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For More Information: 1-800-37 LOTTO (1-800-375-6886) [email protected] www.txlottery.org

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

It’s Good for Business! for Good It’s The Lottery — Lottery Texas The Welcome

Greetings from the ®!

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

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H High rate of return per square inch of counter H Eligible to receive generous selling bonuses. and floor space See chart below.

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.

9298_RecruitFolderInserts_GTP.indd 4 5/27/10 1:07 PM Where The Money Goes

Texas Lottery ticket purchases contribute to the Foundation School Fund – helping to pay for public ! 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.

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.

9298_RecruitFolderInserts_GTP.indd 3 5/27/10 1:07 PM The Business of Selling

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 TEXAS LOTTERY on the weekly invoice remains the same all week and is available for viewing and THU MAR04 2010 09:26:30 CT printing anytime after the retailer signs onto the system after midnight on Sunday. PRINTED AT RETAILER #000000 ------The previous four (4) weekly invoices are available from the terminal. The previous INVOICE SAT FEB 27 2010 RET 000000 eight (8) weeks are available through the web-based Retailer Services Center. SUMMARY

231 MEGA SALES 500.00 74 PWRB SALES 121.00 How does a retailer pay for packs of scratch-offs? 261 LOTO SALES 436.00 105 PCK3 SALES 215.00 10 DLY4 SALES 22.50 There are four (4) ways a pack of instant tickets can be settled (charged) 59 CSH5 SALES 134.00 57 TX2S SALES 112.00 to a retailer’s account. 0 PCK3 CANCEL 0.00 0 DLY4 CANCEL 0.00 797 NET ONLINE 1541.00 50 ONLIN CASH 2740.00- 1. Time – 45 calendar days from the date a pack is activated, the pack 694 INST CASH 7824.00- 41 SETTLEMENTS 12450.00 will automatically settle to the retailer’s current accounting week and 0 MEGA CREDIT 0.00 0 PWRB CREDIT 0.00 be included in the weekly invoice. 0 LOTO CREDIT 0.00 0 PCK3 CREDIT 13.00 0 DLY4 CREDIT 0.00 0 CSH5 CREDIT 0.00 2. Manually – After a pack is activated the retailer can choose to settle 0 TX2S CREDIT 0.00 0 INST CREDIT 0.00

the pack manually and it will be charged to the current accounting week. COMMISSIONS 699.56- The charge will be reflected in the weekly invoice available the upcoming ADJUSTMENTS 0.00 TOTAL DUE 2714.44 Sunday. This is the only method over which a retailer has direct control. EFT AMOUNT 2714.44 SWEEP DATE WED MAR 03 2010 3. Validation – When approximately 70% of the low-tier winning tickets ** VOID - NOT FOR SALE ** ($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.

9298_RecruitFolderInserts_GTP.indd 2 5/27/10 1:07 PM How To Apply

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.

GTECH Sales Offices Texas Lottery Claim Centers Abilene Lubbock Abilene Houston 2238 Industrial Blvd. 5833 W. 50th St., Suite 1 209 S. Danville, Suite C-103 1919 N. Loop W., Suite 100 325-695-0287 806-791-0291 79605 77008 800-460-2263 800-460-5763 325-698-3926 713-869-6451 Austin McAllen Amarillo Laredo 8520 Tuscany Way 6200 S. 35th, Suite C 7120 IH-40 West, Suite 110 1202 Del Mar Blvd., Suite 4 Building 6, Suite 100-B 956-682-9401 Park West Office Centre 78045 512-908-4300 800-460-6225 79106 956-727-8750 800-460-9922 806-353-0478 El Paso 3453 N. I-35 Lubbock 5 Butterfield Trail, Suite H Southwest Bldg. C, Suite 315 Austin 6202 Iola Ave., Suite 900A 915-774-0412 210-225-2130 611 E. 6th St. 79424 800-460-5727 800-460-7262 78701 806-783-0602 512-344-5252 Houston Tyler McAllen 7425 Pinemont Drive, Suite 400 1814 Capitol Dr., Suite 100 Beaumont 4501 West Business 83 713-699-0732 903-534-9821 6444 Concord Rd. 78501 800-460-4687 800-460-7821 77708 956-630-2278 409-347-0734 Irving Victoria Odessa 2700 W. Story, Suite 300 103 E. Mockingbird, Suite A Corpus Christi 4682 E. University, Suite 100 972-255-5527 361-578-6641 800-460-3374 800-460-6641 4639 Corona, Suite 19 79762 78411 432-550-6340 361-853-4793 San Antonio Lubbock 9514 Console, Suite 111 800-460-5763 1555 W. Mockingbird Lane 78229 Irving Oakbrook Plaza, Suite 203 210-593-0210 800-460-3374 75235 Tyler Abilene 800-460-7821 214-905-4912 Tyler 800-460-2263 3800 Paluxy Dr., Suite 330 Austin El Paso 800-460-2878 El Paso 75703 800-460-5727 Houston 401 E. Franklin Ave., Suite 150 903-509-9008 800-460-4687 San Antonio 79901 800-460-7262

915-834-4920 Victoria Victoria 2601 Azalea, Suite 16 800-460-6641

Fort Worth 77901 McAllen 4040 Fossil Creek Blvd., Suite 102 361-573-4185 800-460-6225 76137 817-232-9478

9298_RecruitFolderInserts_GTP.indd 1 5/27/10 1:06 PM Retailer Services Center

View 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: SAMPLE • Sales, Credits and Sweep Amounts REPORTS • 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 Register today at txlottery.org/rsc or call 1-800-375-6886. of FINANCIAL REPORTS. Retailers can also UPDATE BANK ACCOUNT Customer Service available Mon-Fri, 7 am to 5:30 pm. Email [email protected]. information and RENEW their LICENSE online.

9298_RecruitFolderInserts_GTP.indd 10 5/27/10 1:07 PM Retailer Support

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 aDd Power Play ® and your Powerball ® 1-800-37 LOTTO (1-800-375-6886) is available win up to $2 million Prize* could be with multiplied Monday - Friday, 7 a.m. - to 5:30 p.m. CST for up to times! ® buy a powerball Limited Time – lottery issues other than equipment or instant ticket and Add May 1 - 29 ® *Power Play does not apply to the Powerball ** During this promotion the Power Play grand/jackpot prize. **This Power Play Must be 18 years of age or older oddsto purchase are 2X a1:4, Texas 3X Lottery1:4, 4X ticket. 1:4, Copyright5X 1:5.33 © and 2010 thePower 10XTexas Play 1:16. Lottery promotion Commission. is available All rightsfrom Mayreserved. 1 - 29, The 2010 Texas or Lottery until the supports 10X multiplier Texas education. is drawn, PLAY whichever RESPONSIBLY. is later. Powerball overall odds are 1:35. The Texas Lottery reserves the right to discontinue this promotion at any time. for a chance ticket orders. to multiply your prize* up to times! H Online access to your lottery business information, GET A FREE $1 Powerball® With Power Play Without Power Play QUICK PICK WHEN YOU If Power Play number Match Prize Limited Time * drawn is 10X : ** 5 + PB GRAND/JACKPOT PURCHASE $5 OR MORE $2,000,000 OF 5 $200,000 May 1 - 29 $10,000 $100,000 4 + PB $1,000 POWERBALL ON ONE TICKET! see the “Retailer Services Center” page for details. 4 $100 $1,000 or until the 3 + PB $100 $7 $70 3 $70 2 + PB $7 $4 $40 1 + PB $30 is drawn. PB $3

Powerball Grand/Jackpot prize. H * Power Play does not apply to the The lottery operator (GTECH) hotline ** 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. ADD power play for $1 MORE! Copyright © 2010 Texas Lottery Commission. All rights reserved. The Texas Lottery supports Texas education. PLAY RESPONSIBLY. 3/30/10 8:51 AM

Powerball overallOnly oneodds (1) are FREE 1:35. Cash Only Five one (1) FREE ® Quick Pick Powerballwill be generated Quick Pick for willeach be Cash generated Five purchase for each of Powerball $5 or more. purchase The Texas of $5 Lottery or more. reserves The Texas the rightLottery to ®discontinue reserves the this right promotion to discontinue at any thistime. promotion Must be at any time. 1-800-458-0884 is available 7 days a week, 24 hours 9344_Mini Billboard_GTP.indd 1 Must18 be years 18 years of age of orage older or older to purchase to purchase a Texas a Texas Lottery Lottery ticket. ticket. Copyright Copyright © 2009 © 2010 Texas Texas Lottery Lottery Commission. Commission. All rights All rights reserved. reserved. The TexasThe Texas Lottery Lottery supports supports Texas Texas education. education. PLAY PLAY RESPONSIBLY. RESPONSIBLY. 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

9298_RecruitFolderInserts_GTP.indd 9 5/27/10 1:07 PM The Games

Scratch-Offs (Instant Games) Scratch-Off Games When players know instantly if they are Ticket Cost Pack Size Pack Value Commission a winner, they often bring immediate $1 150 tkts $150 $7.50 excitement to a location. $2 125 tkts $250 $12.50 $3 125 tkts $375 $18.75 That’s the fun of selling scratch-offs – preprinted tickets with numbers or $5 75 tkts $375 $18.75 symbols hidden under a latex covering. $7 75 tkts $525 $26.25 $10 50 tkts $500 $25.00 As with all Texas Lottery games, $20 25 tkts $500 $25.00 retailers earn 5% on every ticket sold. $50 20 tkts $1000 $50.00 Ticket numbering sequence begins with “001” for each pack.

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. Winning experiences with scratch-offs Loyal “numbers games” players and or on-line games benefit retailers rolling jackpots help build customer as well as their customers! traffic at retail locations.

9298_RecruitFolderInserts_GTP.indd 8 5/27/10 1:07 PM Questions & Answers

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.

9298_RecruitFolderInserts_GTP.indd 7 5/27/10 1:07 PM Player Demographics

Age 18-24 65+ 14% 13%

55-64 25-34 11% 22%

45-54 35-44 18% 22%

education Less than High School Graduate/ Professional 9% Degree 10% High School Four-Year 23% College Degree 23% Some College, No Four-Year Degree 35%

income Less than $15,000 Over $100,000 11% 18% $15,000 to $24,999 9% $75,000 to $99,999 12% $25,000 to $34,999 18% $50,000 to $74,999 $35,000 to $49,999 17% 15%

gender

Female Male 49% 51%

source: Ipsos Reid Texas Lottery Commission 2009 Segmentation Study

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