 $100,000 Minnesota County Biological Pollution Tr ends in Minnesota Electronic Environmental Survey - $1.2 million -$325,000 Education Raptor Network - Fishing Piers and Public Shore Biological Control of $222,000 Access - $355,000 Agricultural Pests - $200,000 Environmental Indicators Public Boat Access - $350,000 Crop Management to Initiative - $250,000 Fisheries Statewide Hatchery Minimize Pesticide Use Minnesota's Forest Bird Rehabilitation - $400,000 $300,000 Diversity Initiative - $350,000 Restoring White Pine in the Sustainable Farming Systems Water Qu ality Indicators - Minnesota Landscape - $560,000 $250,000 $120,000 Prairie-Grassland Landscapes Stream Habitat Protection - Oak Savannah Restoration in - $125,000 $225,000 St. Paul Regional Parks - Toxic Emissions from Fire Loons: Indicators of Mercury $200,00 Department Tr aining - in the Environment - Biological Control of Eurasian $65,000 $230,000 Water Milfoil and Purple New Models for Land-use Tr aining and Research Ve ssel Loosestrife - $150,000 Planning - $530,000 forLake Superior $130,000 Legislative Commission on Metropolitan Area Minnesota Rare Mussel Minnesota Resources - Groundwater Model to Predict Conservation $91,000 $472,000 Contaminant Movement - Sand Dunes State Forest *These projects were fu nded entirely or in part $300,000 by the Environment and Na tural Resources Acquisition $400,000 Trust Fu nd during 7997-99 with proceeds from the sale of Lottery tickets. Revenue Distribution

The Minnesota State spent on the Lottery goes of prize money, retailer com­ Lottery works for all Minne­ toward preserving and pro­ mission and contributions to sotans. tecting the state's environ­ the state for environmental Every time you scratch ment and for state General projects, public services and a Lottery instant ticket or Fund services like K-12 edu­ compulsive gambling treat­ choose digits for a numbers cation, public safety and ment programs. game, you're helping health and human services. improve the quality of life in Almost 88 percent of Minnesota. It's that simple. Lottery revenue is returned A portion of every dollar to Minnesotans in the form .

Palisade Head on the North Shore of Lake Superior is one of the many natural wonders of the Minnesota environment. Administration 11.5% Revenue / $324 million Distribution April 1990 - Retailers 5.5% June 1998 - $156 million

Environment & Nat. Res. Trust Fund 7.1 % $199 million General Fund 9.5% $268 million Prizet..6% __i ll $1.65 billion In-Lieu-of-Sales / Tax 6.4% Other State $180 million Programs 1.4 % $37 million George R. Andersen Headquarters Brainerd Director 2645 Long Lake Rd. 523 S. Sixth St. Roseville, MN 55113 Brainerd, MN 56401 Don Masterson (651) 635-8100 (218) 828-2722 Director forOper ations (651) 635-8268 TDD Gloria Vande Brake John Mellein Regional Manager Customer Service Director for Marketing We ekdays 8 a.m. - 5 p.m. Owatonna Mary Ellen Hennen 1-800-475-4000 1836 S. Cedar Ave. Director forAdminis tration (651) 297-7456 Owatonna, MN 55060 (507) 444-2400 24-hour Player Hotline Dick Bacon Mark Reiling 1-800-657-3946 Chief of Security Regional Manager (651) 297-7371 Don Feeney Eagan Regional Offices Director for Research 1060 Lone Oak Road Kate McCarthy Virginia Eagan, MN 55121 Public Relations Manager 5463 17th Ave. W. (651) 688-1800 Virginia, MN 55792 Sylvia Cruz, Debbie Hoffmann (218) 749-9650 Terrie Watters Executive Assistant Tom Durheim Regional Managers Dale McDonnell Regional Manager The Lottery employs 144 people Legal Counsel Detroit Lakes at its Roseville headquarters and 67 people in its six regional Web site 1111 Highway 10 E. offi ces. www.lottery.state.mn. us Detroit Lakes, MN 56501 (218) 846-0700 E-mail Jerry Ouren [email protected] Regional Manager

Marshall 750 W. College Drive Marshall, MN 56258 (507) 537-6041 Doug Landsman Regional Manager I HG6133.M6 M57 1998 Minnesota State Lotterv. �r • Annual report onam

e was also a key figure H G 6 1 3 3 . M 6 rvi s ·7 1 M·l n 9 98 L.Jicate negotiations with . n es o ta St a An n t e lo t t e r v u a l r e po r t national concerns on ====- -'===o==A , 1: -� bdary issues, statewide --:=.-==�0 ------r��� stries and diverse special- Minnesota le ------...J rest groups.Joe was also the environmen rumental in the negotia- whenjoe Alex, - Ii and non-violent imple- commissioner o ---""------,.__ . ______----. ---j �tation of the Leech Lake _ I s Department of : rrting and fi hing agree- Resources (DN nt. And he took an active the Lottery's "E e in ensuring that Journal" radio ources were accessible to shows, died fro e handicapped community. tions following From his humble begin­ was 75. ngs as a game warden in Joe had th, .gfork to his rise through the DEMCO having the lon NR ranks, Joe touched any DNR con mny people's lives. His gen-

(1978 -1990) and also served state's abunaa1u 11aLu.1 a. .. __ lne respect for natural under both political parties. resources with the need to resources and his compassion He was the host of the ensure that those resources for the people he came in Lottery's "Environmental were available to all contact with will always be Journal" radio show, a two­ Minnesotans. remembered. minute daily program that Joe oversaw the decentral­ features a wide range of envi­ ization of the agency from a ronmental topics and is St. Paul-based, decision-mak­ broadcast by stations across ing entity to one in which the the state. He taped 364 seg­ organization was brought ments since the program closer to the people it served began in December 1991. and the resources it managed. -----11----- Cover paintingby Derk Ha nsen

Proceeds BenefitOur Natural and Economic Environments.