Th pc Li Hm. pig uc bigh i h cmmh fic 2018 u p
i L Cmmh f Kuc OFFICE OF THE GOVERNOR Mh G. Bvi 700 Cpi Avu Gv Sui 100 A Gv f Kuc, I u i cgu h Kuc L B f Dic, i, Ff, mgm ff f c gi hig c b fiihig fic 2018 b ig $1,042,512,000 (502) 564-2611 i KY 40601 ic. Th h g figu i Kuc L hi, $42 mii jump v c Fx: (502) umb. 564-2517 Bcu f m miii m ic pc cg chhip g pgm, m m i b vib hp u b, bigh m vig u cg i Kuc mi h bgi hi c f cg. Ch f h Cmmh fm h L i FY18 $262.8 mii, ic f $11.2 mii c. I g biv h b-uc fc i Kuc ih u u i i icipi h mp civ i u ucc. I v p m pmi f mig u Kuc L pc g h v. Ou miii h ciu i fuig f fc vpm pgm i high-m fi u-ci high ch cu ig u cmp p f hi fhm f cg bf h v f cmpu. B ciuig pp 100% f L fu uci, c ciu h p pgig mig Kuc fc h v f v h i h i. I m cfi i chiv hi g bcu W Kuc! Sic, S vi h Kuc L i p K iuc i i h mbi pp, h p c ch ig iv. Th pp xp icu i c-chc pmi.th 34 iiviu I P gm vib h p i FY18, up fm 26 i FY17. T h f FY18, I P gm bcm vib muip pic pi, p cu ch h much h ih p pi i. Thi chg igific xp h vi f gm vib ihi pic pi. K, Pb, Mg Mii, Ch B 225 Luc f Lif vib vi h p. Mh G. Bvi, Gv ACHIEVING Rc FY18 m h 20h u f h p 25 h h Kuc L h chiv c. Th c icu: S f $1,042,512,000 up $42,000,000 4.2% fm FY17 puc h f 2018 $10 Gm 15.1% $20 Gm 7.4% $25 Gm 9.5% 5 C Ch 0.6% K 7.9% KY Ch B 225 1.1% Mg Mii 3.8% Pic 3 14.4% 14.3% Ch f h G Fu f $262,800,800, hich i $11,200,000 4.4% m h FY17. Piz p f $657,400,000, $28,500,000 4.5% ic. Scch ff f $613,100,000, $9,300,000 (1.5%) ic fm FY17, K f $82,800,000 (9.2%) bv FY17. M F. Smm Chi Kuc L Cpi Pic 4 4.2% il f $14,700,000 up 122.7% fm FY17. W h 3000 f u i c c h - u fic Kuc L mp - f hpig u chiv h high. FY18 i hich i h gu f ciu ucc, ciu hi gh p i FY19. Sic, M F. Smm Tm Dci Tm Dci Pi CEO Kuc L Cpi $5 Gm 16.8% 16.7 $3 Gm 2.4% $2 Gm 5.2% $1 Gm 2.4% I P 1.0% Luc f Lif 0.8% Pb 7.5% 2018 KENTUCKY LOTTERY ANNUAL REPORT 3
SCRATCH-OFF SALES Ri Scch-ff i FY18 $9.3 mii (1.5%) $613.1 mii. Th g mu f ccu h $5 pic pi, ih $174.5 mii f h ic (up 2% $3.5 mii). Th $25 pic pi h g jump i, iig $99.4 mii; hi i $24.7 mii (33%) ic fm FY17. O f h f gh h iuci f gm fmii. Fi iuc ih ic vib f h hi, h fmii h imi big gphic hich b mig h cv ic muip pic pi. Hi ic ubqu 60% fm h pviu. Thi i b TV cmmci fuig Bb Nh piig hi Pp Ef fm h mvi Ef. Ah fmi f ic, Jumb Buc, vv uig h FY. Luch i Fbu, h $25 ic Miii Jumb Buc h fi Scch-ff ic ih $1 mii p piz i c. Thi uccfu uch f i Ju ih h uch f Jumb Buc ic h $1, $2, $5 $10 pic pi. JENNIFER VASTINE M iffc Th FY18 u p i ic h mm f f h Kuc L igi mp. Jif Vi p v 29 ig f h L i h Bug Rgi piv i h Cvig, pig i M f 2018. Jif v h i i fmi - h i v h. Sh u f h mi h. Jif c bu h ccu, m h big m, cu b cu u giv i piiv. Gp, Jif. Yu mi. Th iuc Gmii uchc vig mchi i FY18. Th f f h vic fu 42-ich uchc mi hich ip 28 Scch-ff gm vib f puch. P c puch gm h vic hv h bii pic hi umb f Pb Mg Mii ic. M h 200 f h vic pc i FY18, h umb i i 475 uig FY19. F h, h $25 ic Uim Mii h m i m f ($40.8 mii), hi h $1 gm Wi 8 h m phic ic (9.1 mii). 2018 KENTUCKY LOTTERY ANNUAL REPORT 5
DRAW Gm DRAW GAME SALES CLOSED THE YEAR AT $419.1 MILLION, UP 7% ($27.6 MILLION) FROM FY17! pb: : Pb fiih h $77.9 mii, up 8% ($5.8 mii) fm h pviu FY. Whi Kuc i hv jcp i i FY18, 39 uc p mch fu f h hi-b iig umb h Pb i h gm $50,000 hi piz. K ciu hi g p f gh i FY18, iig $7 mii (9.2%) $82.8 mii. Thi i h g pcg ic f Kuc L puc f FY18, i c umb f h gm. K upc Pb bcm h hi b ig Kuc L gm, bhi Scch-ff Pic 3. Fc cibuig h ic icu h ciu ucc f h Muipi - fu, h uch f K vi h il pfm. Th p piz i i FY18; hv, h i f h gm $25,000 piz $10,000 piz i. Ov, m h 11 mii K i h $54 mii i piz. mg mii: Mg Mii jump 36.8% i FY18 $39.8 mii, $10.7 mii ic. Thi u i g p v igific jcp u uig h. Kuc i h Mg Mii jcp i, bu p h gm c piz f $1 mii i FY18. pic 3 pic 4: Pic 3, hich ciu b h m i p KLC gm, 3% ic i fm h pviu. S f h gm FY18 $149.7 mii, $4.4 mii ic. Pic 4 igh ci v h, ig 2.7% $43.5 mii. Th $1.2 mii c fm FY17. ch b 225: Ch B 225 fiih h ih $11.5 mii i, 10.7% ($1.1 mii) ic fm h pviu. Th igh p h h gm p piz f $225,000 i FY18. uc f if: Luc F Lif fiih FY18 ih $7.8 mii i. Th $23,000 ic (0.3%) fm FY17. Kuc h Luc F Lif g piz i f $1,000 f if i h, h Kuc L p h gm c piz f $25,000 f if. Th 23 Kuc p h h gm $5,000 hi piz. 5 c ch: S f h 5 C Ch gm h $6.1 mii. Thi $185,000 (2.9%) h f h gm i FY17. Sv hcm f h gm p i FY19 hp b. Th i f h gm p piz f $100,000. Th hv b fiv i f h $5,000 p I Wi piz. I FY18, h 5 C Ch gm h 1.3 mii i, iig m h $5 mii. 2018 KENTUCKY LOTTERY ANNUAL REPORT 7
bighf m m cub - $50,0 00 pb, ug. 19, 2017:! i W D R Pp W c h ic, i i $50,0 00, I iu hugh h mch i jc u p. 8. H ju 1 Y F i z i p i. $657.4 mii c m m g L i c i Th Ku hu f u h f f h bi b f v - $100,000 g cv i p, ju 19, 2017:, mb buc ju 0 0 0, 5 7 $ f gh i vi 3, 2018: pi 2 ig i v p h I m b u h M f. fig m g much, i h I ig i bu if I cu. I u v i f mg fi $30,000 ip p. fb. 22, 2018: I m h h ic. I i hi i i! I bu hc! Thi cu hv hpp b im. vi j f quic - $1,000 f if - uc f if, ug. 17, 201 7: $50,000 f ubu p h p 7: ug. 2, 201, b p hi u hv W, i Th c 0,000. I 5 $ f c i Pb iu? i, A u Th i c i i, Oh m G Dvi, u v hi h big. I i,,? I i ibif. I i, A u iu? g fmi (gup f 29 fmi mmb) - $50,000 p b v. 18, 2017: ivi 8: m f ib b. 27, 201 buc, f umb $75,000 j hip i 00 i. c Th $75,0 i mig! m h c I ju I mig ff pp I hugh cu hv bug h h ic, hpig i f hm. jic b f ig - $50,000 i big i p, fb. 8, 2018: M fi hugh, M, I u hp hi i f. 2018 KENTUCKY LOTTERY ANNUAL REPORT 9
Fuig imgii. fuig Euci. uc pc hv up $3.2 bii f cg chhip g pgm. Kuc L pc fu h KEES Schhip Pgm, h -b Cg Acc Pgm (CAP) KY Tuii G (KTG), h W-R Schhip Pgm h Du Ci Schhip Pgm. H ju f xmp f h impc m b h. Am pm mi c high ch cu Kuc u bgi ig h Kuc Euci Excc Schhip (KEES) hi fhm f high ch. Th chhip i mi-b h g u i high ch mi h much KEES m h civ. O f h fi pp u bu KEES i hi high ch cu. Th KEES pgm i fbuu! Mi C High Sch cu Am Pm. Thi i m 30h i uci, 21 cu. KEES m p u Kuc i i ff hm much. Th v h m. Pm p v h pgm. Th puh hi i h h much h civig. A h Du Ci pgm i hpig fmii, Pm. Th Du Ci chhip i h -fu pgm high ch u c vg f. Su c cg ci cu i high ch icu. Pm, Wh h Kuc L i ig f h f Kuc i hug. P ppciiv. Ei cipi/gu O KEES cipi h -fu chhip m h iffc i h ig i h g. Ei K i gu f E Kuc Uivi h Uivi f Luivi. I h b ig u-f- ch i Iii h i Mh, hich m mh p bu. M fh m h ich b i, Yu hv KEES m. Yu pic ch i Kuc. I i h cmpu u EKU immi i h pfc fi!, K i. Kig I h p g g i cg p m chhip ci ivig fc f ucc, i K. Af gui, h ci hm i h Cmmh h c hich f h g f h pgm h fi pp i 1998. Mi c-c cipi/gu Th Uivi f Kuc gu i ig h ig KEES m cg hp puh h i high ch. Kig h m high GPA gi m m KEES m f cg p m miv, C-C i. I p h i-, I ig h, bu h KEES m fm m igh A g i high ch fii puh m i h ici, i h Luivi iv. Af fiihig h g UK, C-C hm i Kuc uch h c i cmmuici. Ph cu f KY Db Fiv 2018 KENTUCKY LOTTERY ANNUAL REPORT 11
H chg Dmi Dihm uivi f i xig, M Kuc L-fu chhip hv chg m uivi jui Gg, Wih h hp f h Gbb g pig uivi i uivi, fu, I c fcu m I i hi I b b g cg. xcig h cu- Th Kuc L fu gv m h i f ig chc. bu h I i p f m uci. if, I cu b m hfu. A u fm -icm, I m hfu h KY L f pviig h fu m g cg. Kuc Bigh Sig Hm I v h UK gig b u f m gu, cmig fm icm fmi. Rcivig h ii fu i hp pu m mi. Svh uivi f uc phm ipc, Mih imm b cg jui ci, Dzugh gv b cg i ichm, I m xm gfu f h KEES fuig - h u much! Jb. bc i i cg jui puvi, I c b uccfu ihu h c uci. Th L-fu g hv hp m hu f h puu u m! 2018 KENTUCKY LOTTERY ANNUAL REPORT 13
THE RIGHT WAY TO RUN A BUSINESS- CORPORATE SOCIAL Rpibii Th Kuc L i fuig mmb f h Kuc Cuci Pbm Gmbig (KYCPG). Th cuci fm i 1995 uc h cmmui bu pbm cmpuiv gmbig, ff iig cu i i ig gmbig i ff fici ic f m h ig hp. Mg i cjuci ih h KYCPG, h 1-800-GAMBLER hi i ff 24/7 b pfi i i pbm cmpuiv gmbig iu. A ih f gmbig pbm c c h umb f ifmi, guic f m pgm Gmb Amu. If pp p ih m f m ifmi, h c x 1-800-GAMBLER ic ih cu. Th c g h bi.. cm, cic h P Rpib bu h bm f h pg, b i h h c cuc i ch ih cu. Th vic vib 24 hu, v. Th Kuc L mi h US hig h pib gmbig cifici ff i h i iu. P Rpib bib: Th Kuc L ciu h P Rpib bib cmpig i FY18. Bib c h Cmmh h h mg g ih h 1-800-GAMBLER ph umb. I, 52 bib m h 12.8 mii impi. Th cmpig i b ciu i FY19. KLC RECOGNIZED 24 TH STRAIGHT YEAR FOR Fici xcc F 24 ccuiv, h KLC h chiv h high fm f cgii i gvm ccuig fici pig. Th KLC c gi i FY18 h Cific f Achivm f Excc i Fici Rpig fm h Gvm Fic Offic Acii f h Ui S C. Th cgiz gizi h m pii f fu icu c cmmuic hi fici. Th KLC h c i Nh Amic civ hi, h U.S. h civ hi igi m f h h KLC. FINANCIAL STATEMENTS Kuc L Cpi STATEMENTS OF NET POSITION Ju 30, 2018 2017 ( i hu) ASSETS Cu A Ch ch quiv 2018 $17,682 2017 $20,149 Ch ch quiv, ui 2,600 2,600 Ivm fi vu, cu pi 1,836 2,159 Accu civb, 31,628 24,692 Ppi PP Lic, cu pi 67 67 Oh 948 888 T cu 54,761 50,555 Ncu A Ivm fi vu, cu pi 10,083 11,681 Ppi PP Lic, cu pi 45 112 Cpi, 5,441 5,314 Dpi ih Mui-S L Acii 5,182 4,848 T cu 20,751 21,955 T 75,512 72,510 LIABILITIES Cu Libiii Accu pb, ccu xp, cmp bc, cu pi 5,981 6,332 Du h Cmmh f Kuc 6,131 2,555 Eim piz ibii, cu pi 31,061 29,954 T cu ibiii 43,173 38,841 Ncu Libiii Accu cmp bc, cu pi 1,136 1,167 Eim piz ibii, cu pi 12,907 13,493 T cu ibiii 14,043 14,660 T ibiii 57,216 53,501 NET POSITION N ivm i cpi 5,441 5,314 Uic 12,855 13,695 N pii $18,296 $19,009 Kuc L Cpi STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION F h Y E Ju 30, 2018 2017 ( i hu) Opig vu 2018 2017 I gm $613,134 $603,823 D gm 419,126 391,436 il i p gm 10,252 5,242 L i ic pvi piz (7,309) (13,541) T pig vu 1,035,203 986,960 Dic c Piz xp I gm 418,862 405,888 D gm 230,337 219,084 il i p gm 8,163 3,859 T piz xp 657,362 628,831 Pm i 61,138 61,672 D v xp 11,370 10,094 I ic c 8,474 8,871 T ic c 738,344 709,468 Opig vu f ic c 296,859 277,492 Opig xp Aviig pmi 10,268 10,074 Si, g, bfi 15,318 14,831 Cc pfi vic 2,374 2,264 Dpcii 1,186 1,312 Oh g miiiv 1,769 1,672 T pig xp 30,915 30,153 Opig icm 265,944 247,339 N-pig vu (xp) Pm h Cmmh f Kuc (266,417) (248,571) Ivm icm (xp) 176 (129) I xp (651) (736) Oh icm 235 274 T -pig xp (266,657) (249,162) Chg i pii (713) (1,823) N pii bgiig f 19,009 20,832 N pii f $18,296 $19,009 Th Cpi h p GASB Sm 72, hich qui ivm b p fi vu, uig i c f icm f ppxim $713 i 2018 c i icm f $958 i 2017, h cmp h hiic c mh. Th bv fici ifmi iv fm h u fici m. Th fici ui f h Ju 30, 2018 pfm b Hig, Shmi & Cmp, P.S.C. A cp f h cmp u p c b..cm bi b iig: Kuc L Cpi, PR Dp., 1011 W Mi S, Luivi, KY 40202 b cig (502) 560-1677. * Pm h Cmmh f Kuc icu bh pm m pm ccu f f h Cmmh f Ju 30, 2018. 2018 KENTUCKY LOTTERY ANNUAL REPORT 15
KLC BOARD OF DIRECTORS ( f 6/30/18) M F. Smm Chi J Bu Vic Chi Ai B Kuc S Tu T Rich Dic Li J. H Dic R Ah B S Dic Bi Schu Dic KLC EXECUTIVE STAFF: TOM DELACENSERIE Pi & CEO MARTY GIBBS Excuiv Vic Pi & COO HOWARD B. KLINE Excuiv Vic Pi & CFO BILL HICKERSON Si Vic Pi f Scui MARY HARVILLE Si Vic Pi, G Cu & Cp Sc GARY RUSKOWSKI Si Vic Pi f Ifmi Tchg & CIO CHIP POLSTON Si Vic Pi f Cmmuici, Pubic Ri & Sci Rpibii BRENDA WILKERSON Vic Pi f IT Opi TH MORRIS Vic Pi f Sm Dvpm RICK KELLEY Vic Pi f Fic Amiii MAGGIE GARRISON Vic Pi Cp C PETE RAMSEY Vic Pi f S MICHELE SULLIVAN Vic Pi f Hum Ruc EDIE FRAKES Vic Pi f Mig F M ifmi: HEADQUARTERS: 1011 W Mi S Luivi, KY 40202 (502) 560-1500 BLUEGRASS OFFICE Fu Bui C 961 B S, Sui 110 Lxig, KY 40509 (859) 299-0684 (606) 886-9883 @KYLOTTERY