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A Division of the South Dakota Department of Revenue Lottery Staff Organizational Chart Table of Contents

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A Division of the South Dakota Department of Revenue Lottery Staff Organizational Chart Table of Contents A DIVISION OF THE SOUTH DAKOTA DEPARTMENT OF REVENUE LOTTERY STAFF ORGANIZATIONAL CHART TAblE OF CONTENTS Norm Lingle South Dakota Brent Dykstra Executive Director Lottery Doyle Estes Commission Bob Hartford PAGE Roger Novotny Jim Putnam 2 Lottery Staff and Office Locations Clark Hepper Andrew Fergel Jim Towler Deputy Executive Legal Counsel Director Chuck Turbiville 4 Message from the Director Robyn Seibel Kelly Thompson Sherry Lauseng Joe Willingham Director of Security Director of Advertising Finance Manager Director of Sales & Video Lottery & Public Relations 5 Fiscal Year 2015 Sales and Revenues John Hepper Ron Leidholt John Keyes Julie Starla Volk Dan Sahr Systems Business Pirnat-Schultz Sales Supervisor Sales Supervisor Licensing Manager Revenue Appropriations Administrator Analyst Accountant Rapid City Sioux Falls Highlights Peggy Sandy Marty Johnson Jennifer Baker Lana Okeson Video Lottery Performance Testing Specialist Information Livingston Schleining Sales Rep (SF) & Operator Officer Accountant Sales Rep (RC) 9 Independent Auditor’s Report on Internal Control Over Liza Sickler June Classen Jane Aasby Jeff Thomas Senior Computer Secretary & Sales Rep (RC) Sales Rep (SF) Operator Validations Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Lonnie Moody Cynthia Delzer Pat Boyles Senior Computer Accordance with Government Auditing Standards Sales Rep (RC) Sales Rep (SF) Operator Kevin James Nancy Bungay Matt 11 Independent Auditor’s Report Sommerfeld Senior Computer Sales Rep (Pierre) Operator Warehouse Security (SF) 13 Financial Statements Patty Kirby Marla Gruber Jennifer Van Roekel Senior Computer Sales Rep (Pierre) Statement of Net Position Operator Validations (SF) Statement of Revenues, Expenses, and Changes in Fund Net Position Joanne Brandlee Statement of Cash Flows Sales Rep (Aberdeen) Notes to the Financial Statements VALIDATION CENTERS & MAILING AddREss MIssION STATEMENT PIERRE SIOUX FAlls RAPID CITY 711 E. Wells Avenue 3824 S. Western Avenue 1000 Cambell Street Pierre, SD 57501 Sioux Falls, SD 57105 Rapid City, SD 57701 To work cooperatively with our partner licensees to promote and ensure the integrity, Phone: 605-394-5106 Phone: 605-773-5770 Phone: 605-367-5840 fairness, security and honesty of lottery games, to maximize revenues for state Fax: 605-394-5844 Fax: 605-773-5786 Fax: 605-367-5845 programs and initiatives, and to ensure the Lottery remains a viable and sustainable South Dakota Lottery, PO Box 7107, Pierre, SD 57501 | lottery.sd.gov source of revenue and entertainment for the State of South Dakota. 2 SOUTH DAKOTA LOTTERY 2015 ANNUAL REPORT SOUTH DAKOTA LOTTERY 2015 ANNUAL REPORT 3 FROM THE DIRECTOR SALES & REVENUES To the Governor, Legislature and People of South Dakota: Total fiscal year 2015 Lottery revenue generated for state funds was more than $112 million. These revenues come from three main sources, as evidenced in the chart below. Each year, the South Dakota Lottery’s Annual Report details our Revenue progress in generating revenue from lotto, scratch, and video Sales Prizes Commission Distributed lottery, and recounts the successes and advancements over the Instant Tickets $25,839,734 $16,929,551 $1,453,501 $5,649,130 past year that will strengthen and enhance the Lottery in the Lotto Tickets $25,340,133 $12,814,156 $1,358,225 $7,577,367 future. Fiscal year 2015 was a busy one for our staff and the Video Lottery* $641,668,506 $442,538,510 $99,564,998 $98,847,722 South Dakota Lottery Commission and I’m happy to share our Total $112,074,219 accomplishments with you. *Video lottery sales are cash in; prizes are cash out; private share of net machine income is retailer commission. During fiscal year 2015, our retail partners and loyal players made it possible for the South Dakota Lottery to provide more than $112 million to the state funds we support. The Capital REVENUE AppRopRIATIONS Construction Fund received over $6.1 million for rural water systems, drinking water and wastewater improvement projects, and waste disposal and recycling programs. $94.7 million was Revenue from each of the three types of lottery products is designated for specific purposes. All monies provided to the Property Tax Reduction Fund which helps from the sale of scratch tickets are transferred to the state General Fund, nearly half of which supports lower local property taxes on owner-occupied and agricultural local K-12 schools, state universities and technical institutes. property. And $10.9 million was transferred to the state General Capital Property Tax Department Fund which supports K-12 education, state universities and General Construction Reduction of Social technical institutes. Since its inception in 1987, the Lottery has Fund Fund Fund Services* distributed over $2.47 billion in revenue. During fiscal year Instant Tickets $5,649,130 Lotto Tickets $1,400,000 $6,177,367 In the following pages, you’ll find out more about our 2015, our retail Video Lottery $3,824,712 $94,744,636 $188,374 achievements and improvements from fiscal year 2015; I also Video Lottery License Fees $90,000 encourage you to stay up-to-date on the South Dakota Lottery partners and loyal through our website (lottery.sd.gov) and social media platforms “players made it Totals $10,963,842 $6,177,367 $94,744,636 $188,274 (Facebook, Twitter and YouTube). possible for the South The first $1.4 million in revenue from lotto tickets We look forward to continuing our service to the State of South Dakota Lottery to is put into the General Fund. Anything beyond that Dakota and its residents in fiscal year 2016. provide more than amount is transferred to the Capital Construction Fund which filters money to the following areas: $112 million to • Water and Environment Fund - used for a FUNDING DeVELOPING LOWERING the state funds we EDUCATION NATURAL ReSOURCES PROPERTY TAXES variety of projects from drinking water and Sincerely, support.” wastewater improvement to recycling to paid out. The NMI for each machine is split between natural resource development. the State of South Dakota and the licensed operator NORM LINGLE who owns the machine, each earning half of the • Ethanol Fuel Fund - provides annual total. Of the state’s share, 49.5% is transferred to production payments to qualified South the Property Tax Reduction Fund which is used to Dakota ethanol producers. replace local property tax revenue for K-12 schools • State Highway Fund - used for state highways and lowers local property tax levies on owner- Norm Lingle and bridges. occupied and agricultural land. Executive Director South Dakota Lottery Revenue generated from video lottery terminals, or The South Dakota Lottery prides itself on using Net Machine Income (NMI), is calculated by taking every dollar earned as an investment in the future the cash put into the machines minus the prizes of South Dakota. *The Lottery annually provides the S.D. Department of Social Services with funding for problem gambling services. Funding comes from the Lottery’s 0.5% of net machine income for administration. 4 SOUTH DAKOTA LOTTERY 2015 ANNUAL REPORT SOUTH DAKOTA LOTTERY 2015 ANNUAL REPORT 5 FISCAL YEAR 2015 HIGHLIGHTS FISCAL YEAR 2015 HIGHLIGHTS The South Dakota Lottery markets instant tickets Lotto games reported an overall sales decrease of PLAY IT AGAIN and lotto games, and regulates, maintains and 11.3%; transfers were down 15.0% from fiscal year The Lottery held its first FY2015 JACKpoT WINNERS markets video lottery to raise revenue for state 2014. The first $1.4 million of revenue from the Play It Again grand prize July 1, 2014 programs and projects. Since its inception in 1987, sale of lotto tickets is distributed to the General giveaways in fiscal year the Lottery has distributed just under $2.47 billion Fund, and the balance is distributed to the Capital 2015. On Dec. 18, 2014, 7/19/14 in revenue. Construction Fund. Wanda Howey-Fox of EMPI 14 of Watertown Yankton took home the $10,000 grand prize when $230,000 Wild Card 2 jackpot INSTANT TICKETS VIDEO LOTTERY her name was drawn from the nearly 19,000 non- The Lottery launched 27 new INSTANT TICKET The Lottery regulates, VIDEO loTTERY winning 10K Run tickets entered into the drawing. instant ticket games during REVENUE markets and oversees NMI Edward Ries of Mobridge won $30,000 in the fiscal year 2015. Prices for video lottery game second Play It Again grand prize drawing held on UP UP instant tickets ranged from 5.3% activities through 7.5% Feb. 27, 2015. His name was chosen from the nearly $1 to $20, and prizes ranged COMPARED licensing procedures for COMPARED 77,000 non-winning $2 and $3 tickets entered. from $1 to $400,000 as well as TO FY2014 the machines, machine TO FY2014 9/27/14 merchandise prices. owners and operators, and Christa Ramierz of Hoven MONopolY MIllIONAIRES’ cLUB 10/15/14 establishments, as well as the $200,000 Wild Card 2 jackpot At the close of fiscal year 2015, there were 620 The MONOPOLY John Chalk Jr. of Brandon, MS maintenance of a comprehensive secure central licensed instant ticket retailers across the Millionaires’ Club $1 MIllION Powerball winner computer system. state. Retailers receive a 5% commission for debuted on Oct. 19, 2014, selling tickets, a 1% commission for cashing Video lottery sales (cash in) increased by 8.7% in as a lotto style game 11/15/14 winning tickets with prizes up to $100, and a 1% fiscal year 2015. The average number of active video that also offered a chance to win trips to Las Vegas Brent Banning & Robi Jones- commission for selling tickets with prizes of more lottery machines during fiscal year 2015 was 8,928 to appear on a nationally televised game show. Ward, both of Rapid City than $100. and the average number of licensed establishments On Dec.
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