michigan lottery 2000 annual report - som - state of … · iscal year 2000 proved to be an...

C O M P U L S I V E G A M B L I N G

L o t t e ry and other games of chance are preva l e n tin Michigan and wo rl d w i d e. In Michigan at least 75 percent of our adult residentsh ave purchased a Lottery ticket in the last12 months.

Fo rt u n a t e l y, the vast majority of theseLottery enthusiasts have played responsiblyand done so in the spirit the games arei n t e n d e d . H oweve r, as with any fo rm ofg a m bling, abuses can and do occur.

At the Michigan Lottery, we believe in offe ri n ga fun product at a fair price, all in the nameof benefiting a worthy cause.The Lottery isentertaining, it’s a game of chance, and it’sf u n . The Lottery is not, and was neve rintended to be, a stepping stone to success.It’s not a good investment, not a retirementplan, and was certainly never meant toreplace hard wo rk and ambition as ameans to a better life.

Because the Lottery understands there are those who may need support in under-standing the diffe r e n c e, a n swers are ava i l a bl e. C o m p u l s i ve gambling can betreated, and help is just a phone call away.

If you would like more info rmation aboutp r o blem gambling and the programs ava i l a bl e,call the Michigan Problem Gambling Helplineat 1.800.270.7117.

In fiscal 2000 Michigan Lottery prov i d e d $ 1million for compulsive gambling progra m si n c l u d i n g the 800 helpline.

C o m p u l s i ve Gambling Helpline1 . 8 0 0 . 2 7 0 . 7 1 1 7

P rinted under the authority of P. A . 239,1972 as amended.11,500 copies $11,291.00, $.98 per copy.

*3737 Lottery Annual Report rev 5/9/01 2:26 PM

200 0 M i ch igan Bu reau o f S t a t e Lo t t e r y

A N N U A L R E P O R T

While the Lottery is excited to report our sales accomplishments over the

past ye a r, we are most excited about the $618.5 million in funds we

transferred to the state School Aid Fund in fiscal 2000. Even though the

Lottery’s dollars are a small part of the state’s education funding needs,

we are very proud of our role in helping the state invest more in the

future of Michigan’s children.

M i c h i g a n ’s schoolchildren weren’t the only winners in fiscal 2000.

Players all across the state got a taste of Lottery luck, collecting over

$920 million in cash and pri zes and creating 17 new Michigan Lottery

multimillionaires! Lottery retailers shared in over $120 million in commissions.

The Lottery enhanced its retailer commission structure in fiscal 2000, with

the implementation of a 7 percent sales commission for the sale of $2

instant games – paying an additional $2.5 million in commissions over the

typical 6 percent – and a bonus commission ex p a n s i o n .

As we enter our 29t h year of operation, we have a lot of accomplishments

to look back on, but even more exciting changes to look forward to in

the future.We are looking forward to working together with our retailers

to bring even more money to Michigan’s schoolchildren, while keeping

our games fresh and entertaining for our players.

1

*3737 Lottery Annual Report rev 5/9/01 2:27 PM Page 3

iscal year 2000 proved to be an exciting one for the Michigan

took hold of the state when the jackpot soared to

entire jackpot run – from March 7, 2000 to May 9, 2000 – totaled a

whopping $83,294,843 in Michigan alone! Larry and Nancy Ross of

percent in fiscal 2000.

F Lottery, boasting

The excitement began in February when the Lottery kicked off the

new millennium with its new Michigan Rolldown game.

Lottery players all across the state had been asking

for a new game that offered more ways to win

and the Lottery listened! Michigan Rolldown

replaced the Lottery’s Cash 5 game, w h i c h

debuted in March 1992. Michigan Rolldown

has proven to be very popular amongst

players, pushing sales for the past year to

over $44 million

Just three short months later, Big Game feve r

record heights. The $363 million jackpot for the

May 9 drawing went down in the record books as

the largest Lottery jackpot in North American history.Ticket sales for the

Shelby Township won half of that huge jackpot, collecting a one-time

lump-sum payment of $90,302,950 (before taxes).The ticket sales from

that jackpot run helped raise Big Game ticket sales in Michigan by 4.2

over $1.69 billion in overall ticket sales!

– that’s a 55 percent

increase over Cash 5 sales in the previous year.

Don Gilmer L o t t e ry Commissioner

In addition to Michigan Rolldown and The Big Game,

instant ticket sales were also very strong this past year.

The Lottery introduced 59 new instant games in fiscal

2000. That wide variety of choices for players led to a

2.1 percent increase in instant ticket sales.

iscal year 2000 proved to be an exciting one for the Michigan

Lottery, boasting over $1.69 billion in overall ticket sales!

The excitement began in February when the Lottery kicked off the

new millennium with its new Michigan Rolldown game.

Lottery players all across the state had been asking

for a new game that offered more ways to win

and the Lottery listened! Michigan Rolldown

replaced the Lottery’s Cash 5 game, w h i c h

debuted in March 1992. Michigan Rolldown

has proven to be very popular amongst

players, pushing sales for the past year to

over $44 million – that’s a 55 percent

increase over Cash 5 sales in the previous year.

Just three short months later, Big Game feve r

took hold of the state when the jackpot soared to

record heights. The $363 million jackpot for the

May 9 drawing went down in the record books as

the largest Lottery jackpot in North American history.Ticket sales for the

entire jackpot run – from March 7, 2000 to May 9, 2000 – totaled a

whopping $83,294,843 in Michigan alone! Larry and Nancy Ross of

Shelby Township won half of that huge jackpot, collecting a one-time

lump-sum payment of $90,302,950 (before taxes).The ticket sales from

that jackpot run helped raise Big Game ticket sales in Michigan by 4.2

percent in fiscal 2000.

In addition to Michigan Rolldown and The Big Game,

instant ticket sales were also very strong this past year.

The Lottery introduced 59 new instant games in fiscal

2000. That wide variety of choices for players led to a

2.1 percent increase in instant ticket sales.

F

Don GilmerL o t t e ry Commissioner


While the Lottery is excited to report our sales accomplishments over the

1

past ye a r, we are most excited about the $618.5 million in funds we

transferred to the state School Aid Fund in fiscal 2000. Even though the

Lottery’s dollars are a small part of the state’s education funding needs,

we are very proud of our role in helping the state invest more in the

future of Michigan’s children.

M i c h i g a n ’s schoolchildren weren’t the only winners in fiscal 2000.

Players all across the state got a taste of Lottery luck, collecting over

$920 million in cash and pri zes and creating 17 new Michigan Lottery

multimillionaires! Lottery retailers shared in over $120 million in commissions.

The Lottery enhanced its retailer commission structure in fiscal 2000, with

the implementation of a 7 percent sales commission for the sale of $2

instant games – paying an additional $2.5 million in commissions over the

typical 6 percent – and a bonus commission ex p a n s i o n .

As we enter our 29t h year of operation, we have a lot of accomplishments

to look back on, but even more exciting changes to look forward to in

the future.We are looking forward to working together with our retailers

to bring even more money to Michigan’s schoolchildren, while keeping

our games fresh and entertaining for our players.

P h o t o : Travel Michigan


M I S S I O N S T A T E M E N T

M I S S I O N S T A T E M E N T


P h o t o : Travel Michigan

more than they can afford to lose.The Michigan Lottery proudly contri bu t e s

$1 million eve ry year to support the Michigan Department of Commu n i t y

H e a l t h ’s (MDCH) compulsive gambling progra m s.This money is used to

fund many different MDCH progra m s, including a toll-free helpline nu m b e r

(1-800-270-7117), which is printed on each and eve ry Michigan Lottery

t i cket and the Lottery ’s point-of-sale materi a l s.

I n t e grity is ve ry important to the Lottery and its staff. All on-line game

d rawings are conducted under the supervision of a Michigan Lottery

d rawing manager and an independent auditor. The Lottery draw i n g

equipment is kept under tight security at all times and is tested befo r e

and after each drawing is conducted.

A d d i t i o n a l l y, rigorous security measures are taken by Lottery officials

d u ring the printing of instant games. Pollard Banknote, the Lottery ’s

instant ticket printer in Ypsilanti, Michigan, prints the instant game ticke t s

in an environment monitored by camera s, video cassette recorders and

s e c u rity guards.Pollard also uses a process that randomly scatters winning

t i ckets throughout a printing run to ensure an equitable distri bution of

winning tickets across the state.

The Michigan Lottery has enjoyed great success over the last 28 ye a r s,

made possible only by the trust and loyalty of its playe r s. Maintaining that

p u blic trust through game integrity remains a top pri o rity for the Lottery.

• To maximize net revenues to supplement state educationprograms;

• To provide fun and entertaining games of chance;a n d

• To operate all games and Bureau functions with nothingless than total integrity.

5


t h

Since 1974, Lottery profits have helped school-age children in the Great

the introduction of more than one new ticket per week in fiscal 2000.

When Michigan’s citizens voted by a 2-to-1

constitution and create the Michigan Lottery, it was created with three goals in mind:

O

4

ver the past 28 ye a r s, the Michigan Lottery has generated over $9.8

billion in net funds for kindergarten through 12 grade public

education in Michigan. The needs of Michigan’s schools have changed

d rastically since 1972, and the amount of money the Lottery tra n s fe r r e d

to the state School Aid Fund in fiscal 2000 is almost ten times as much a s

what was tra n s ferred in fiscal year 1974 (our first full year of opera t i o n ) .

L a kes State gain the education and skills they need to realize any career

g o a l . Some of those students even go on to become public school

teachers themselve s !

The Michigan Lottery knows that in this fast-paced, modern - d ay wo rl d ,

p l ayers are looking for new and exciting games that offer more ways to

win and bigger pri ze s. O ver the past four years The Big Game has

become wildly popular with Michigan Lottery playe r s, turning eight luck y

Michigan residents into mu l t i m i l l i o n a i r e s !

To make the Lottery ’s game lineup more exciting for playe r s, a new on-line

game was introduced in Fe b ru a ry 2000. Michigan Rolldown replaced the

lagging Cash 5 game, and in the past ye a r, Michigan Rolldown has

awarded over $16 million in pri zes to lucky players all over Michigan.

A d d i t i o n a l l y, the Lottery ’s instant game lineup continued to expand, with

While the majority of players enjoy the entertainment value of the Lottery ’s

g a m e s, unfo rt u n a t e l y, there is a small percentage of players who gambl e

margin in 1972 to amend the state’s

ver the past 28 ye a r s, the Michigan Lottery has generated over $9.8

billion in net funds for kindergarten through 12t h grade public

education in Michigan. The needs of Michigan’s schools have changed

d rastically since 1972, and the amount of money the Lottery tra n s fe r r e d

to the state School Aid Fund in fiscal 2000 is almost ten times as much a s

what was tra n s ferred in fiscal year 1974 (our first full year of opera t i o n ) .

Since 1974, Lottery profits have helped school-age children in the Great

L a kes State gain the education and skills they need to realize any career

g o a l . Some of those students even go on to become public school

teachers themselve s !

The Michigan Lottery knows that in this fast-paced, modern - d ay wo rl d ,

p l ayers are looking for new and exciting games that offer more ways to

win and bigger pri ze s. O ver the past four years The Big Game has

become wildly popular with Michigan Lottery playe r s, turning eight luck y

Michigan residents into mu l t i m i l l i o n a i r e s !

To make the Lottery ’s game lineup more exciting for playe r s, a new on-line

game was introduced in Fe b ru a ry 2000. Michigan Rolldown replaced the

lagging Cash 5 game, and in the past ye a r, Michigan Rolldown has

awarded over $16 million in pri zes to lucky players all over Michigan.

A d d i t i o n a l l y, the Lottery ’s instant game lineup continued to expand, with

the introduction of more than one new ticket per week in fiscal 2000.

While the majority of players enjoy the entertainment value of the Lottery ’s

g a m e s, unfo rt u n a t e l y, there is a small percentage of players who gambl e

When Michigan’s citizens voted by a 2-to-1margin in 1972 to amend the state’sconstitution and create the Michigan Lottery,it was created with three goals in mind:

O

4


• To maximize net revenues to supplement state education programs;

• To providefun and entertaining games of chance; a n d

• To operate all games and Bureau functions with nothing less than total integrity.

more than they can afford to lose.The Michigan Lottery proudly contri bu t e s

$1 million eve ry year to support the Michigan Department of Commu n i t y

H e a l t h ’s (MDCH) compulsive gambling progra m s.This money is used to

fund many different MDCH progra m s, including a toll-free helpline nu m b e r

(1-800-270-7117), which is printed on each and eve ry Michigan Lottery

t i cket and the Lottery ’s point-of-sale materi a l s.

I n t e grity is ve ry important to the Lottery and its staff. All on-line game

d rawings are conducted under the supervision of a Michigan Lottery

d rawing manager and an independent auditor. The Lottery draw i n g

equipment is kept under tight security at all times and is tested befo r e

and after each drawing is conducted.

A d d i t i o n a l l y, rigorous security measures are taken by Lottery officials

d u ring the printing of instant games. Pollard Banknote, the Lottery ’s

instant ticket printer in Ypsilanti, Michigan, prints the instant game ticke t s

in an environment monitored by camera s, video cassette recorders and

s e c u rity guards.Pollard also uses a process that randomly scatters winning

t i ckets throughout a printing run to ensure an equitable distri bution of

winning tickets across the state.

The Michigan Lottery has enjoyed great success over the last 28 ye a r s,

made possible only by the trust and loyalty of its playe r s. Maintaining that

p u blic trust through game integrity remains a top pri o rity for the Lottery.

5


T H E L O T T E R Y A N D T H E S T A T E S C H O O L A I D F U N D

U n fo rt u n a t e l y, Lottery funding for education is frequently misunderstood.

S eve ral things contri bute to the confusion surrounding the Lottery ’s

support of schools, but the two most popular misconceptions are: (a)

people don’t realize how expensive it actually is to educate Michigan’s

schoolchildren, and (b) many Michigan residents assume that the

state Lottery provides the majority of the funding for schools. M i c h i g a n

spends in total over $9,000 per pupil and the Lottery ’s contri bution is more

than $360 of that amount.

In fiscal year 2000, the Lottery generated more than $618 million in reve nu efor the state School Aid Fund. On average, that would be approximately$11.9 million going into the state School Aid Fund eve ry week, or $1.6 millionper day! Every time a Lottery player purchases a ticket, an average of 35to 38 cents of that dollar is contributed to the state School Aid Fund.

That dollar buys the player a chance to win a great cash prize, while atthe same time helping another Michigan school-age child get a qualitypublic education.That is definitely a dollar well spent!

9


and other taxes.

T he Michigan Lottery was created in 1972 to help support

kindergarten through 12th grade public education in Michigan.

When the Lottery started, all of its net reve nue went into the state’s genera l

f u n d . By directing the reve nues into the general fund, there was no guara n t e e

that all of that money would actually be used to support public education.

That is why the Michigan legislature amended the Lottery Act in 1981 to

specifically “ e a rm a rk ” funds for education. Since 1981, all Lottery

revenue has been transferred specifically to the state School Aid Fund

to help support K-12 public education in Michigan.

The state School Aid Fund is a constitutionally-protected, restri c t e d

fund, which means the money can only be used for education. T h e

G ove rn o r ’s budget proposes, and the Michigan Legislature appropri a t e s,

the state School Aid Fund reve nues to individual school distri c t s

through a foundation grant process, based upon the distri c t ’s pupil

count and several other factors. Each school district then determines

h ow the money will be spent based upon need. Some general

c a t e g o ries of spending include instruction, instructional suppor t ,

a d m i n i s t ration, operations and maintenance

and

and tra n s p o rt a t i o n . Within each of these

c a t e g o ries there may be expenditures

education property tax, local

p r o p e rt y t a xe s, as well as cigarette, liquor

for salari e s, benefits, supplies

purchased services.

Lottery revenues comprise roughly

four percent of the total state and

local spending for K-12 education.

The other 96 percent of the money

comes from federal funds, the state’s

sales and use tax, earmarked income

tax, state

8

he Michigan Lottery was created in 1972 to help support

kindergarten through 12th grade public education in Michigan.

When the Lottery started, all of its net reve nue went into the state’s genera l

f u n d . By directing the reve nues into the general fund, there was no guara n t e e

that all of that money would actually be used to support public education.

That is why the Michigan legislature amended the Lottery Act in 1981 to

specifically “ e a rm a rk ” funds for education. Since 1981, all Lottery

revenue has been transferred specifically to the state School Aid Fund

to help support K-12 public education in Michigan.

The state School Aid Fund is a constitutionally-protected, restri c t e d

fund, which means the money can only be used for education. T h e

G ove rn o r ’s budget proposes, and the Michigan Legislature appropri a t e s,

the state School Aid Fund reve nues to individual school distri c t s

through a foundation grant process, based upon the distri c t ’s pupil

count and several other factors. Each school district then determines

h ow the money will be spent based upon need. Some general

c a t e g o ries of spending include instruction, instructional suppor t ,

a d m i n i s t ration, operations and maintenance

and tra n s p o rt a t i o n . Within each of these

c a t e g o ries there may be expenditures

for salari e s, benefits, supplies and

purchased services.

Lottery revenues comprise roughly

four percent of the total state and

local spending for K-12 education.

The other 96 percent of the money

comes from federal funds, the state’s

sales and use tax, earmarked income

tax, state education property tax, local

p r o p e rt y t a xe s, as well as cigarette, liquor

and other taxes.

T

8


U n fo rt u n a t e l y, Lottery funding for education is frequently misunderstood.

S eve ral things contri bute to the confusion surrounding the Lottery ’s

support of schools, but the two most popular misconceptions are: (a)

people don’t realize how expensive it actually is to educate Michigan’s

schoolchildren, and (b) many Michigan residents assume that the

state Lottery provides the majority of the funding for schools. M i c h i g a n

spends in total over $9,000 per pupil and the Lottery ’s contri bution is more

than $360 of that amount.

In fiscal year 2000, the Lottery generated more than $618 million in reve nu e for the state School Aid Fund. On average, that would be approximately $11.9 million going into the state School Aid Fund eve ry week, or $1.6 million per day! Every time a Lottery player purchases a ticket, an average of 35 to 38 cents of that dollar is contributed to the state School Aid Fund.

That dollar buys the player a chance to win a great cash prize, while at

public education.That is definitely a dollar well spent! the same time helping another Michigan school-age child get a quality

9


G A M E S A N D P R O M O T I O N S

The fun starts from scratch with Michigan

Lottery instant game tickets! The variety in

the Lottery ’s instant game lineup continu e d

to grow this year, as 59 new games were

introduced statewide. That winning lineup

included three different $10 instant game

tickets – “Casino Nights,” “Instant Million”

and “Millionaire Pa rt y ” – all of which

o f fered top pri zes of $1,000,000 each!

Other popular instant ticket sellers this

year included the $5 “High Score,” the $2

“Wild Time” and the $1 “Go Fish.” “Scratch

off” tickets brought in over $643 million in

sales during fiscal 2000, a 2.1 percent

increase over last year’s sales. New play

styles and lots of winning tickets ensure

that the Lottery ’s instant games will

remain fun and entertaining for playe r s

long into the future.

The Lottery made a change to its on-line

game lineup by introducing a new game

called Michigan Rolldown in Fe b ru a ry

2 0 0 0 . This new game replaced Cash 5

which debuted in March 1992. M i c h i g a n

R o l l d own offers players better odds and

more ways to win. It is also a depart u r e

from the Lottery ’s other games in that it

offers the exciting new “roll down” feature,

ensuring that all of the prize money is paid

out each and every night. In the event that

no one matches all five numbers drawn, the prize money is rolled down to

the players who match four of five numbers, giving them an even bigger

1 3


This year the Michigan Lottery posted ticket sales of $1.69 billion.

instant tickets and Michigan Rolldown.

Michigan Lottery’s Big Game jackpot reached a record $363 million for

the May 9, 2000 drawing! Not only was this jackpot the largest in

Michigan history, but it was also the largest in North American history.

The Big Game truly lived up to its name not only in the enormous

Big Game jackpot started at $5 million – to May 9 – when the jackpot hit

that amount, roughly $31 million was transferred to the state School Aid

total sales of over $188 million in fiscal 2000, and an increase of

4.2 percent over last year’s sales.

a

T

1 2

he Michigan Lottery has seen a lot of changes to its game lineup

since the introduction of the 50-cent green game ticket in 1972.

Those changes have supplied Michigan Lottery players with a wide

variety of fun and exciting choices and, in turn, made the Lottery the

success it is today.

Leading the pack in sales were solid performances by The Big Game,

Fiscal year 2000 was not just big, it was huge for the Lottery ’s Big

Game. Lottery terminals at retailer locations all across Michigan were

cranking out Big Game tickets at a rapid rate in early May 2000 as the

jackpot amount, but in ticket sales as well. From March 7 – when The

$363 million – ticket sales for that period of time were $83,294,843! Of

Fund. That jackpot run made a major contribution to The Big Game’s

The Big Game continues to be a player

favo rite

component of the Lottery ’s winning

lineup for the foreseeable future. Big

Game drawings are conducted twice

and will remain a key

week, Tu e s d ays and Fri d ay s, at

11 p.m., with drawings broadcast live

from Atlanta.

he Michigan Lottery has seen a lot of changes to its game lineup

since the introduction of the 50-cent green game ticket in 1972.

Those changes have supplied Michigan Lottery players with a wide

variety of fun and exciting choices and, in turn, made the Lottery the

success it is today.

This year the Michigan Lottery posted ticket sales of $1.69 billion.

Leading the pack in sales were solid performances by The Big Game,

instant tickets and Michigan Rolldown.

Fiscal year 2000 was not just big, it was huge for the Lottery ’s Big

Game. Lottery terminals at retailer locations all across Michigan were

cranking out Big Game tickets at a rapid rate in early May 2000 as the

Michigan Lottery’s Big Game jackpot reached a record $363 million for

the May 9, 2000 drawing! Not only was this jackpot the largest in

Michigan history, but it was also the largest in North American history.

The Big Game truly lived up to its name not only in the enormous

jackpot amount, but in ticket sales as well. From March 7 – when The

Big Game jackpot started at $5 million – to May 9 – when the jackpot hit

$363 million – ticket sales for that period of time were $83,294,843! Of

that amount, roughly $31 million was transferred to the state School Aid

Fund. That jackpot run made a major contribution to The Big Game’s

total sales of over $188 million in fiscal 2000, and an increase of

4.2 percent over last year’s sales.

The Big Game continues to be a player

favo rite and will remain a key

component of the Lottery ’s winning

lineup for the foreseeable future. Big

Game drawings are conducted twice

a week, Tu e s d ays and Fri d ay s, at

11 p.m., with drawings broadcast live

from Atlanta.

T

1 2


no one matches all five numbers drawn, the prize money is rolled down to

the players who match four of five numbers, giving them an even bigger

The fun starts from scratch with Michigan

Lottery instant game tickets! The variety in

the Lottery ’s instant game lineup continu e d

to grow this year, as 59 new games were

introduced statewide. That winning lineup

included three different $10 instant game

tickets – “Casino Nights,” “Instant Million”

and “Millionaire Pa rt y ” – all of which

o f fered top pri zes of $1,000,000 each!

Other popular instant ticket sellers this

year included the $5 “High Score,” the $2

“Wild Time” and the $1 “Go Fish.” “Scratch

off” tickets brought in over $643 million in

sales during fiscal 2000, a 2.1 percent

increase over last year’s sales. New play

styles and lots of winning tickets ensure

that the Lottery ’s instant games will

remain fun and entertaining for playe r s

long into the future.

The Lottery made a change to its on-line

game lineup by introducing a new game

called Michigan Rolldown in Fe b ru a ry

2 0 0 0 . This new game replaced Cash 5

which debuted in March 1992. M i c h i g a n

R o l l d own offers players better odds and

more ways to win. It is also a depart u r e

from the Lottery ’s other games in that it

offers the exciting new “roll down” feature,

ensuring that all of the prize money is paid

out each and every night. In the event that

1 3

awarded $500 cash pri zes to winners for a six-week

p e ri o d , and a $25,000 grand pri ze drawing at the

end of the promotion. Both promotions we r e

a huge hit with players throughout

the state.

This past year the Lottery also

said goodbye to one of its regular

second-chance offerings – the “Road to Riches” television game show

on which six contestants competed for pri zes up to $50,000 and

C a ri bbean cru i s e s. The show debuted 11 years ago and was initially

developed to help the Lottery promote its instant game lineup. As the

number of instant ticket introductions has grown from between 10 and 20

per year to almost 60, the effectiveness of “Road to Riches” in promoting

this game category diminished, prompting the Lottery to cancel the show.

1 5


win! Sales for the new Michigan Rolldown game topped $33 million in just

1 4

seven months of sales, contributing to a whopping 55 percent increase

over Cash 5 sales from the previous year! Drawings for Michigan

Rolldown are held Monday through Saturday at 7:28 p.m.

The Lottery’s Daily 3 and Daily 4 Games continue to

be ve ry popular among playe r s. Despite the

increased competition the Daily Games saw

from commercial casinos in Detroit in fiscal

2000, the games still made an impressive

s h owing with $416.8 million and $284.7

million in sales, respective l y. The Daily

Games have proven to be a tried and true

product for the Lottery since their inception

in the late 70s and early 80s. P l ayers pick three (Daily 3) and four (Daily 4)

numbers from 0 to 9 for a chance to win set prizes up to $500 and

$5,000.Daily Game drawings are conducted Monday through Saturday

at 12:59 p.m.and 7:28 p.m.

The Michigan Lotto game has been a Michigan Lottery mainstay for the

past 16 ye a r s. Lotto has been through many changes over the ye a r s.

P l ayers choose six numbers from a pool of 49 for a chance to win

mu l t imillion-dollar jackpots! Michigan Lotto ticket sales totaled over $106

m i l l i o n this ye a r, with jackpots as high as $21.2 million. D rawings are

conducted on We d n e s d ays and Saturdays at 7:28 p. m .

Keno rounds out the Lottery ’s lineup, offe ring a top pri ze of $250,000

and drawings eve ry Monday, Tu e s d ay, T h u r s d ay and Fri d ay. In addition

to our product lineup, the Lottery offers a number of second-chance

swe e p s t a kes that allow players to use non-winning tickets for a chance

to win cash and pri ze s. This past year the Lottery offered two diffe r e n t

second-chance promotions. The “ B o o Koo Cash” second-chance

swe e p s t a kes took place in April and May, awarding cash pri zes ra n g i n g

from $1,500 to $10,000 each week for four we e k s. In July and August, the

L o t t e ry rolled out the “Big Hit” second-chance swe e p s t a ke s, which

win! Sales for the new Michigan Rolldown game topped $33 million in just

seven months of sales, contributing to a whopping 55 percent increase

over Cash 5 sales from the previous year! Drawings for Michigan

Rolldown are held Monday through Saturday at 7:28 p.m.

The Lottery’s Daily 3 and Daily 4 Games continue to

be ve ry popular among playe r s. Despite the

increased competition the Daily Games saw

from commercial casinos in Detroit in fiscal

2000, the games still made an impressive

s h owing with $416.8 million and $284.7

million in sales, respective l y. The Daily

Games have proven to be a tried and true

product for the Lottery since their inception

in the late 70s and early 80s. P l ayers pick three (Daily 3) and four (Daily 4)

numbers from 0 to 9 for a chance to win set prizes up to $500 and

$5,000.Daily Game drawings are conducted Monday through Saturday

at 12:59 p.m.and 7:28 p.m.

The Michigan Lotto game has been a Michigan Lottery mainstay for the

past 16 ye a r s. Lotto has been through many changes over the ye a r s.

P l ayers choose six numbers from a pool of 49 for a chance to win

mu l t imillion-dollar jackpots! Michigan Lotto ticket sales totaled over $106

m i l l i o n this ye a r, with jackpots as high as $21.2 million. D rawings are

conducted on We d n e s d ays and Saturdays at 7:28 p. m .

Keno rounds out the Lottery ’s lineup, offe ring a top pri ze of $250,000

and drawings eve ry Monday, Tu e s d ay, T h u r s d ay and Fri d ay. In addition

to our product lineup, the Lottery offers a number of second-chance

swe e p s t a kes that allow players to use non-winning tickets for a chance

to win cash and pri ze s. This past year the Lottery offered two diffe r e n t

second-chance promotions. The “ B o o Koo Cash” second-chance

swe e p s t a kes took place in April and May, awarding cash pri zes ra n g i n g

from $1,500 to $10,000 each week for four we e k s. In July and August, the

L o t t e ry rolled out the “Big Hit” second-chance swe e p s t a ke s, which

1 4


awarded $500 cash pr

p e ri o d ,

to a six-week

a huge hit with players throughout

the state.

on up

this game category diminished, prompting the Lottery to cancel the show.

1 5

i zes winners for

and a $25,000 grand pri ze drawing at the

end of the promotion. Both promotions we r e

This past year the Lottery also

said goodbye to one of its regular

second-chance offerings – the “Road to Riches” television game show

which six contestants competed for pri zes to $50,000 and

C a ri bbean cru i s e s. The show debuted 11 years ago and was initially

developed to help the Lottery promote its instant game lineup. As the

number of instant ticket introductions has grown from between 10 and 20

per year to almost 60, the effectiveness of “Road to Riches” in promoting


W I N N E R S

won $200,000 in the “High Score” instant game; a n dKaren Vincent of Holly, who raked in a cool $250,000 inthe “ L i fe In The Cash Lane” instant game. These winners, like many other instant ticket winners, put theirwinnings to good use with plans for special va c a t i o n s, paying bills, starting college funds for childrenand grandchildren and buying new homes and vehicles.

Daily 3 & 4 players weren’t far behind in pri ze s, collecting over $341 millioncombined. Daily Game players all have different ways of choosing theirfavorite numbers. Whether it be based on birthdays, anniversaries orother special dates, they all have certain numbers they rely on to bringthem good luck. Among the highest Daily Game payouts this year wasthe Daily 3 number 7-1-1, which was drawn on October 27, 1999 in theevening drawing.The Lottery paid out almost $2.5 million in winnings inthat single drawing, amounting to more than 339 percent of the salesfor that drawing! Not to be outdone by the Daily 3 Game, the Daily 4Game also had a big payout this year as we l l .The Daily 4 number 1-0-1-2was drawn on March 11, 2000 in the evening draw i n g . The winnings paidout on this drawing were over $3.7 million, amounting to over 555 percent of the sales for that draw i n g !

The Big Game truly lived up to its name for winners in fiscal 2000! TheBig Game saw an increase in prize payouts over last year, with over$130 million awarded to lucky players across the state. The Big Gamebecame the focus of national attention in May 2000 when the jackpotswelled to a record-shattering $363 million for the May 9, 2000 drawing!The huge jackpot unseated the July 1998 Powerball jackpot of $295.7million to win the honor of largest jackpot in North American history.

The most exciting news came the day after the May 9 drawing when itwas announced that two lucky winners were holding jackpot-winning ticke t s– one from Michigan and the other from Illinois. At a press conference onMay 12, 2000, Larry and Nancy Ross of Shelby Township announced tothe wo rld that they were Michigan’s newest mu l t i m i l l i o n a i r e s, collectingtheir one-time, lump-sum, before-tax payment of a whopping $90,302,950!

1 9


.

another? That dream became a reality for thousands of lucky

million in cash prizes!

These games have immensely in

wide of 2000, a record 59 instant games were introduced,

1 8

W ho hasn’t dreamt of winning a big Lottery prize at one time or

Lottery players all across the Great Lakes State in fiscal 2000.

During the past year, the Lottery paid out a whopping $920.8

Instant games continue to be wildly popular amongst Lottery playe r s, with instant game winners collecting over $398 million last year

gr own popularity over the past few years due to the

va riety choices offe r e d . In fiscal

ranging in price from $1 to $10. Offering approximate overall odds of winning a cash prize of 1 in 5, instant tickets are attractive to players from Detroit to Marquette. Instant winners hailed from all areas of the state, including: Sally Beckers of Allegan, who collected $300,000 in the “Bingo Mania” instant game; James Newville Sr. of Ravenna, who

ho hasn’t dreamt of winning a big Lottery prize at one time or

another? That dream became a reality for thousands of lucky

Lottery players all across the Great Lakes State in fiscal 2000.

During the past year, the Lottery paid out a whopping $920.8

million in cash prizes!

Instant games continue to be wildly popularamongst Lottery playe r s, with instant gamewinners collecting over $398 million last year.These games have gr own immensely in popularity over the past few years due to thewide va riety of choices offe r e d . In fiscal2000, a record 59 instant games were introduced,ranging in price from $1 to $10. Offering approximate overall odds ofwinning a cash prize of 1 in 5, instant tickets are attractive to playersfrom Detroit to Marquette. Instant winners hailed from all areas of thestate, including: Sally Beckers of Allegan, who collected $300,000 inthe “Bingo Mania” instant game; James Newville Sr. of Ravenna, who

1 8

W


special

out on this drawing were over $3.7 million, amounting to over 555

The Big Game truly lived up to its name for winners in fiscal 2000! The

became the focus of national attention in May 2000 when the jackpot

million to win the honor of largest jackpot in North American history.

their one-time, lump-sum, before-tax payment of a whopping $90,302,950!

won $200,000 in the “High Score” instant game; a n d

winners, like many other instant ticket winners, put their

va c a t i o n s, paying bills, starting college funds for children

Daily 3 & 4 players weren’t far behind in pri ze s, collecting over $341 million combined. Daily Game players all have different ways of choosing their favorite numbers. Whether it be based on birthdays, anniversaries or other special dates, they all have certain numbers they rely on to bring them good luck. Among the highest Daily Game payouts this year was the Daily 3 number 7-1-1, which was drawn on October 27, 1999 in the evening drawing.The Lottery paid out almost $2.5 million in winnings in that single drawing, amounting to more than 339 percent of the sales for that drawing! Not to be outdone by the Daily 3 Game, the Daily 4 Game also had a big payout this year as we l l .The Daily 4 number 1-0-1-2 was drawn on March 11, 2000 in the evening draw i n g . The winnings paid

Big Game saw an increase in prize payouts over last year, with over $130 million awarded to lucky players across the state. The Big Game

swelled to a record-shattering $363 million for the May 9, 2000 drawing! The huge jackpot unseated the July 1998 Powerball jackpot of $295.7

The most exciting news came the day after the May 9 drawing when it was announced that two lucky winners were holding jackpot-winning ticke t s – one from Michigan and the other from Illinois. At a press conference on May 12, 2000, Larry and Nancy Ross of Shelby Township announced to the wo rld that they were Michigan’s newest mu l t i m i l l i o n a i r e s, collecting

Karen Vincent of Holly, who raked in a cool $250,000 in the “ L i fe In The Cash Lane” instant game. These

winnings to good use with plans for

and grandchildren and buying new homes and vehicles.

percent of the sales for that draw i n g !

1 9

2 1


11, 2000 draw i n g . “ T h e r e ’s just no way I could have expected this to happen to me,” Bird said. “ You just have to keep playing to win!” In addition to the two Big Game jackpot winners last ye a r, millions of other l u cky players won pri zes ranging from $1 to $5,000, while 81 winning Big Game tickets wo rth $150,000 each were sold by Michigan Lottery retailers. Because the Big Game is made up of seven individual lotteri e s, each l o t t e ry contri butes a percentage of sales to the joint pri ze pool. In fiscal 2000, Michigan contri buted $60.1 million to this end.

The Big Game wasn’t the only producer of Michigan L o t t e ry multimillionaires – the Michigan Lotto game

produced its fair share of them this year as we l l ! Sixteen lucky Lottery players became Michigan Lotto millionaires in fiscal 2000, most of whom chose to collect their pri ze w i n n i n g s in one lump-sum payment for the

present cash value instead of for the announced j a ckpot spread over 25 ye a r s. Those winners hailed

from all areas of the state, including: Canton, Clawson, Detroit, Flint, G rand Rapids, Hudsonv i l l e, Lansing, Linden, Mt. M o r ri s, Romu l u s, S h e l by Tow n s h i p, Washington Township and Wya n d o t t e.

The Lottery ’s newest game – Michigan Rolldown – debuted in Fe b ru a ry 2000 and replaced the Lottery ’s Cash 5 game. R o l l d own players we r e awarded over $16.6 million in cash pri zes this ye a r, contri buting to a 62.3 percent increase over last ye a r ’s pri ze payout for the Cash 5 game! Rounding out the Lottery ’s on-line product mix, Keno accounted for just

The Rosses weren’t the only lucky Big Game jackpot winners in FY 2000. L . E . Bird of Warren won a $7,433,100 Big Game jackpot in the Fe b ru a ry

over $5 million in pri zes to playe r s.

2 0

The Rosses weren’t the only lucky Big Game jackpot winners in FY 2000.L . E . Bird of Warren won a $7,433,100 Big Game jackpot in the Fe b ru a ry11, 2000 draw i n g . “ T h e r e ’s just no way I could have expected this to happen to me,” Bird said. “ You just have to keep playing to win!” In addition to the two Big Game jackpot winners last ye a r, millions of otherl u cky players won pri zes ranging from $1 to $5,000, while 81 winning BigGame tickets wo rth $150,000 each were sold by Michigan Lottery retailers.Because the Big Game is made up of seven individual lotteri e s, each l o t t e ry contri butes a percentage of sales to the joint pri ze pool. In fiscal2000, Michigan contri buted $60.1 million to this end.

The Big Game wasn’t the only producer of MichiganL o t t e ry multimillionaires – the Michigan Lotto game

produced its fair share of them this year as we l l !Sixteen lucky Lottery players becameMichigan Lotto millionaires in fiscal 2000,most of whom chose to collect their pri ze w i n n i n g s in one lump-sum payment for the

present cash value instead of for the announcedj a ckpot spread over 25 ye a r s. Those winners hailed

from all areas of the state, including: Canton, Clawson, Detroit, Flint,G rand Rapids, Hudsonv i l l e, Lansing, Linden, Mt. M o r ri s, Romu l u s,S h e l by Tow n s h i p, Washington Township and Wya n d o t t e.

The Lottery ’s newest game – Michigan Rolldown – debuted in Fe b ru a ry2000 and replaced the Lottery ’s Cash 5 game. R o l l d own players we r eawarded over $16.6 million in cash pri zes this ye a r, contri buting to a 62.3percent increase over last ye a r ’s pri ze payout for the Cash 5 game!Rounding out the Lottery ’s on-line product mix, Keno accounted for justover $5 million in pri zes to playe r s.

2 0


2 1


R E T A I L E R S A N D V E N D O R S

u p -to-date information about theLottery’s games and promotions.Our retailers wo rk hard selling the L o t t e ry ’s products and web e l i eve they deserve one of thehighest retailer commissions inN o rth Amer i c a ! Retailers aren’tthe only cri t i c a l factor in makingthe Michigan Lottery a success.While the retailers are the ones selling the ticke t s, there are two companies that are at work for us 24 hours a day, seven days a week,producing those tickets.

GTECH and Pollard Banknote produce the Lottery’s on-line and instantgame ticke t s, respective l y, and provide terminal maintenance to retailersall across the state. These companies together employ approximately200 Michigan residents and annually purchase millions of dollars inMichigan goods and services.

In the past ye a r, the Lottery also spent $18 million with Michigan pri n t i n gcompanies and adve rtising agencies to produce adve rtising and point-of-sale promotions to support its products. We also wo rk ve ry closely withthe state’s television, radio and newspaper outlets by purchasing media topromote our games and winners.

The Michigan Lottery is good for Michigan’se c o n o my in other ways as we l l . Upon winningtop Lottery pri ze s, hundreds of our winnersh ave shared their plans to purchase newhomes and ve h i c l e s, give to charities intheir communities and attend Michigan’scolleges and unive r s i t i e s.

In its 28 years of ex i s t e n c e, the MichiganLottery has proven to be a smart betfor state business.

2 5


o f

T

t i cke t s ; 2 percent on their in-store redemption winning tickets valued up to $600; and a 2 percent bonus

The Lottery is proud of its hard-wo rking and dedicated group of retailers. T h ey continue to prominently display the point-of-sale materials we supply them in an effo rt to ensure their customers have the latest and most

he Lottery works very closely with its 9,400 licensed retailers

who sell on-line and instant game tickets, as well as the vendors

who print those tickets. Without these individuals, the Lottery would

be unable to sell its products.

Retailers have played an increasingly i m p o rtant role in sales gr owth for the Michigan Lottery. This ye a r, thatp a rtnership yielded over $120 million

in commissions to Michigan Lottery

r e t a i l e r s. Retailers receive 6 percenton the sale of all Michigan Lottery

commission on redeemed winning tickets sold in their stores, valued up to $100,000. In addition to these commissions, during the past year the Lottery introduced two new commission enhancements for retailers.

Beginning on October 1, 1999, all Michigan Lottery retailers began receiving a 7 percent sales commission for all $2 instant games introduced during fiscal year 2000. That change brought retailers a 14-cent sales commission on eve ry $2 instant ticket sold last ye a r, and d u ri n g fiscal 2000 the Lottery introduced 26 different $2 instant games! Additionally, beginning on January 1, 2000, retailers began receiving a flat $2,000 bonus commission for redeemed prizes over $100,000 sold in their store. These commission enhancements gave Michigan Lottery retailers two more reasons to ask for the sale!

O ver the past year the Lottery has wo rked ve ry hard to support our retailer’s efforts during critical selling periods, including radio, television and point-of-sale advertising during the busy holiday months and when the Michigan Rolldown game was launched in February 2000.

2 4

he Lottery works very closely with its 9,400 licensed retailers

who sell on-line and instant game tickets, as well as the vendors

who print those tickets. Without these individuals, the Lottery would

be unable to sell its products.

Retailers have played an increasinglyi m p o rtant role in sales gr owth for the Michigan Lottery. This ye a r, thatp a rtnership yielded over $120 millionin commissions to Michigan Lotteryr e t a i l e r s. Retailers receive 6 percenton the sale of all Michigan Lotteryt i cke t s ; 2 percent on their in-store redemption o fwinning tickets valued up to $600; and a 2 percent bonus commission on redeemed winning tickets sold in their stores, valued upto $100,000. In addition to these commissions, during the past year theLottery introduced two new commission enhancements for retailers.

Beginning on October 1, 1999, all Michigan Lottery retailers beganreceiving a 7 percent sales commission for all $2 instant games introduced during fiscal year 2000. That change brought retailers a 14-cent sales commission on eve ry $2 instant ticket sold last ye a r, andd u ri n g fiscal 2000 the Lottery introduced 26 different $2 instant games!Additionally, beginning on January 1, 2000, retailers began receiving aflat $2,000 bonus commission for redeemed prizes over $100,000 soldin their store. These commission enhancements gave Michigan Lotteryretailers two more reasons to ask for the sale!

O ver the past year the Lottery has wo rked ve ry hard to support ourretailer’s efforts during critical selling periods, including radio, televisionand point-of-sale advertising during the busy holiday months and whenthe Michigan Rolldown game was launched in February 2000.

The Lottery is proud of its hard-wo rking and dedicated group of retailers.T h ey continue to prominently display the point-of-sale materials we supplythem in an effo rt to ensure their customers have the latest and most

T

2 4


h a

GTECH and Pollard Banknote produce the Lottery’s on-line and instant

200 Michigan residents and annually purchase millions of dollars in

the state’s television, radio and newspaper outlets by purchasing media to

for state business.

2 5

While the retailers are the ones selling the ticke t s, there are two companies that are at work for us 24 hours a day, seven days a week,

game ticke t s, respective l y, and provide terminal maintenance to retailers all across the state. These companies together employ approximately

In the past ye a r, the Lottery also spent $18 million with Michigan pri n t i n g companies and adve rtising agencies to produce adve rtising and point-of-sale promotions to support its products. We also wo rk ve ry closely with

In its 28 years of ex i s t e n c e, the Michigan Lottery has proven to be a smart bet

u p -to-date information about the Lottery’s games and promotions. Our retailers wo rk hard selling the L o t t e ry ’s products and we b e l i eve they deserve one of the highest retailer commissions in N o rth Amer i c a ! Retailers aren’t the only cri t i c a l factor in making the Michigan Lottery a success.

producing those tickets.

Michigan goods and services.

promote our games and winners.

ve shared their plans to purchase new

their communities and attend Michigan’s

The Michigan Lottery is good for Michigan’s e c o n o my in other ways as we l l . Upon winning top Lottery pri ze s, hundreds of our winners

homes and ve h i c l e s, give to charities in

colleges and unive r s i t i e s.

■ Sales & use taxe s :3 2 %

■ G e n e ral fund and other

state sources: 3 0 %

■ Local source reve nu e s : 2 7 %

■ Fe d e ral funds:7 %

Sources of school aid 2000 estimated budget $10.5 billion

Sources of school operating r eve nue 2000 estimated budget $15.9 billion*

* House Fiscal Agency Estimate

D i s t ri bution of reve nues actual2000 Lottery sales and otherincome $1.749 billion

Percentages are based on total Lotter ysales and other income, plus $11.9 million unrealized loss on investment.

■ Net reve nue to education: 3 5 %

■ P ri ze s :5 3 %

■ Commissions to retailers: 7 %

■ Game-related ex p e n s e s :3 %

■ A d ve rt i s i n g :1 %

■ A d m i n i s t ra t i o n :1 %


■ E a rm a rked income tax & state

education property tax: 3 2 %

■ Fe d e ral funds and other

s o u r c e s :6 %

■ Cigarette & liquor taxe s :4 %

■ Other taxe s : 4 %

■ L o t t e ry : 4 %

■ L o t t e ry :6 %

MICH IG AN LOTTERY PROFITS AND PUBL IC EDUCATION FUNDING

2 7


STATEMENT OF REVENUES, EXPENSES AN D TRANS FERS

FOR T H E Y EARS E ND ED S EPT E MB ER 30, 2 00 0 AN D 19 9 9

(In T h o u s a n d s ) R ev e nu e s 1 9 9 9 - 2 0 0 0 1 9 9 8 - 1 9 9 9 Daily 3 Sales $ 4 1 6 , 7 7 4 $ 4 2 4 , 4 7 1 Daily 4 Sales 2 8 4 , 7 2 2 2 9 3 , 9 2 1

Lotto Sales 1 0 6 , 2 1 3 1 6 1 , 4 6 4

Cash 5 Sales/Michigan Rolldown Sales 4 4 , 4 3 1 2 8 , 5 5 2 Big Game Sales 1 8 8 , 6 0 0

Keno Sales 1 0 , 7 4 4 1 1 , 5 9 6

6 4 3 , 2 6 7 6 2 9 , 9 4 1 $ 1 , 6 9 4 , 7 5 1 $ 1 , 7 3 0 , 9 1 7

$ 1 3 , 6 4 8 4 , 4 4 4 2 , 8 2 9

( 1 1 , 9 7 8 )

Other Income 3 6 , 3 0 7 2 9 , 0 5 6 $ 1 , 7 3 7 , 1 7 2 $ 1 , 6 6 9 , 8 1 0

E x p e n s e s Retailer Commissions $ 1 2 0 , 3 7 7

1 3 , 7 8 7 1 6 , 0 2 7

A d ve rt i s i n g 1 7 , 9 7 8 1 5 , 0 4 0

Game-related Expenses 4 3 , 0 6 4 4 4 , 2 9 4 6 , 6 2 9 6 , 4 4 9

$ 2 0 1 , 8 3 5 $ 2 0 2 , 6 2 9

$ 9 2 0 , 8 0 0 $ 9 4 4 , 5 0 8

$ 6 1 4 , 5 3 7 $ 5 2 2 , 6 7 3

$ 7 , 0 1 8 $ 7 , 3 4 2

9 8 3 9 8 3

( 1 1 , 9 7 8 )

$ 6 1 8 , 5 1 4 $ 6 2 1 , 1 3 1

2 6

18 0 , 9 7 2

Instant T i cket Sales Total T i cket Sales

C h a ri t a ble Gaming Receipts $1 3 , 7 9 1 Net Income from Discount Amort i z a t i o n

U n r e a l i zed Investment Income (Loss) (1 0 6 , 7 8 3 )

Total Rev e nu e s

$1 2 0 , 8 1 9 A d m i n i s t ra t i ve Expenses

C h a ri t a ble Gaming Expenses

Total Operating Expenses

P r i zes Aw a rd e d

Net Income C h a ri t a ble Gaming Net Income

Tra n s ferred to General Fund

Tra n s fer to Dept.of Community Health for Gambling Addiction Progra m s

R e s e rved Unrealized Gain on Inve s t m e n t s (1 0 6 , 7 8 3 )

Net Income Tr a n s ferred to School Aid Fund

STATEMENT OF REVENUES, EXPENSES AN D TRANS FERS

FOR T H E Y EARS E ND ED S EPT E MB ER 30, 2 00 0 AN D 19 9 9

R ev e nu e s 1 9 9 9 - 2 0 0 0 1 9 9 8 - 1 9 9 9Daily 3 Sales $ 4 1 6 , 7 7 4 $ 4 2 4 , 4 7 1Daily 4 Sales 2 8 4 , 7 2 2 2 9 3 , 9 2 1

Lotto Sales 1 0 6 , 2 1 3 1 6 1 , 4 6 4

Cash 5 Sales/Michigan Rolldown Sales 4 4 , 4 3 1 2 8 , 5 5 2Big Game Sales 1 8 8 , 6 0 0 18 0 , 9 7 2

Keno Sales 1 0 , 7 4 4 1 1 , 5 9 6

Instant T i cket Sales 6 4 3 , 2 6 7 6 2 9 , 9 4 1Total T i cket Sales $ 1 , 6 9 4 , 7 5 1 $ 1 , 7 3 0 , 9 1 7

C h a ri t a ble Gaming Receipts $ 1 3 , 6 4 8 $1 3 , 7 9 1Net Income from Discount Amort i z a t i o n 4 , 4 4 4 2 , 8 2 9

U n r e a l i zed Investment Income (Loss) ( 1 1 , 9 7 8 ) (1 0 6 , 7 8 3 )

Other Income 3 6 , 3 0 7 2 9 , 0 5 6Total Rev e nu e s $ 1 , 7 3 7 , 1 7 2 $ 1 , 6 6 9 , 8 1 0

E x p e n s e sRetailer Commissions $ 1 2 0 , 3 7 7 $1 2 0 , 8 1 9A d m i n i s t ra t i ve Expenses 1 3 , 7 8 7 1 6 , 0 2 7

A d ve rt i s i n g 1 7 , 9 7 8 1 5 , 0 4 0

Game-related Expenses 4 3 , 0 6 4 4 4 , 2 9 4C h a ri t a ble Gaming Expenses 6 , 6 2 9 6 , 4 4 9

Total Operating Expenses $ 2 0 1 , 8 3 5 $ 2 0 2 , 6 2 9

P r i zes Aw a rd e d $ 9 2 0 , 8 0 0 $ 9 4 4 , 5 0 8

Net Income $ 6 1 4 , 5 3 7 $ 5 2 2 , 6 7 3C h a ri t a ble Gaming Net Income

Tra n s ferred to General Fund $ 7 , 0 1 8 $ 7 , 3 4 2

Tra n s fer to Dept.of Community Healthfor Gambling Addiction Progra m s 9 8 3 9 8 3

R e s e rved Unrealized Gain on Inve s t m e n t s ( 1 1 , 9 7 8 ) (1 0 6 , 7 8 3 )

Net Income Tr a n s ferred to School Aid Fund $ 6 1 8 , 5 1 4 $ 6 2 1 , 1 3 1

(In T h o u s a n d s )

2 6


MICH IG AN LOTTERY PROFITS AND PUBL IC EDUCATION FUNDING

D i s t ri bution of reve nues actual 2000 Lottery sales and other income $1.749 billion

Percentages are based on total Lotter y sales and other income, plus $11.9 million unrealized loss on investment.

Sources of school aid 2000 estimated budget $10.5 billion

Sources of school operating r eve nue 2000 estimated budget $15.9 billion*

* House Fiscal Agency Estimate

■ P ri ze s :5 3 %

■ Commissions to retailers: 7 %

■ Game-related ex p e n s e s :3 %

■ A d ve rt i s i n g :1 %

■ A d m i n i s t ra t i o n :1 %

■


■ E a rm a rked income tax & state

education property tax: 3 2 %

■ Fe d e ral funds and other

s o u r c e s :6 %

■ Cigarette & liquor taxe s :4 %

■ Other taxe s : 4 %


■ G e n e ral fund and other

state sources: 3 0 %

■ Local source reve nu e s : 2 7 %

■ Fe d e ral funds: 7 %

■ L o t t e ry :6 %

Net reve nue to education: 3 5 %

■ L o t t e ry : 4 %

2 7

R E G I O N A L O F F I C E S

B r i d ge p o rt 6326 Bri d g e p o rt Village SquareB ri d g e p o rt, MI 487225 17. 7 7 7 . 7 140

D e t ro i tState of Michigan Plaza Building1200 Sixth StreetSouth Towe r, Suite 676Detroit, MI 482263 1 3 . 2 5 6 .18 8 0

Lansing 101 E. H i l l s d a l eP.O. B ox 30023Lansing, MI 489095 17. 3 3 5 - 575 6

Dearborn Heights27315 W.Wa r r e nC a m b ridge CenterD e a r b o rn Heights, MI 481273 1 3 . 5 6 5 . 0 2 1 9

Sterling Heights34700 DequindreS t e rling Heights, MI 483108 1 0 . 9 3 9 . 2 3 0 0

Wyoming 1288 28th Street, S. W.Wyoming, MI 495096 1 6 .53 8 . 9 5 8 8

Official Michigan Lottery Web site w w w. s t a t e. m i . u s/m i l o t t e ry


HI ST OR Y O F M I C H IG A N LO T T E R Y R E V E NU E S

P r i zes Won By Fiscal Ye a r * Net Rev e nues To Education

2 8

Retailer Commissions By Fiscal Ye a r *

By Fiscal Ye a r *

T i cket Sales By Fiscal Ye a r *

P r i zes Won By Fiscal Ye a r *

Retailer Commissions By Fiscal Ye a r *

Net Rev e nues To EducationBy Fiscal Ye a r *

T i cket Sales By Fiscal Ye a r *

HI ST OR Y O F M I C H IG A N LO T T E R Y R E V E NU E S

2 8


D e t ro i t State of Michigan Plaza Building 1200 Sixth Street

Detroit, MI 48226

Lansing, MI 48909

3 1 3 . 5 6 5 . 0 2 1 9

34700 Dequindre

8 1 0 . 9 3 9 . 2 3 0 0

Wyoming, MI 49509

Official Michigan Lottery Web site w w w. s t a t e. m i . u s/

R E G I O N A L O F F I C E S

B r i d ge p o rt 6326 Bri d g e p o rt Village Square B ri d g e p o rt, MI 48722 5 17. 7 7 7 . 7 140

South Towe r, Suite 676

3 1 3 . 2 5 6 .18 8 0

Lansing 101 E. H i l l s d a l e P.O. B ox 30023

5 17. 3 3 5 - 575 6

Dearborn Heights 27315 W.Wa r r e n C a m b ridge Center D e a r b o rn Heights, MI 48127

Sterling Heights

S t e rling Heights, MI 48310

Wyoming 1288 28th Street, S. W.

6 1 6 .53 8 . 9 5 8 8

m i l o t t e ry

200 0 Mi ch igan Bureau o f S t a t e Lo t t e r y

A N N U A L R E P O R T


in Michigan and In Michigan at least 75 percent of our adult residents

12 months.

the vast majority of these

and done so in the spirit the games are

a fun product at a fair price, all in the name

was intended to be, a stepping stone to success.

plan, and was certainly never meant to replace hard and ambition as a means to a better life.

are those who may need support in under-standing the are

treated, and help is just a phone call away.

call the Michigan Problem Gambling Helpline at 1.800.270.7117.

1 . 8 0 0 . 2 7 0 . 7 1 1 7

11,500 copies $11,291.00, $.98 per copy.

C O M P U L S I V E G A M B L I N G

L o t t e ry and other games of chance are preva l e n t wo rl d w i d e.

h ave purchased a Lottery ticket in the last

Fo rt u n a t e l y, Lottery enthusiasts have played responsibly

i n t e n d e d . H oweve r, as with any fo rm of g a m bling, abuses can and do occur.

At the Michigan Lottery, we believe in offe ri n g

of benefiting a worthy cause. The Lottery is entertaining, it’s a game of chance, and it’s f u n . The Lottery is not, and neve r

It’s not a good investment, not a retirement

wo rk

Because the Lottery understands there

diffe r e n c e, a n swers ava i l a bl e. C o m p u l s i ve gambling can be

If you would like more info rmation about p r o blem gambling and the programs ava i l a bl e,

In fiscal 2000 Michigan Lottery prov i d e d $ 1 million for compulsive gambling progra m s i n c l u d i n g the 800 helpline.

C o m p u l s i ve Gambling Helpline

P rinted under the authority of P. A . 239,1972 as amended.

michigan lottery 2000 annual report - som - state of … · iscal year 2000 proved to be an...

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