Colorado Lottery New Game Research Collaborative Review June 15, 2012

Colorado Lottery New Game ResearchCollaborative Review

June 15, 2012

Prepared by:

10532 NE 68th Street – Suite D200, Kirkland, WA 98033(425) 827-6111 [email protected]

Colorado Lottery New Game Research 2

Contents

Subject Page

Research Objectives, Methodology, etc. 2

Executive Summary 7

Detailed Findings 28

5 Card Cash Game Review 29

Lucky in Life Game Review 43

Colorado 3 Game Review 60

Lotto Plus Game Review 77

New Game Preference 93

Forecast Dynamics 98

Demographics & Respondent Profile 104

Appendix 108

June 15, 2012


Research ObjectivesOverall New Game Research Project Objectives:• Provide insights into trial likelihood and long-term game revenue potential for the new games, specifically

to replace Match Play.• Determine opportunities to optimize the current Lotto game.• Estimate the business impact on the current Colorado Lottery portfolio; recommend specific games for

pursuit, if any.• Identify issues and opportunities for enhancement for each of the prospective games in terms of their:

– Game design,– Positioning/Messaging, and– Marketing requirements.

Quantitative Research:• Determine if any of the games could achieve a $0.08 per cap• Isolate the Lotto Plus upside• Recommend games for development• Provide guideposts to increase success

June 15, 2012


Research Methodology

• 1,003 online interviews were conducted among Colorado adults by Crestwood Associates between May 7, 2012 and May 15, 2012; average interview length was 22 minutes.

• Respondent criteria was as follows:– 18 years of age or older– Colorado residents– No members of the household working in market research, for a gaming company, or for a retailer

engaged in the selling of Lottery tickets– All were past 6 month Lottery players

• Quotas were identified and maintained for the key Colorado Lottery segments:– C-Store Dreamers (n=229)– Jackpot Hounds (n=220)– Young, Entitled, Spontaneous Men (n=67)– Female Fun Squad (n=242)– Traditional, Older, Small Splurgers (n=245)

• To ensure that collected data was representative of the true demographic makeup of Colorado, data was weighted according to the state’s 2010 US Census data for age, sex, ethnicity, and race.

June 15, 2012


Overall Research Plan

June 15, 2012

New Lottery Game Success Components

New Game

Success

Initial Game Development

Focus Groups:Boulder – Denver

Seven Games

Quantitative Research:n=1000

Four Games

Analysis and Recommendations

Go To Market


Games Evaluated in Quantitative ResearchPlayers were exposed to a game concept, which was then removed prior to their being asked for top-of-mind reactions. The concepts were then shown again for the player to refer to in answering several more, in-depth questions. Full size slide concepts can be found in the Appendix to this report.

June 15, 2012


Evaluation Process and Survey Flow

Game descriptions were presented using a variant of the Crestwood PreVuTM process designed to best capture top-of-mind reactions. Overall benefits of the PreVuTM process include:

June 15, 2012

Screener

• Gender/Age/Residency• Industry Exclusion• Ethnicity• Current Play and Spending Behaviors• Segment Batteries

• Initial Tournament for Cannibalization Estimates

• Expected purchase likelihood• Expected purchase frequency• Expected games purchased per play• Ease of understanding

• In Depth Game Review• Amount required for Satisfactory

Win• Loss Tolerance• Unique game attribute ratings

• Game Preference• Second Tournament for

Cannibalization Estimates

• Demographic Profiling

1 Timed viewing of concept(s):Respondents are exposed to a single concept or image for a limited period to replicate the brief, initial experience the consumer uses to make an initial evaluation.

2 Top-of-mind exploration:Once the concept disappears, respondents are asked a series of questions aimed specifically at gathering initial communications and top–of-mind reactions. The back button is disabled to insure all responses are unaided.

3 In-depth investigation with concept(s) present:Respondents answer additional probes with the concept present. Exposure time and responses are not controlled.

4 Side-by-side comparison of all the concepts: Concepts are viewed together and preferences are obtained. This comparison provides additional insights and exacerbates differences between concepts.


Executive Summary

June 15, 2012


Overall Observations• Overall, one game, 5 Card Cash appears to have the potential to meet the minimum per cap target:

– 5 Card Cash was perceived as both easy to understand and unique.– Key defining characteristics are the 2 games in 1, cards theme, prize structure and instant win

component.– While player expectations are similar to other games, the daily play and higher churn odds provide a

higher sales expectation.• The Lotto Plus game appeals to current Lotto Players and should generate incremental 10-15% Lotto sales:

– Lotto Plus has a targeted appeal among current players.– The game is not expected to significantly change overall Lotto play patterns.

• Neither Colorado 3 nor Lucky in Life appear to have the opportunity to break through.– The simplified Colorado 3 game was still too difficult to understand:

• The core of prior Pick 3 players was both small and not particularly inspired.• Key appeal of the game was three numbers, choosing how the numbers come up, and $0.50

wagers.• Projected play patterns were consistent with other Western jurisdictions, and thus was

primarily limited to a small core of players.– Lucky in Life suffered from lower uniqueness and the odds hurt the game.

• Players like the top prize and the lower level win chances.• Little enthusiasm was generated, and only a few would be loyal to the game.

June 15, 2012


Stated and Estimated Purchase Intent

June 15, 2012

• While stated purchase intent for 5 Card Cash, Lucky in Life, and Lotto Plus was fairly high, actual trial is anticipated to be much lower.

• Assuming 100% awareness, Crestwood estimates that 21% would try 5 Card Cash, 17% would try Lucky in Life, 15% would try Lotto Plus, and 13% would try Colorado 3.

• Only 5 Card Cash had strong Very Likely to purchase intent.

Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games?

Stated and Estimated Purchase IntentBase = All Respondents (n=1,003)

A. 5 Card Cash B. Lucky in Life C. Colorado 3 D. Lotto Plus

33%Cd

34%Cd

24%

30%c

17%BCD 12%

10%

11%

50%

46%

34%

40%

21%17%

13%15%

Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level


Lotto Plus Top of Mind Segmented Purchase Intent

Total Lotto Players Non Lotto Players

23%

7%

35%

13%

13%

13%24%

25%

24%

30%

37%

23%

11%17%

5%

June 15, 2012

• Overall, Lotto Plus is more appealing to current Lotto Players.• 55% of Lotto Players and 28% of Non Lotto Players indicated they were somewhat or very likely to

purchase Lotto Plus.• Lotto play appears to be more discriminating than Player Segmentation for Lotto Plus as an “add-on.”



Lotto Plus Top of Mind Purchase Intent – Lotto Players vs. Non Lotto PlayersBase = All Respondents

Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245),Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot Hounds (n=220)


Colorado 3 Top of Mind Purchase Intent by Pick 3 Awareness

June 15, 2012

• Those who have heard of or played Pick 3 from another Lottery are more interested in playing Colorado 3 than those previously unaware of the game.

• 24% of those aware of Pick 3 consider themselves very likely to purchase Colorado 3, whereas 10% of those unaware would be very likely to purchase the game.

Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games? Q20. Have you ever heard of or played the game Pick 3 from another Lottery?


Colorado 3 Top of Mind Purchase Intent by Pick 3 AwarenessBase = All Respondents

Aware of or Played Pick 3 (n=173), Unaware of Pick 3 (n=534)

Aware of or Played Pick 3 Unaware of Pick 32% 7%

18%18%

23%

30%

33%

35%

24%

10%


Most Preferred New Game Concept

• 5 Card Cash was most appealing overall and particularly favored by the C-Store Dreamers, Female Fun Squad, and Jackpot Hound segments.

• Interestingly, 5 Card Cash was preferred over Lucky in Life by nearly 2:1 among 18 to 34 year old players while among those 35 and older were evenly split with 35% preferring 5 Card Cash and 32% preferring Lucky in Life.

• Lucky in Life preference was stronger among those who play traditional jackpot games, such as the C-store Dreamers, Jackpot Hounds, and those age 35+.

June 15, 2012

[A] Total

[B] Young, Entitled, Spontaneous Men

[C] Traditional, Older, Small Splurgers

[D] Female Fun Squad

[E] C-Store Dreamers

[F] Jackpot Hounds

O. Ages 18 to 34

P. Ages 35+

37%

30%

32%

38%

44% abC

37%

43% p

35%

29%

26%

27%

29%

30%

31%

22%

32% O

18%

24% d

20% d

14%

15%

19%

19%

17%

16% e

21%

21% aEf

19% ef

11%

13%

16%

16%

5 Card Cash Lucky in Life Colorado 3 Lotto Plus

Most Preferred New Game ConceptBase = All Respondents

Total (n=1,003), Young, Entitled, Spontaneous Men (n=67), Traditional, Older, Small Splurgers (n=245), Female Fun Squad (n=242), C-Store Dreamers (n=229), Jackpot

Hounds (n=220)


Q12. Please rank each of the concepts you have just evaluated in order of overall preference with 1 being the game you most prefer and 3 being the game you least prefer.


Favorite Games – Select Open Ends

Colorado 3Perceived winnability and costs were considered strengths. There was also some recognition of Numbers play from other jurisdictions.

“Best chance to win.”“Because it has good odds and a good price.”

“Less risky.”“Quick & easy.”

“I like the $.50 bets.”“ONLY COST $1.00 TO PLAY.”“Kind of like horse betting.”

“Because we had a game similar to this in Michigan.”“It was fun, appeared to be a better deal.”

June 15, 2012

Lotto PlusAs an add-on to the current Lotto game, Lotto Plus’ strengths were it’s ease of application, it’s cost and the 4X multiplier factor.

“Easy to understand.”“Easy to understand - bigger payoff.”

“I like lotto already so $1 more doesn't seem horrible. Also like the winnings times 4.”“Quadruple the winnings.”

“4 times win.”“Best result possibilities for the money.”

5 Card CashEase of play, the Poker style theme, and odds were considered strengths.

“Easiest to play and understand.”“Simple, buy it! Check it! Celebrate!”

“It seemed the most fun.”“I like that you don’t have to select numbers”

“I like the Poker element and fact that you can spot a winner without having to wait for a drawing.”

“I like that the concept is different than a typical drawing and I prefer cards to other forms of gambling.”

“Seemed mostly likely to win.”“Better odds”

Lucky in LifeStrengths included the games top prize and the name. The game was also perceived to be different from existing games.“The whole appeal to me with a lottery is that it is possible to

win a jackpot that will change your life...the others games don't offer a real jackpot.”

“Like the concept of $1000 per day for life.”“1000 a day for 30 years top prize.”

“I LIKE THE NAME.”“I like the name and the fact that I can win $1000/day.”

“It has the best overall winnings and is the most different from games I already play. It is a good value for my money as well.”

Q14. Why did you select [Insert game most preferred from Q12 (Q12=1)] as the game you liked least?


Ease of Understanding & Differentiation


63%C

65%C

41%

68%aC65%

BCD

48%d

60%BD

43%

June 15, 2012

• Overall, all games with the exception of Colorado 3 were perceived as easy to understand by 60% or more of those surveyed.

• 5 Card Cash and Colorado 3 were perceived as the most new and different.

Q6/Q7. Using the scale provided, how strongly do you disagree or agree with the following?

Ease of Understanding & Differentiation – Top-2 Box Summary (Agree)Base = All Respondents (n=1,003)



General Game Perceptions

This g

ame a

ppears

fun to play

In addition to

the t

op prize, I

like t

he other

prizes

availa

ble

I like t

he top priz

e

There

are l

ots of w

ays to

win th

is gam

e

I like t

he nam

e of th

is gam

e

This g

ame p

rovides

good va

lue for m

y money

I think t

his gam

e has

good odds

I think I

would play th

is gam

e reg

ularly

62%BCD

65%BCD

71%Cd 61%

BCD 54%CD

36%cD

36%CD 31%

CD

52%CD

57%CD

73%CD

50%D

55%CD

33%d

37%CD 30%

Cd42% 44% 47%

49%D

39%31%

31%d

21%

42%

49%c

66%C

36%

43%c

29% 26%26%

c

June 15, 2012

• Overall, 5 Card Cash and Lucky in Life received the highest perception ratings.• Key differentiation was found in fun to play, prize structures and winnability.• Few agree however, that these games provide good value, have good odds, or believe they would play

these games regularly.


General Game Perceptions – Top-2 Box Summary (Agree)Base = All Respondents (n=1,003)


Leverage Grid Analysis

The attributes reviewed were statistically linked to purchase intent to arrive at a derived motivation score. The motivational impact was plotted in relation to the perceived delivery of each of the attributes to highlight the most leveragable attributes to generate trial. A summary of the resulting plots, seen on the following page may be interpreted as follows:

June 15, 2012

Opportunities Hot Buttons

Irrelevant Cost of EntryOr Baseline

Hot Buttons: Key Drivers. These are essential attributes that are perceived highly. Points of leverage – Promote.

Opportunities: Highly motivating but not universally perceived as well delivered. Potential paradigm shifters – Invest.

Cost of Entry: Although considered well delivered, will not create incremental business. Represent norms or standards – Maintain.

Irrelevant: Not seen as important. Insufficient motivation to build value; Efforts may have no effect - Ignore.

Perceived Delivery

Deriv

ed M

otiva

tion


Like that I don't have to pick any numbers

Like knowing if i've won instantly

Like the card theme

I can win with 2 JacksLike the nightly draw

This game is 2 games in 1

I'd play regularly

Has good odds

Good value for my money

I like the name

Lots of ways to win

I like the top prize

I like the other prizes available

Game appears fun to play

5 Card Cash Attribute Leverage• Strengths include the 2 games in 1 aspect as well as the game appears fun to play, promoting these will

have positive effect as they are moderately motivating.• Improving perceptions of I think I would play this game regularly and this game provides good value for my

money are opportunities as they are considered motivating but prospective players are not yet sold on them.

June 15, 2012

Perceived Delivery

Deriv

ed M

otiva

tion


Irrelevant Cost of Entry


Can win by just matching the Lucky Ball

Like that I can choose numbers or Quickpick

Would rather be paid over time

Like having 2 draws per week

I like that it's played only in CO, AZ and OK

I'd play regularly

Has good odds

Good value for my money I like the name

Lots of ways to win

I like the top prizeI like the other prizes available


Lucky in Life Attribute Leverage• Strengths include appears fun to play, can win by just matching the Lucky Ball, I can choose my own

numbers or use Quick Pick, and I like the name. Note the prizes were not motivating.• Improving perceptions of I think I would play this game regularly and this game provides good value for my


June 15, 2012

Perceived Delivery

Deriv

ed M

otiva

tion




Wagers start at just $0.50 per play

I only have to pick 3 numbers

I can play twice a day

I can choose how my numbers come up

Like that I can choose my own numbers

I'd play regularly

Has good odds


I like the name

Lots of ways to winI like the top prize



Colorado 3 Attribute Leverage• Strengths include the game appears fun to play and I like that I can choose how my numbers come up,

promoting these will have positive effect as they are moderately motivating.• Improving perceptions of I think I would play this game regularly and this game provides good value for my

money are opportunities as they are motivating, but only among a small group.

June 15, 2012

Perceived Delivery

Deriv

ed M

otiva

tion




Makes me want to play Lotto more often

Like multiplying my winnings

I'd play regularly

Has good odds


I like the nameLots of ways to win




Lotto Plus Attribute Leverage• The only strength identified for Lotto Plus is that the game appears fun to play, promoting this will have

positive effect as they are moderately motivating.• Improving perceptions of I think I would play this game regularly and this game makes me want o play

Lotto more often are opportunities as they are considered motivating but prospective players are not yet sold on them.

June 15, 2012

Perceived Delivery

Deriv

ed M

otiva

tion




Lotto Plus Estimated % of Time Purchasing Game

[A] Total [B] Young, Entitled, Spontaneous Men


[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds

50%C

48%

41%

49%c

52%C

55%abCd

June 15, 2012

Those who would buy Lotto Plus would purchase the add-on about half the time.

Lotto Plus Estimated % of Time Purchasing GameBase = Would Buy Game

Total (n=783), Young, Entitled, Spontaneous Men (n=56), Traditional, Older, Small Splurgers (n=134),Female Fun Squad (n=194), C-Store Dreamers (n=200), Jackpot Hounds (n=199)

Q5a. What percent of the time do you think you might spend the extra $1 to add the Lotto Plus option?



Key Business Dynamics

5 Card Cash Lucky in Life Colorado 3 Lotto Plus

Estimated Trial 21% 17% 13% 15%

Price per Ticket $2 $2 $0.50 ($1 increments)

$1 (incremental)

Estimated Annual Purchase Frequency Among Triers

39.3 19.4 37.4 18.8

Estimated Average Spend Per Year Among Triers

$288 $127 $302 $100

Satisfactory Win Requirements $10 $10 $5 $10

June 15, 2012

• 5 Card Cash has the highest anticipated trial among the games evaluated followed by Lucky in Life.• Anticipated purchase frequency is highest for both the daily games.• Lucky in Life, while only trailing somewhat in trial, is hampered by lower purchase frequency and spend

per play.• Colorado 3 appears to have high spending, but is limited to a concentrated audience; sales are low due to

low trial and poor stickiness with 1:167 odds, thus will have a small sustaining base.• Lotto Plus has the lowest annual spend, even amongst those who say they will try the game.


Sustaining Sales Forecast

5 Card Cash Lucky in Life Colorado 3

Estimated Unaided Awareness

High 25% 25% 25%

Low 12% 12% 12%

Sustaining Gross Sales @ Awareness Levels

High $34.4M $11.5M $4.3M

Low $16.5M $5.5M $2.1M

Sustaining Per Cap @ Awareness Levels

High $0.13 $0.04 $0.02

Low $0.08 $0.02 $0.01

June 15, 2012

• Game sales on all games will be dependent on awareness generated.• 5 Card Cash generates the highest sales potential, followed by Lucky in Life and Colorado 3 (Lotto Plus is

shown following)• Sales forecast is for sustaining levels, post introductory efforts.

Notes: 1. Awareness levels based upon SWAG and 2010 Image Study reported 46% Match Play “aided” awareness.2. Balance of forecast based upon key business metrics and Crestwood formula


Lotto Plus Sales Forecast

Current Players Non Players

% of Lottery Players 46% 54%

Current Sales $39.3M

Assumed Lotto Plus Awareness 100% 10%

Estimated Trial 22% 10%

Purchases per PlayLotto $1

Lotto Plus $1 $1

Gross Sales

Lotto $39.3M $0.4M

Lotto Plus $4.5M $0.4M

Total $43.8M $0.9M

Estimated Sales Increase

Within Segment 11% 100%

Total 14%

June 15, 2012

• Lotto Plus is expected to increase Lotto sales by up to 14%; almost all gains will come from Players.• Minimal cannibalization of current sales is expected as the majority of transactions appear to be single

ticket.


Sources of Growth – Cannibalization of Existing Games

June 15, 2012

• Much of the spending would result from cannibalization of existing products with 2-3% incremental sales.• More than half of the spending is predicted to be cannibalized from Scratch (24% - 27%) and Powerball

(27%) while 22% to 26% of the spending would come from the existing Lotto game.• Cash 5 would see few adverse effects.• Retained Match Play sales will probably merge into other games in general.

Sources of Growth and CannibalizationBase = All Respondents (n=1,003)


27% 25% 24% 22%

4% 3% 5%5%

3%3% 4%

3%

22%23%

26%24%

14% 16%12%

14%

27% 27% 27% 30%

3% 3% 2% 2%


Conclusions & Recommendations• All of the games tested were basically considered “Lottery” games and thus would only incrementalize the

business; there are no game changers.– None of the games showed truly broad based trial intent.– Play patterns were similar to existing games.– Games tested primarily cannibalized current sales.– Beyond trial interest, the main differences accrued to game construction.

• The 5 Card Cash game shows the greatest potential:– Has the highest sales potential.– Is perceived to be the most unique.– The game structure supports stronger “stickiness.”

• Instant win portion is a key differentiator.• Instant win odds support continued churn.• The daily frequency supports both planned and spontaneous play.

• The Lotto Plus game appears to have low risk and should be pursued as a niche opportunity:– Sales expectations appear to mirror post introductory jackpot game add-ons.– However, half of those who like the game will make it a regular play.– Unfortunately, it does not appear to add to the appeal of the base game, thus may not change long

term trends.

June 15, 2012


Conclusions and Recommendations (con’t)• Key success factors for 5 Card Cash will be:

– Targeting at the current Lotto type players, such as C-store Dreamers and Jackopot Hounds; YES Men are a developmental opportunity

– Maintaining awareness at retail– Establishing the perception of fun and 2 games in 1, particularly leveraging the key differences of

instant win and the card theme– The 5 Card Cash name should be retained.– Leveraging the churn prize potential

• We have fears about continuing Lucky in Life:– The top prize appeal is well understood and strong– The game was not seen as unique, resulting in relatively low trial– Even though odds and stickiness appear in line, purchasing characteristics are low– We recommend closely monitoring the New England success to measure sustainability after the

abnormal awareness from the initial hit• Unfortunately, even after the simplification of the game, Colorado 3 could not break out:

– While there is higher interest among those aware of the game, those players only represent one quarter of the population

– Without a stronger tradition, stickiness at current odds is bothersome– Results are similar to other Western states.

June 15, 2012


Detailed Findings

June 15, 2012

Game Reviews

5 Card CashLucky in LifeColorado 3Lotto Plus

June 15, 2012Colorado Lottery New Game Research 30

5 Card Cash

5 Card Cash is a game where you get 2 ways to play your hand—an instant win game and an evening draw game with one ticket.

You can win up to $100,000 in the nightly drawings and $5,000 instantly.

When you play 5 Card Cash, your ticket will print with 5 quick picked playing cards.

You win instantly if your 5 Card Cash hand is a pair of Jacks or better, and the words "Instant Winner" will print right on your ticket. You can also win again in the nightly drawings by matching 2 or more cards in any order.

Cost per play: $2.

A fun new way to play Poker where your hand has 2 ways to win!

Sample ticket

Instant Win PrizesPoker Hand Prize Odds

Royal Flush $5,000 649,740 Straight Flush $1,000 72,193 4 of a Kind $100 4,165 Full House $40 694 Flush $25 509 Straight $15 255 3 of a Kind $7 47 2 Pair $4 21 Pair of J, Q, K, A $2 10

Overall Instant Win Odds: 6

Draw Game PrizesMatches Prize Odds

5 $100,000 2,598,9604 $1,000 11,0593 $25 2402 $2 16

Overall Draw Game Odds: 15

Check your instant win

hand to see if you won instantly!

Check your draw wins

that evening for the same

cards


5 Card Cash Top of Mind Purchase Intent

June 15, 2012

• Overall, half of all players surveyed indicated they would be somewhat or very likely to purchase 5 Card Cash.

• Jackpot Hounds are the most likely to purchase the game (75%) followed by C-Store Dreamers (60%), YES Men (54%) and members of the Female Fun Squad (48%).

• Traditional, Older, Small Splurgers found the game less attractive, only 19% indicated they were somewhat or very likely to purchase the game.



5 Card Cash Top of Mind Purchase IntentBase = All Respondents





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5 Card Cash Stated and Estimated Purchase Intent

June 15, 2012

• 5 Card Cash was most appealing to YES Men, C-Store Dreamers and Jackpot Hounds; at 100% awareness Crestwood expects a little over a quarter would try the game.

• Traditional, Older, Small Splurgers show very little interest in purchasing the game.





33%29%

15%

39%

34%53%

17% 25%

4%

9% 26%

22%

50%55%

18%

49%

60%

75%

21%26%

6%

17%

28% 30%

5 Card Cash Stated and Estimated Purchase IntentBase = All Respondents



5 Card Cash Top of Mind Purchase Intent by Age & Ethnicity

June 15, 2012

5 Card Cash is more appealing to younger players and Hispanic or Latino players.



5 Card Cash Top of Mind Purchase Intent by Age & EthnicityBase = All Respondents

Total (n=1,003), Age 18-34 (n=141), Age 35+ (n=862), Hispanic or Latino (n=86), Not Hispanic or Latino (n=917)

[A] Total [O] Age 18-34 [P] Age 35+ [Q] Hispanic / Latino [R] Not Hispanic / Latino

20% o0.132108035536138

23%aO 0.166740057881836 0.204381209788871

11% q0.110075579465335

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17% P 26%P

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5 Card Cash Ease of Understanding & Differentiation




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59%

50%

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66%C

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65%C

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June 15, 2012

• Overall, approximately two thirds of the players surveyed perceived 5 Card Cash to be easy to understand and perceived the game to be new and different.

• Jackpot Hounds and C-Store Dreamers were most favorable toward the game.• While YES Men and Traditional, Older, Small Splurgers tended to be less favorable toward the game overall,

50% or more perceived the game to be easy to understand, though only 45% of the Traditional, Older, Small Splurgers perceived the game to be new and different.



5 Card Cash Ease of Understanding & Differentiation – Top-2 Box Summary (Agree)Base = All Respondents



5 Card Cash Perceptions

June 15, 2012

• Overall, 5 Card Cash generated strong, positive perceptions.• Only one third agreed however that this game provides good value for my money, this game has good

odds, or that they would play this game regularly – these scores were pulled down by lower scores among the Traditional, Older, Small Splurgers and Female Fun Squad segments.

TotalYoung,

Entitled, Spontaneous

Men

Traditional, Older, Small

SplurgersFemale Fun

SquadC-Store

DreamersJackpot Hounds

n= 1003 67 245 242 229 220[A] [B] [C] [D] [E] [F]

This game appears fun to play 62% C 57% C 34% 62% C 77% ABCD 80% ABCDIn addition to the top prize, I like the other prizes available 65% C 67% C 42% 64% C 78% AbCD 77% ACDI like the top prize 71% C 69% C 49% 69% C 82% AbCD 86% ABCDThere are lots of ways to win this game 61% C 67% C 39% 64% C 71% AC 72% ACdI like the name of this game 54% Cd 54% C 35% 46% C 68% AbCD 65% ACDThis game provides good value for my money 36% CD 56% ACD 11% 25% C 47% ACD 50% ACDI think this game has good odds 36% C 47% aCd 14% 32% C 46% ACD 50% ACDI think I would play this game regularly 31% CD 52% ACD 4% 23% C 44% ACD 47% ACDI like that this game is 2 games in 1 70% C 65% C 46% 67% C 85% ABCD 85% ABCDI like having the nightly drawing 55% C 59% C 33% 53% C 70% AbCD 66% ACDI like that I can win with as little as two “Jacks” 69% C 71% C 46% 68% C 83% AbCD 82% AbCDI like the card theme 66% C 66% C 44% 67% C 77% AbCd 78% AbCDI like knowing if I have won “instantly” 80% C 76% c 64% 82% C 90% AbCD 88% AbCdI like that I don’t have to pick any numbers to play this game 53% C 51% c 36% 59% C 57% C 68% ABCde

Q8 Based on this description, please tell us the extent to which you disagree or agree with each of the following statements.


5 Card Cash Perceptions – Top-2 Box SummaryBase = All Respondents


5 Card Cash Average Estimated Annual Purchases



[D] Female Fun Squad [E] C-Store Dreamers [F] Jackpot Hounds 0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

39.3CD

76.4ACDE

11.5

22.7C

40.2CD

53.3ACDE

11%

21%

3%6%

11%15%

June 15, 2012

• Overall, respondents who would play 5 Card Cash indicate they would buy it approximately 39 times per year or 3 times per month.

• YES Men (76 times per year/6 times per month) and Jackpot Hounds (51 times per year/4 times per month) believe they would play the game most often while C-Store Dreamers, members of the Female Fun Squad, and Traditional, Older, Small Splurgers anticipate playing less often.

Q3. Based on this description, if this game were available, how often do you think you would you buy it?


5 Card Cash Average (Mean) Estimated Annual PurchasesBase = Would Purchase 5 Card Cash



5 Card Cash Average Estimated Plays per Purchase




2.8CD

3.2aCD

2.3 2.3

3.1aCDf

2.8cD

June 15, 2012

Those who would purchase 5 Card Cash would probably purchase 2-3 tickets at a time.

5 Card Cash Average (Mean) Estimated Plays per PurchaseBase = Would Purchase Game


Q4. You indicated you would buy this game [INSERT Q3 RESPONSE]. If this game was available, how many plays do you think you might purchase at one time?



5 Card Cash Average Satisfactory Win Amount




$10 $10 $10 $10

$5

$10

June 15, 2012

• A win of $10 would be viewed as satisfactory by 50% of the 5 Card Cash players• C-Store Dreamers have a lower satisfactory win amount of $5.

5 Card Cash Average (Median) Satisfactory Win AmountBase = Would Buy Game


Q9. As you know, not all lottery purchases result in someone winning a top prize. With this in mind and assuming you spent ___to play this game, what amount of money would you need to win from this game to be satisfied enough to play again?



5 Card Cash Average Loss Tolerance




5.4bC

4.3

3.4

5.9BC

6.0aBC

6.3ABC

4.0

3.0 3.0

4.0

5.0 5.0

June 15, 2012

• Most indicate they would play 4 or 5 times without a win before giving up on 5 Card Cash.• The Female Fun Squad, C-Store Dreamers, and Jackpot Hounds segments have the highest loss tolerance.

5 Card Cash Average Loss ToleranceBase = Would Buy Game


Q10. Earlier, you mentioned that you might purchase ___plays when buying this game. Approximately how many times do you think you would be willing to play this game without having a satisfactory instant win?



Like that I don't have to pick any numbers

Like knowing if i've won instantly

Like the card theme

I can win with 2 JacksLike the nightly draw

This game is 2 games in 1

I'd play regularly

Has good odds


I like the name

Lots of ways to win




Leveraging 5 Card Cash for Maximum Trial• Strengths include the 2 games in 1 aspect as well as the game appears fun to play, promoting these will

have positive effect as they are moderately motivating.• Improving perceptions of I think I would play this game regularly and this game provides good value for my


June 15, 2012

Perceived Delivery

Deriv

ed M

otiva

tion




Leveraging 5 Card Cash

Total Young, Entitled, Spontaneous Men

Traditional, Older, Small Splurgers Female Fun Squad C-Store Dreamers Jackpot Hounds

Game appears fun to play Hot Button Irrelevant Hot Button Hot Button Hot Button Hot Button

I like the other prizes available Cost of Entry Irrelevant Cost of Entry Hot Button Cost of Entry Cost of Entry

I like the top prize Cost of Entry Hot Button Cost of Entry Cost of Entry Cost of Entry Cost of Entry

Lots of ways to win Irrelevant Cost of Entry Cost of Entry Hot Button Irrelevant Irrelevant

I like the name Irrelevant Irrelevant Cost of Entry Irrelevant Irrelevant Opportunity

Good value for my money Opportunity Irrelevant Irrelevant Irrelevant Opportunity Irrelevant

Has good odds Irrelevant Irrelevant Irrelevant Irrelevant Irrelevant Irrelevant

I'd play regularly Opportunity Opportunity Opportunity Opportunity Opportunity Opportunity

This game is 2 games in 1 Hot Button Hot Button Hot Button Hot Button Cost of Entry Cost of Entry

Like the nightly draw Irrelevant Opportunity Cost of Entry Hot Button Irrelevant Opportunity

I can win with 2 Jacks Cost of Entry Cost of Entry Hot Button Cost of Entry Hot Button Cost of Entry

Like the card theme Cost of Entry Cost of Entry Cost of Entry Hot Button Hot Button Hot Button

Like knowing if i've won instantly Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry

Like that I don't have to pick any numbers Irrelevant Opportunity Cost of Entry Cost of Entry Irrelevant Irrelevant

June 15, 2012


5 Card Cash Favorite Alternate Names




29%42%

35%28% 29%

23%

34%

27%

25% 40% 38%

35%

37%31%

41%32% 33%

42%

June 15, 2012

• 5 Card Cash tested best overall, however, this was possibly biased by the fact that it was the name the game was evaluated under.

• Overall, respondents were open to the other names: – 5 Card Draw had fairly high preference overall and was favored by the Female Fun Squad and the C-

Store Dreamers.– Poker Pick was the least favored, though it was preferred by the YES Men.

Q15. The Colorado Lottery is considering other names for this game; from this list, please rank these 3 choices in priority of names.


5 Card Cash Favorite Alternate NamesBase = Would Buy Game


Game Reviews



Lucky in LifeLucky in Life gives you the chance to win $1,000 per day!

Playing Lucky in Life is easy: just pick five (5) numbers from 1 to 40 and a “Lucky Ball” number from 1 to 21 on the play slip, or choose Quick Pick.

You win if you match the Lucky Ball or at least two (2) numbers drawn by the lottery. If you match all 5 numbers and the Lucky Ball, you win $1,000 per day.

The $1,000 per day is for 30 years. Lucky in Life is played in Colorado, Oklahoma, and Arizona. Drawings are held twice a week.

Price per play is $2.

Win $1,000 every day!

Sample ticket

Numbers Matched

Lucky Ball Match Prize Odds

5 1 $1,000 per day 13,818,168 5 0 $25,000 690,908 4 1 $2,000 78,961 4 0 $100 3,948 3 1 $50 2,322 3 0 $10 116 2 1 $15 211 2 0 $2 11 1 1 $5 53 0 1 $4 43

Overall Odds of Winning a Prize: 7

Choose 5 numbers and 1 Lucky Ball number or use Quick

Pick

Check your numbers in the drawing to see

if you won.


Lucky in Life Top of Mind Purchase Intent




20%EF 16% f

42%ABDEF

19% EF11% 7%

14% bF

7%

20%aBeF

19% aBF

14% bf

7%

20%

20%

20%

25%

21%

19%

34%C

28%c

17%

33%C

37%C 53%

ABCDE

12% CD29%

ACDef

1% 4% c

18% aCD 15% CD

June 15, 2012

• Overall, 46% of the players surveyed indicated they would be somewhat or very likely to purchase Lucky in Life. YES Men are especially likely to purchase Lucky in Life.

• Jackpot Hounds are the most likely to purchase the game (68%) followed by YES Men (57%), C-Store Dreamers (55%), and members of the Female Fun Squad (37%).




Lucky in Life Top of Mind Purchase IntentBase = All Respondents



Lucky in Life Stated and Estimated Purchase Intent

June 15, 2012

• Lucky in Life was most appealing to YES Men, C-Store Dreamers and Jackpot Hounds; at 100% awareness Crestwood expects about a quarter would try the game.






34%

28%17%

33%

37%

53%12% 29%

1%

4%

18%

15%

46%

57%

19%

37%

55%

68%

17%

28%

5%11%

23% 24%

Lucky in Life Stated and Estimated Purchase IntentBase = All Respondents



Lucky in Life Top of Mind Purchase Intent by Age & Ethnicity

June 15, 2012

Lucky in Life is more appealing to younger players and Hispanic or Latino players.



Lucky in Life Top of Mind Purchase Intent by Age & EthnicityBase = All Respondents



0.203281293996761 0.158398681349322%

o 0.211155533246891 0.202064721537936

14% Q0.149728055188985

0.129608195865810.056663501405101

715% Q

0.2037092820428950.168243610210885

0.220335129088804

0.158200988879387

0.210740327754384

0.339186897448143 40%p

0.312735319768703

0.388568153409826

0.331557477757321

0.117792753566328 0.128017181164152 0.11299967449599219% r

0.10734558590698


Lucky in Life Ease of Understanding & Differentiation




65%C

65%c

52%

64%C

72%aCd

72%aCd

48%C

51%C

31%

47%C

56%aCd

57%ACd

June 15, 2012

• Overall, approximately two thirds found Lucky in Life easy to understand, however, 48% agreed that it was new and different.

• The game appeared to resonate more strongly with the Jackpot Hounds and C-Store Dreamers than other segments who were less likely to perceive the game as differentiated.



Lucky in Life Ease of Understanding & Differentiation – Top-2 Box Summary (Agree)Base = All Respondents



Lucky in Life Perceptions

June 15, 2012

• Overall, players like the top prize, like choosing their own numbers or using Quick Pick, and like that they can win by just matching the Lucky Ball.

• Lucky in Life was not perceived positively for its odds, value, or as a game to play regularly.

TotalYoung,


Men


Splurgers

Female Fun

SquadC-Store


n= 1003 67 245 242 229 220[A] [B] [C] [D] [E] [F]

This game appears fun to play 52% CD 62% aCD 24% 37% C 64% ACD 74% AbCDeIn addition to the top prize, I like the other prizes available 57% C 56% C 35% 58% C 70% AbCD 69% AbCDI like the top prize 73% C 68% 58% 76% C 80% abC 82% AbCThere are lots of ways to win this game 50% C 57% C 37% 46% c 56% Cd 59% aCDI like the name of this game 55% C 50% C 30% 51% C 68% ABCD 72% ABCDThis game provides good value for my money 33% CD 48% ACD 11% 24% C 44% ACD 46% ACDI think this game has good odds 37% CD 58% ACD 16% 21% 49% ACD 47% ACDI think I would play this game regularly 30% CD 46% ACD 8% 18% C 40% ACD 44% ACDI like that this game is only played in Colorado, Oklahoma, and Arizona 48% C 54% C 26% 50% C 59% ACd 60% ACdI like having 2 drawings per week 54% Cd 69% ACD 29% 46% C 68% ACD 67% ACDI would rather be paid over time 40% f 41% 36% 43% cf 51% ACdF 33%I like that I can choose my own numbers or use Quick Pick 72% C 70% C 48% 73% C 85% AbCD 85% AbCDI like that I can win by just matching the Lucky Ball 68% C 68% C 45% 73% C 79% AbCd 79% AbCd



Lucky in Life – Top-2 Box SummaryBase = All Respondents


Lucky in Life Average Estimated Annual Purchases




5.0

10.0

15.0

20.0

25.0

30.0

35.0

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

19.4

30.2

7.2

12.0

22.824.5

19%

29%

7%11%

22% 24%

June 15, 2012

• Overall, respondents who would play Lucky in Life indicate they would buy it approximately 19 times per year or once or twice per month.

• YES Men (30 times per year/2 to 3 times per month) and Jackpot Hounds (25 times per year/twice per month) believe they would play the game most often while C-Store Dreamers, members of the Female Fun Squad, and Traditional, Older, Small Splurgers anticipate playing less often.



Lucky in Life Average (Mean) Estimated Annual PurchasesBase = All Respondents



Lucky in Life Estimated Plays per Purchase




2.6Cd

3.3ACDF

2.1

2.4c

3.0aCDf

2.6C

June 15, 2012

• On average, those who would play indicate they would purchase 2 to 3 plays per occasion.• YES Men and C-Store Dreamers would purchase more plays, on average, than the other segments.

Lucky in Life Average (Mean) Estimated Plays per PurchaseBase = Would Purchase Game





Lucky in Life Average Satisfactory Win Amount




$10

$6

$10 $10 $10

$6

June 15, 2012

Overall, a satisfactory win for Lucky in Life $10 would be satisfying for half of those Lucky in Life players surveyed.

Lucky in Life Average (Median) Satisfactory Win AmountBase = Would Buy Game





Lucky in Life Average Loss Tolerance




5.4C

4.5

3.8

6.2aBC

5.5bC

6.5ABCe

4.0

3.0 3.0

5.0

4.0

5.0

June 15, 2012

• Loss tolerance for Lucky in Life is fairly high (4-5 draws).• The Female Fun Squad, C-Store Dreamers, and Jackpot Hounds segments would be willing to play through

5-7 draws without a satisfactory win.

Lucky in Life Average Loss ToleranceBase = Would Buy Game


Q11. Earlier, you mentioned that you might purchase ___plays when buying this game. How many drawings would you be willing to go through before having a satisfactory win?





June 15, 2012







Perceived Delivery

Deriv

ed M

otiva

tion


Can win by just matching the Lucky Ball

Like that I can choose numbers or Quickpick

Would rather be paid over time

Like having 2 draws per week

I like that it's played only in CO, AZ and OK

I'd play regularly

Has good odds

Good value for my money I like the name

Lots of ways to win

I like the top prizeI like the other prizes available


Leveraging Lucky in Life for Maximum Trial• Strengths include appears fun to play, can win by just matching the Lucky Ball, I can choose my own

numbers or use Quick Pick, and I like the name.• Improving perceptions of I think I would play this game regularly and this game provides good value for my


June 15, 2012

Perceived Delivery

Deriv

ed M

otiva

tion




Leveraging Lucky in Life



Game appears fun to play Hot Button Cost of Entry Opportunity Opportunity Hot Button Hot Button

I like the other prizes available Cost of Entry Cost of Entry Hot Button Cost of Entry Cost of Entry Cost of Entry

I like the top prize Cost of Entry Hot Button Hot Button Cost of Entry Cost of Entry Cost of Entry

Lots of ways to win Irrelevant Opportunity Hot Button Cost of Entry Irrelevant Irrelevant

I like the name Hot Button Cost of Entry Cost of Entry Hot Button Cost of Entry Hot Button

Good value for my money Irrelevant Irrelevant Irrelevant Opportunity Irrelevant Opportunity

Has good odds Irrelevant Opportunity Irrelevant Irrelevant Irrelevant Irrelevant


I like that it's played only in CO, AZ and OK Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry

Like having 2 draws per week Cost of Entry Hot Button Cost of Entry Cost of Entry Cost of Entry Cost of Entry

Would rather be paid over time Irrelevant Irrelevant Irrelevant Irrelevant Irrelevant Irrelevant

Like that I can choose numbers or Quickpick Hot Button Hot Button Hot Button Cost of Entry Cost of Entry Hot Button

Can win by just matching the Lucky Ball Hot Button Hot Button Hot Button Hot Button Hot Button Hot Button

June 15, 2012


Lucky in Life Favorite Alternate Names




39%48%

e37% 40% 36%

42%

15%

19%

15% 12%13%

15%

46%b

33%48%

b48%

b 51%Bf

43%

June 15, 2012

• Overall, respondents are open to both names Lucky in Life and Daily Grand.• It should be noted that Lucky in Life results could be biased by the fact that it was the name the game was

evaluated under.• Lucky Life was the least favorite name.



Lucky in Life Favorite Alternate NamesBase = All Respondents



Lucky in Life Prize Alternate Structuring




5% d 2%8% abDe 3% 4% 5%

9% 9%11%

8% 8% 8%

50%B

29%

52%B 65%

ABceF 55%Bf 45%

b

21%d

22%

21% 16%

20%24%

d

15% CD

38%ACDEF

8% 8% 14% c 18% CD

June 15, 2012

• Most (86%) of the players surveyed were neutral or welcoming to the proposed restructuring of the payouts to one lump sum or to annual payments .

• More than one third (36%) of potential game buyers would be more likely to play if the game’s payout was restructured (50% were neutral).

• Only 15% of potential game buyers would be less likely to play if the payout was not daily.

Q17. Imagine you won the grand prize for the new game Lucky in Life of $1,000 per day for 30 years. If the Lottery were only able to deliver your winnings in one lump sum or 30 annual payments—instead of paying you every day, would you be…?


Lucky in Life Prize Alternate StructuringBase = Would Buy Game



Lucky in Life Preferred New Payment Schedule




45%

59%acdF

42% 44%49%

f 39%

55%b

41%58%

b56%

b51% 61%

Be

June 15, 2012

Overall, players indicate they would prefer a lump sum payout over annual payments.

Q18. Which payment schedule would you prefer for Lucky in Life? Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level

Lucky in Life Preferred New Payment ScheduleBase = Would Buy Game if the Payment were Restructured


Game Reviews



Colorado 3

Colorado 3 gives you lots of ways to win with just three (3) numbers.

Colorado 3 lets you pick your numbers and the different ways they come up, and you can win up to $500! Set your own strategy and you can win with more than one wager type.

To play Colorado 3:• Pick your three (3) numbers on the play slip, or choose Quick Pick.• Select the bet type you’d like to play:

o Straight – match your numbers in exact ordero Box – match your numbers in any ordero Straight & Box – both bet types in one wager

• Choose the draw you wish to play: midday, evening, or both.

You win if your numbers match the Lottery numbers according to your bet type.

Colorado 3 costs as little as $0.50 per bet; all wagers must be in increments of $1. Drawings are twice per day.

Sample ticket

Pick 3 numbers or select Quick Pick

Choose your bet type

Select the draw time

The fun new way to play with only 3 numbers and lots of way to win!

Colorado 3 Prizes

Bet Type Bet Amount Match

ExamplePrize Odds Your

Numbers Lottery Draws

Straight $0.50 Your numbers in exact order 125 125 $250 1,000Box $0.50 Your numbers in any order 125 125, 152, 215, 251, 512, 521 $50 167

Straight & Box $1.00

One Straight bet (exact order)125

125 $250 1,000One Box bet (any order) 125, 152, 215, 251, 512, 521 $50 167


Pick 3 Awareness & Penetration




76%b

60%

84%ABF

82%aBF 78%

Bf 70%

8% e

13%

5% 5%4%

12% aCDE

17% c28%

aCdef

11% 13% 17% c 18% c

June 15, 2012

• Most players had neither heard of nor played the game Pick 3 from another Lottery.• YES Men and Jackpot Hounds were most likely to be aware of Pick 3, though only 13% of the YES Men andf

12% of the Jackpot Hounds had ever played.

Q20. Have you ever heard of or played the game Pick 3 from another Lottery? Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level

Pick 3 Awareness & PenetrationBase = Would Buy Game



Colorado 3 Top of Mind Purchase Intent

June 15, 2012

• Approximately one-third of the players surveyed indicated they would be somewhat or very likely to purchase Colorado 3.

• Yes Men are the most likely to purchase the game (51%); C-Store Dreamers (45%), Jackpot Hounds (47%), and members of the Female Fun Squad (30%) also showed some interest.




Colorado 3 Top of Mind Purchase IntentBase = All Respondents





28%bdeF 18%

53%ABDEF

23%F

21%F

10%

17% B

4%

17% B

26%ABCE

13% b21%Be

22%

26%

20%

22%

22% 21%

24%C

21%C

8%

26%C

33%abCd 35%

AbCd

10% CD

30%ACDEF

1% 4% c12% CD 12% CD


Colorado 3 Stated and Estimated Purchase Intent

June 15, 2012

• Colorado 3 was most appealing to YES Men, C-Store Dreamers and Jackpot Hounds; at 100% awareness Crestwood expects a quarter or less would try the game.






24% 21%

8%

26%

33% 35%10%

30%

1%

4%

12% 12%34%

52%

10%

30%

45% 47%

13%

28%

3%9%

17% 18%

Colorado 3 Stated and Estimated Purchase IntentBase = All Respondents



Colorado 3 Top of Mind Purchase Intent by Age & Ethnicity

June 15, 2012

Colorado 3 is more appealing to younger players and Hispanic or Latino players.



Colorado 3 Top of Mind Purchase Intent by Age & EthnicityBase = All Respondents



0.276579125262113 0.27987538238083 0.275033882669802 0.273667795227022 0.27702892667489

0.168205126656953 0.17104591225802 0.166873403205687 0.151271929881418 0.17082131092347

0.215211435857503 0.203846081410189 0.220539366639658 0.22550049478538 0.213621772993413

0.24410637573136 0.222730047266464 0.254127321313440.180928834927907

0.25386732580111

0.0958979364920746 0.1225025766845

0.0834260261714167 17%

ar

0.0846606636071205


Colorado 3 Top of Mind Purchase Intent by Pick 3 Awareness

June 15, 2012

• Those who have heard of or played pick 3 from another Lottery we more interested in playing Colorado 3.• 24% of those aware of Pick 3 consider themselves very likely to purchase Colorado 3, whereas 10% of

those unaware would purchase the game.

Q2. Based on this description, if this game were available, how likely would you be to buy this game the next time you purchase lottery games? Q20. Have you ever heard of or played the game Pick 3 from another Lottery?


Colorado 3 Top of Mind Purchase Intent by Pick 3 AwarenessBase = All Respondents

Total (n=1,003), Aware of or Played Pick 3 (n=173), Unaware of Pick 3 (n=534)

Aware of or Played Pick 3 Unaware of Pick 32% 7%

18%18%

23%

30%

33%

35%

24%

10%


Colorado 3 Ease of Understanding & Differentiation




41%C

63%ACDEf

28%

41%C

41%C

48%aC

60%C

60%C

40%

60%C

72%AbCD 69%

ACd

June 15, 2012

• Colorado 3 was perceived easy to understand by less than half of the respondents surveyed, but it was considered differentiated by most players.

• Traditional, Older, Small Splurgers rated the game lower for both being easy to understand and for being differentiated than any other segment.



Colorado 3 Ease of Understanding & Differentiation – Top-2 Box Summary (Agree)Base = All Respondents



Colorado 3 Perceptions

June 15, 2012

• Overall, perceptions of Colorado 3 were not very positive.• Highest ratings were for I like that I can choose my own numbers to play, and I like that wagers start at just

$0.50 per play.• Only 21% of respondents indicated they would play the game regularly.

TotalYoung,


Men


SplurgersFemale Fun

SquadC-Store


n= 1003 67 245 242 229 220[A] [B] [C] [D] [E] [F]

This game appears fun to play 42% C 49% C 16% 43% C 53% ACd 59% ACDIn addition to the top prize, I like the other prizes available 44% C 56% aCD 25% 40% C 56% ACD 51% aCDI like the top prize 47% C 50% C 28% 48% C 55% aC 60% ACDThere are lots of ways to win this game 49% C 59% C 35% 50% C 59% ACdf 51% CI like the name of this game 39% Cd 52% aCD 21% 32% C 48% ACD 47% aCDThis game provides good value for my money 31% Cd 43% aCD 11% 25% C 41% ACD 43% ACDI think this game has good odds 31% C 44% aCD 12% 28% C 40% ACD 41% ACDI think I would play this game regularly 21% CD 43% ACDEf 5% 12% C 26% CD 32% ACDI like that I can choose my own numbers to play 62% C 59% C 43% 61% C 77% ABCD 71% AbCDI like that I can choose how my numbers come up 57% C 56% C 36% 56% C 74% ABCDf 65% aCdI like that I can play twice a day 31% Cd 48% ACD 11% 24% C 42% ACD 41% ACDI like that I only have to pick 3 numbers to play 59% C 63% C 37% 58% C 74% AbCD 70% ACDI like that wagers start at just $0.50 per play 62% C 59% c 45% 64% C 73% AbCd 72% AbCd



Colorado 3 Perceptions – Top-2 Box Summary (Agree)Base = All Respondents


Colorado 3 Average Estimated Annual Purchases




20.0

40.0

60.0

80.0

100.0

120.0

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

37.5Cd

97.7ACDEF

14.4

20.0c

29.0C

47.1ACDE

5%

13%

2% 3% 4% 6%

June 15, 2012

• Overall, respondents who would play Colorado 3 indicate they would buy it approximately 37 times per year or 3 times per month.

• YES Men (98 times per year/8 times per month) indicate they would play weekly while Jackpot Hounds, C-Store Dreamers, members of the Female Fun Squad, and Traditional, Older, Small Splurgers anticipate playing less often.



Colorado 3 Average (Mean) Estimated Annual PurchasesBase = All Respondents



Colorado 3 Average Estimated Plays per Purchase

June 15, 2012

On average, those who would purchase Colorado 3 indicate they would probably purchase 2-3 tickets at a time.

Colorado 3 Average Estimated Plays per PurchaseBase = Would Purchase Game







2.6d 2.5

2.3 2.3

3.0ACDF

2.4


Colorado 3 Average Estimated Spending per Purchase




$3 D

$4 cD

$3

$2

$3 cD $3

D

June 15, 2012

• Colorado 3 players anticipate spending $2 to $3 per play.• YES Men anticipate spending more per play versus the other players.

Colorado 3 Average Estimated Spending per PurchaseBase = Would Purchase Game


Q5. Colorado 3 wagers begin at $0.50 for a ‘Straight’ or ‘Box’ bet and are $1.00 for a ‘Straight Box’ bet. All wagers must be in increments of $1. With this in mind, how much do you think you would spend on Colorado 3 per play?



Colorado 3 Average Satisfactory Win Amount




$5

$10 $10

$6

$5 $5

June 15, 2012

• On average, a satisfactory win for Colorado 3 is $5.• Young, Entitled, Spontaneous Men and Traditional, Older, Small Splurgers have a much higher satisfactory

win requirement of $10.

Colorado 3 Average (Median) Satisfactory Win AmountBase = Would Buy Game





Colorado 3 Average Loss Tolerance




5C

4

4

6bC

6bC

6abC

4

3 3

4

5

4

June 15, 2012

• On average, respondents would be willing to play through 4 or 5 Colorado 3 draws without having a satisfactory win.

• The Female Fun Squad, C-Store Dreamers, and Jackpot Hounds segments have higher loss tolerance for Colorado 3, playing up to 6 draws.

Colorado 3 Average Loss ToleranceBase = Would Buy Game


Q11. Earlier, you mentioned that you might purchase ___plays when buying this game. How many drawings would you be willing to go through before having a satisfactory win?



Wagers start at just $0.50 per play

I only have to pick 3 numbers

I can play twice a day

I can choose how my numbers come up

Like that I can choose my own numbers

I'd play regularly

Has good odds


I like the name

Lots of ways to winI like the top prize



Leveraging Colorado 3 for Maximum Trial• Strengths include the game appears fun to play and I like that I can choose how my numbers come up,

promoting these will have positive effect as they are moderately motivating.• Improving perceptions of I think I would play this game regularly and this game provides good value for my


June 15, 2012

Perceived Delivery

Deriv

ed M

otiva

tion




Leveraging Colorado 3



Game appears fun to play Hot Button Hot Button Opportunity Hot Button Opportunity Hot Button

I like the other prizes available Cost of Entry Hot Button Hot Button Cost of Entry Cost of Entry Irrelevant

I like the top prize Cost of Entry Irrelevant Cost of Entry Cost of Entry Hot Button Cost of Entry

Lots of ways to win Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry

I like the name Cost of Entry Irrelevant Hot Button Irrelevant Irrelevant Cost of Entry

Good value for my money Opportunity Irrelevant Opportunity Irrelevant Irrelevant Opportunity

Has good odds Irrelevant Irrelevant Opportunity Irrelevant Irrelevant Irrelevant


Like that I can choose my own numbers Cost of Entry Cost of Entry Cost of Entry Hot Button Cost of Entry Cost of Entry

I can choose how my numbers come up Hot Button Cost of Entry Cost of Entry Hot Button Hot Button Hot Button

I can play twice a day Irrelevant Irrelevant Opportunity Irrelevant Irrelevant Opportunity

I only have to pick 3 numbers Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry

Wagers start at just $0.50 per play Cost of Entry Hot Button Cost of Entry Cost of Entry Cost of Entry Cost of Entry

June 15, 2012


Colorado 3 Favorite Alternate Names




24%d 24%

27%d

17% 21%27%

d

26%33% 29%

37%AEF 22%

24%

50%42% 44% 46%

57%abcd

50%

June 15, 2012

Colorado 3 was the preferred name evaluated though some of this may be due to the bias of Colorado 3 being the name used during the concept evaluation.



Colorado 3 Favorite Alternate NamesBase = Would Buy Game


Game Reviews



Lotto Plus

The new Lotto Plus wager on Colorado Lotto lets you multiply your Lotto winnings by 4 times!

You still play Lotto like normal, but with Lotto Plus, any winnings you might receive for Lotto will be multiplied by 4 (except the jackpot).

Adding Lotto Plus is easy:• Pick your six (6) Lotto numbers, or choose Quick Pick.• Select Lotto Plus on the play slip.

Adding Lotto Plus costs an additional $1 for a total of a $2 Lotto wager.

Increase your Lotto winnings with Lotto Plus!

Sample ticket

Play Lotto as you normally

would

Add Lotto Plus

Lotto Prizes

MatchesWithout

MultiplierWith Lotto

Plus Odds 6 Jackpot Jackpot 5,245,7865 $1,000 $4,000 24,2864 $50 $200 5553 $3 $12 37

Lotto Penetration


• About 80% of respondents have played Lotto in the past.• 93% of Jackpot hounds have purchased Lotto Plus.




80%C

81%c

70%

85%aCe 78%

c

93%ABCDE

Lotto PenetrationBase = All Respondents


S6. When did you last play each of the following Colorado Lottery games? Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level


Lotto Plus Top of Mind Purchase Intent




23%bEF

12%

48%ABDEF

23%bEF 14% F

6%

13%

8%

12%

16% b

15% b

12%

24%

27%

25%

28%e

21%

25%

30%C

32%C

15%

31%C

34%C 40%

ACd

11% CD21%aCD

1% 3%

17% aCD 16% aCD

June 15, 2012

• Less than half (41%) of the players surveyed indicated they would be somewhat or very likely to purchase the Lotto Plus.

• Jackpot Hounds are the most likely to purchase the game (56%) followed by YES Men (53%), C-Store Dreamers (51%), and members of the Female Fun Squad (34%).

• Traditional, Older, Small Splurgers found the game less attractive, only 16% indicated they were somewhat or very likely to purchase Lotto Plus.



Lotto Plus Top of Mind Purchase IntentBase = All Respondents



Lotto Plus Stated and Estimated Purchase Intent

June 15, 2012

• Lotto Plus was most appealing to YES Men, C-Store Dreamers and Jackpot Hounds; at 100% awareness Crestwood expects a little less than a quarter would try the game.






30%

32%15%

31%

34% 40%

11%

21%

1%

3%

17%16%

40%

53%

15%

33%

51%56%

15%

24%

4%10%

21% 22%

Lotto Plus Stated and Estimated Purchase IntentBase = All Respondents



Lotto Plus Top of Mind Purchase Intent – Lotto Players vs. Non Lotto Players

Total Lotto Players Non Lotto Players

23%

7%

35%

13%

13%

13%24%

25%

24%

30%

37%

23%

11%17%

5%

June 15, 2012

• Overall, Lotto Plus is more appealing to current Lotto Players though Non Lotto Players also found the concept moderately attractive.

• 55% of Lotto Players and 28% of Non Lotto Players indicated they were somewhat or very likely to purchase Lotto Plus.



Lotto Plus Top of Mind Purchase Intent – Lotto Players vs. Non Lotto PlayersBase = All Respondents



Lotto Plus Top of Mind Purchase Intent by Age & Ethnicity

June 15, 2012

Lotto Plus is more appealing to Hispanic or Latino players.



Lotto Plus Top of Mind Purchase Intent by Age & EthnicityBase = All Respondents



23%o 0.171160914715836

25%O 0.161366771953372

24%q

0.1288167807493550.154425103556801

0.116811931098809

0.1410185267260770.126931607130251

0.243565769536969 0.2575466469914330.237011715486433

0.184858434969103

0.25263607132709

0.295151637172124 0.28883774898778 0.298111506076204

0.291553966711366

0.295707478398108

0.106963854005118 0.1280295857481520.097088512138514

2 22%AR

0.0893139779620183


Lotto Plus Ease of Understanding & Differentiation




68%C

63%

54%

71%C

75%abC

78%AbCd

43%CD

59%ACD

24%

33%c

52%aCD

53%ACD

June 15, 2012

• Overall, Lotto Plus was perceived as easy to understand but not very differentiated from other games.• Only 24% of the Traditional, Older, Small Splurgers and 33% of the Female Fun Squad segments think that

Lotto Plus is new and different.



Lotto Plus Ease of Understanding & Differentiation – Top-2 Box Summary (Agree)Base = All Respondents



Lotto Plus Average Estimated Annual Purchases




14

23

4

8

17

22

19

26

8

11

21

25

June 15, 2012

• Overall, respondents who would play Lotto Plus indicate they would buy it approximately 14 times per year or about once a month.

• YES Men and Jackpot Hounds believe they would play the game most often (about twice per month) while C-Store Dreamers, members of the Female Fun Squad, and Traditional, Older, Small Splurgers anticipate playing less often.



Lotto Plus Average (Mean) Estimated Annual PurchasesBase = All Respondents



Lotto Plus Perceptions

June 15, 2012

• Two thirds or more agree that they like the top prize (66%), and 67% like being able to multiply winnings by 4.

• General perceptions of Lotto Plus tended to be less positive; less than a third of respondents feel this game provides good value for the money, think this game has good odds, think they would play this game regularly, or would want to play Lotto more often.

TotalYoung,


Men


SplurgersFemale Fun

SquadC-Store


n= 1003 67 245 242 229 220

[A] [B] [C] [D] [E] [F]This game appears fun to play 42% CD 52% aCD 16% 31% C 55% ACD 60% ACD

In addition to the top prize, I like the other prizes available 49% C 47% C 30% 49% C 61% AbCD 60% AbCD

I like the top prize 66% C 64% C 45% 68% C 74% AC 81% ABCD

There are lots of ways to win this game 36% C 42% Cd 18% 31% C 44% aCD 48% ACD

I like the name of this game 43% C 41% C 23% 39% C 55% AbCD 56% AbCD

This game provides good value for my money 29% CD 56% ACDEf 8% 19% C 36% aCD 42% ACD

I think this game has good odds 26% CD 51% ACDEf 7% 15% C 34% aCD 35% ACD

I think I would play this game regularly 26% CD 47% ACDe 4% 10% C 32% aCD 43% ACDe

I like being able to multiply my winnings by 4 67% bC 57% 50% 73% abC 78% ABC 78% ABC

This makes me want to play Lotto more often 24% CD 50% ACDEF 7% 16% C 32% aCD 32% aCD



Lotto Plus Perceptions – Top-2 Box SummaryBase = All Respondents


Lotto Plus Estimated Plays per Purchase




2.6Cd

2.3

2.0

2.4c

3.0AbCD 2.8

bCD

June 15, 2012

Those who would purchase Lotto Plus would buy on average 3 plays per purchase.

Lotto Plus Estimated Plays per PurchaseBase = Would Purchase Game





Lotto Plus Estimated % of Time Purchasing Game




50%C

48%

41%

49%c

52%C

55%abCd

June 15, 2012

Those who would buy Lotto Plus would purchase the add-on about half the time.

Lotto Plus Estimated % of Time Purchasing GameBase = Would Buy Game


Q5a. What percent of the time do you think you might spend the extra $1 to add the Lotto Plus option?



Lotto Plus Average Satisfactory Win Amount




$10 $10 $10

$12

$10 $10

June 15, 2012

Overall, a satisfactory win for Lotto Plus would be $10, $2 dollars less than the actual minimum win.

Lotto Plus Average (Median) Satisfactory Win AmountBase = Would Buy Game







June 15, 2012







Perceived Delivery

Deriv

ed M

otiva

tion


Makes me want to play Lotto more often

Like multiplying my winnings

I'd play regularly

Has good odds


I like the nameLots of ways to win




Leveraging Lotto Plus for Maximum Trial• The only strength identified for Lotto Plus is that the game appears fun to play, promoting this will have

positive effect as they are moderately motivating.• Improving perceptions of I think I would play this game regularly and this game makes me want to play

Lotto more often are opportunities as they are considered motivating but prospective players are not yet sold on them.

June 15, 2012

Perceived Delivery

Deriv

ed M

otiva

tion




Leveraging Lotto Plus



Game appears fun to play Hot Button Cost of Entry Hot Button Cost of Entry Hot Button Hot Button

I like the other prizes available Cost of Entry Irrelevant Cost of Entry Cost of Entry Cost of Entry Cost of Entry

I like the top prize Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry Cost of Entry

Lots of ways to win Irrelevant Irrelevant Irrelevant Irrelevant Irrelevant Irrelevant

I like the name Cost of Entry Irrelevant Cost of Entry Cost of Entry Cost of Entry Cost of Entry

Good value for my money Irrelevant Cost of Entry Irrelevant Irrelevant Irrelevant Irrelevant

Has good odds Irrelevant Opportunity Irrelevant Opportunity Irrelevant Irrelevant


Like multiplying my winnings Cost of Entry Cost of Entry Cost of Entry Hot Button Cost of Entry Hot Button

Makes me want to platy Lotto more often Opportunity Opportunity Opportunity Opportunity Opportunity Irrelevant

June 15, 2012


New Game Preference

June 15, 2012


Favorite Game




29% 26% 27% 29% 30% 31%

16% 21% 21% 19%11% 13%

37% 30% 32%38%

44% 37%

18% 24% 20%14% 15% 19%

June 15, 2012

• Overall, 5 Card Cash was favored more than any other game evaluated; the game had particularly strong appeal with the C-Store Dreamers (44%) though the game was preferred by approximately one third or more of all surveyed.

• Lucky in Life was preferred by 29% of those surveyed and its appeal was fairly equal across all segments.• Colorado 3 and Lotto Plus had lower appeal overall across all audiences.



Favorite GameBase = All Respondents



Reasons for Favorite Game Selection

Colorado/Arizona 3Perceived winnability and costs were considered strengths. There was also some recognition of Numbers play from other jurisdictions.

“Best chance to win.”“Because it has good odds and a good price.”

“Less risky.”“Quick & easy.”

“I like the $.50 bets.”“ONLY COST $1.00 TO PLAY.”“Kind of like horse betting.”

“Because we had a game similar to this in Michigan.”“It was fun, appeared to be a better deal.”

June 15, 2012

Lotto PlusAs an add-on to the current Lotto game, Lotto Plus’ strengths were it’s ease of application, it’s cost and the 4X multiplier factor.

“Easy to understand.”“Easy to understand - bigger payoff.”

“I like lotto already so $1 more doesn't seem horrible. Also like the winnings times 4.”“Quadruple the winnings.”

“4 times win.”“Best result possibilities for the money.”

5 Card CashEase of play, the Poker style theme, and odds were considered strengths.

“Easiest to play and understand.”“Simple, buy it! Check it! Celebrate!”

“It seemed the most fun.”“I like that you don’t have to select numbers”

“I like the Poker element and fact that you can spot a winner without having to wait for a drawing.”

“I like that the concept is different than a typical drawing and I prefer cards to other forms of gambling.”

“Seemed mostly likely to win.”“better odds”

Lucky in LifeStrengths included the games top prize and the name. The game was also perceived to be different from existing games.“The whole appeal to me with a lottery is that it is possible to

win a jackpot that will change your life...the others games don't offer a real jackpot.”

“Like the concept of $1000 per day for life.”“1000 a day for 30 years top prize.”

“I LIKE THE NAME.”“I like the name and the fact that I can win $1000/day.”

“It has the best overall winnings and is the most different from games I already play. It is a good value for my money as well.”

Q14. Why did you select [Insert game most preferred from Q12 (Q12=1)] as the game you liked least?


Least Favorite Game




17% 19% 16% 19% 14% 19%

32%37%

24%34% 42% 30%

18%

22%

24%

17% 15%14%

32%22%

35% 31% 29%36%

June 15, 2012

Overall, the least favorite concepts were Colorado 3 and Lotto Plus – each was ranked last by 32% of the respondents.



Least Favorite GameBase = All Respondents



Reasons for Least Favorite Game Selection

5 Card CashPoker themes can be polarizing and some don’t like Poker and card related themes.

“Don’t like poker/don't like cards.”“I don't play cards so the concept seems more complicated

to me.”“Hard to understand completely.”

“Seems like a lot of hassle AND I don't like cards.”“I like the game, I just don't poker that much. It's still a

good game. They all are.”“Odds are too high. There should be a higher payout for

non-top winning –prizes.”

June 15, 2012

Lucky in LifeThe game was perceived to have poor overall odds and was found to be complicated.

“Are you kidding... 13 million to 1 odds.”“The odds are to big and I do not like the game.”

“Too complicated.”“Just didn't seem all that different from other games out

there and the name is silly.”“I believe this reminds me as how the Powerball is now

played. Besides I am cheap and would rather only pay a 1.00 and chance to win.”

Lotto PlusFor players who did not like Lotto, Lotto Plus did little to change their opinion. Others believed there may have been changes made to the current game.

“I don’t have very good luck with lotto.”“I have never liked the Lotto and Lotto Plus is just a

multiplier for the original game.”“It didn't appeal to me.”

“1-40 sometimes it seems like the regular games – nothing new.”

“Too similar to what is already available.”

ColoradoColorado 3 was perceived to be confusing by many; the odds were not perceived to be favorable and the top prize was perceived as being too small. Two draws per day were seen as excessive.

“To complicated.”“Confusing!”

“The largest prize is only $500?”“Didn't like the top prize.”

“The ROI is low for the amount of time and effort it requires.”“2 times a day drawings are too many. Can’t get to a store 2 times a day don’t like the odds seems to hard to figure out.”

Q13. Why did you select [Insert game most preferred from Q12 (Q12=1)] as the game you liked best?


Forecast Dynamics

June 15, 2012

New Game Sales Forecasting

• The Crestwood Model is based upon the volumetric formula shown on the right. The model forecasts a “sustaining sales rate.”

• Cannibalization is calculated independently, outside the model

• Elements that the model cannot account for in this test include:– The final game structure and graphics– Brand name changes– Brand development programs– Breadth of retail distribution– Retail merchandising– Game promotions..


Unaided Game Awareness X

Expected Trial RateX

Purchase Dynamics(quantity & frequency)

XPrice

XExpected Loyalty

(loss tolerance & game odds)=

Annualized Sales


Sustaining Sales Forecast

5 Card Cash Lucky in Life Colorado 3

Estimated Unaided Awareness

High 25% 25% 25%

Low 12% 12% 12%

Sustaining Gross Sales @ Awareness Levels

High $34.4M $11.5M $4.3M

Low $16.5M $5.5M $2.1M

Sustaining Per Cap @ Awareness Levels

High $0.13 $0.04 $0.02

Low $0.08 $0.02 $0.01

June 15, 2012

• Game sales on all games will be dependent on awareness generated.• 5 Card Cash generates the highest sales potential, followed by Lucky in Life and Colorado 3 (Lotto Plus is

shown following)• Sales forecast is for sustaining levels, post introductory efforts.

Notes: 1. Awareness levels based upon SWAG and 2010 Image Study reported 46% Match Play “aided” awareness.2. Balance of forecast based upon key business metrics and Crestwood formula


Lotto Plus Sales Forecast

Current Players Non Players

% of Lottery Players 46% 54%

Current Sales $39.3M

Assumed Lotto Plus Awareness 100% 10%

Estimated Trial 22% 10%

Purchases per PlayLotto $1

Lotto Plus $1 $1

Gross Sales

Lotto $39.3M $0.4M

Lotto Plus $4.5M $0.4M

Total $43.8M $0.9M

Estimated Sales Increase

Within Segment 11% 100%

Total 14%

June 15, 2012

• Lotto Plus is expected to increase Lotto sales by up to 14%; almost all gains will come from Players.• Minimal cannibalization of current sales is expected as the majority of transactions appear to be single

ticket.

A

B

C

D

E

F

G

H

10

1

7

4

2

9

6

5

A

C

F

G

6

5

10

1

F

A 6

5

A = 28%

B = 3%

C = 23%

D = 13%

E = 5%

F = 23%

G = 2%

H = 2%

Using logistic regression the individual responses to a tournament of lottery games can then be turned into “preference shares”. These shares represent the likelihood that the player will choose each of the games they rated. While not ideal for individual predictions of behavior, in the aggregate this method has been shown to be a powerful predictor of consumer choice and an excellent way to assess cannibalization.

Tournament Process for Cannibalization Estimates



Sources of Growth – Cannibalization of Existing Games

June 15, 2012

• Much of the spending would result from cannibalization of existing products with 2-3% incremental sales.• More than half of the spending is predicted to be cannibalized from Scratch (24% - 27%) and Powerball

(27%) while 22% to 26% of the spending would come from the existing Lotto game.• Cash 5 would see few adverse effects.• Retained Match Play sales will probably merge into other games in general.

Sources of Growth and CannibalizationBase = All Respondents (n=1,003)


27% 25% 24% 22%

4% 3% 5%5%

3%3% 4%

3%

22%23%

26%24%

14% 16%12%

14%

27% 27% 27% 30%

3% 3% 2% 2%


Demographics & Respondent Profile

June 15, 2012


Demographics

June 15, 2012



n= 1,003 67 245 242 229 220[A] [B] [C] [D] [E] [F]

Gender Male 50% E 50% e 57% aE 51% E 39% 53% EFemale 50% c 50% 43% 49% 61% AbCDF 47%

Age

18-24 years 13% CD 22% ACDf 6% 7% 18% ACD 16% aCD25-34 years 19% C 30% aCdef 13% 20% C 21% C 20% C35-44 years 18% 21% 16% 24% aCe 17% 20%45-54 years 20% b 12% 24% aBdE 17% 15% 23% bde55-64 years 16% b 6% 19% Bf 17% b 18% b 12%65 years and older 14% 10% 22% abdEF 15% 11% 10%

Race

White or Caucasian 84% B 72% 89% ABEF 90% ABEF 82% b 80% bBlack or African American 4% cd 9% aCDef 2% 2% 4% 5% cAsian 3% C 14% ACDEF 1% 3% c 2% 2%Other [Please Specify] 10% bD 5% 8% D 5% 12% BcD 13% aBcD

Ethnicity Spanish, Hispanic, or Latino 13% CD 16% cD 8% D 4% 17% CD 18% aCDNot Spanish, Hispanic, or Latino 87% f 84% 92% AbEF 96% ABCEF 83% 82%

Education

Some high school 2% 1% 2% 1% 1% 2%High school graduate 11% cD 7% 7% 6% 17% abCD 14% bCDSome college or training 39% C 40% 30% 37% c 43% C 44% CBachelor’s Degree 31% 31% 33% 37% ae 27% 31%Post-graduate degree 17% eF 22% eF 28% AdEF 19% eF 12% 9%

Employment Status

Employed full-time 43% c 51% c 37% 48% C 44% 44% cEmployed part-time 10% D 10% 8% 5% 14% aCD 10% dSelf-employed 8% b 2% 11% aBef 9% b 6% 7%House Spouse 6% 4% 4% 5% 6% 9% cdStudent 7% C 17% ACDEF 5% 8% c 7% c 6%Retired 18% 12% 26% abdeF 18% 16% 14%Not currently in the workforce 7% b 2% 7% b 6% 5% 10% beOther 1% B - 2% B 2% b 2% b 1%

Income

Less than $25,000 18% D 28% acDe 16% d 10% 18% d 19% D$25,000 to just under $45,000 22% Bc 11% 16% 23% Bc 27% BC 26% Bc$45,000 to just under $55,000 12% b 6% 13% b 12% 14% b 12%$55,000 to just under $75,000 14% 11% 12% 14% 16% 16%$75,000 or more 34% e 43% Ef 42% aEF 41% aEF 26% 28%

Marital StatusSingle 26% C 33% C 20% 26% c 30% C 27% cMarried/cohabitating 59% 62% 65% adef 57% 55% 57%Divorced/widowed/separated 15% B 5% 15% B 17% B 15% b 16% b

Household Size (Average) 2.6 CD 3.0 ACDE 2.4 2.3 2.5 d 2.8 ACDE


Game Penetration

June 15, 2012

Game PenetrationBase = All Respondents

S6. When did you last play each of the following Colorado Lottery games? Upper case letters indicate significance at the 95% confidence levelLower case letters indicate significance at the 80% confidence level



n= 1,003 67 245 242 229 220

[A] [B] [C] [D] [E] [F]

Powerball 90% C 86% 83% 93% C 91% C 96% AbCe

Mega Millions 72% C 72% c 58% 73% C 77% C 83% AbCD

Lotto 80% C 81% c 70% 85% aCe 78% c 93% ABCDE

Matchplay 39% Cd 47% Cd 30% 32% 41% Cd 47% aCD

Cash 5 45% cD 49% cd 38% 36% 45% cd 56% ACDe

Scratch or Instant Games (of any value) 85% bC 74% 71% 86% bC 95% ABCD 94% ABCD


Average Weekly Spending by Game

June 15, 2012

Average Weekly Spending by GameBase = All Respondents

S9. Thinking about all of the Colorado Lottery games that you buy and play, approximately how much money do you usually spend on each one of these games in a typical week?




n= 1,003 67 245 242 229 220

[A] [B] [C] [D] [E] [F]

Powerball $2.48 CD $4.22 ACDE $1.11 $1.68 c $2.67 CD $3.49 ACDe

Mega millions $2.39 CD $4.55 ACDEF $1.13 $1.51 c $2.57 CD $2.94 aCD

Lotto $1.74 CD $3.24 ACDEF $0.87 $1.00 $2.08 aCD $2.04 aCD

Matchplay $1.65 cD $3.85 ACDF $0.92 d $0.51 $1.96 d $1.52 cD

Cash 5 $1.47 CD $4.42 ACDeF $0.56 $0.47 $1.80 cd $1.31 CD

Scratch or instant games (of any value) $3.80 CD $7.58 ACDEf $1.11 $2.19 c $4.47 CD $5.10 ACD


Appendix

June 15, 2012

5 Card Cash

5 Card Cash is a game where you get 2 ways to play your hand—an instant win game and an evening draw game with one ticket.

You can win up to $100,000 in the nightly drawings and $5,000 instantly.

When you play 5 Card Cash, your ticket will print with 5 quick picked playing cards.

You win instantly if your 5 Card Cash hand is a pair of Jacks or better, and the words "Instant Winner" will print right on your ticket. You can also win again in the nightly drawings by matching 2 or more cards in any order.

Cost per play: $2.

A fun new way to play Poker where your hand has 2 ways to win!

Sample ticket

Instant Win PrizesPoker Hand Prize Odds

Royal Flush $5,000 649,740 Straight Flush $1,000 72,193 4 of a Kind $100 4,165 Full House $40 694 Flush $25 509 Straight $15 255 3 of a Kind $7 47 2 Pair $4 21 Pair of J, Q, K, A $2 10

Overall Instant Win Odds: 6

Draw Game PrizesMatches Prize Odds

5 $100,000 2,598,9604 $1,000 11,0593 $25 2402 $2 16

Overall Draw Game Odds: 15

Check your instant win

hand to see if you won instantly!

Check your draw wins

that evening for the same

cards

Colorado 3

Colorado 3 gives you lots of ways to win with just three (3) numbers.

Colorado 3 lets you pick your numbers and the different ways they come up, and you can win up to $500! Set your own strategy and you can win with more than one wager type.

To play Colorado 3:• Pick your three (3) numbers on the play slip, or choose Quick Pick.• Select the bet type you’d like to play:

o Straight – match your numbers in exact ordero Box – match your numbers in any ordero Straight & Box – both bet types in one wager

• Choose the draw you wish to play: midday, evening, or both.

You win if your numbers match the Lottery numbers according to your bet type.

Colorado 3 costs as little as $0.50 per bet; all wagers must be in increments of $1. Drawings are twice per day.

Sample ticket

Pick 3 numbers or select Quick Pick

Choose your bet type

Select the draw time

The fun new way to play with only 3 numbers and lots of way to win!

Colorado 3 Prizes

Bet Type Bet Amount Match

ExamplePrize Odds Your

Numbers Lottery Draws

Straight $0.50 Your numbers in exact order 125 125 $250 1,000Box $0.50 Your numbers in any order 125 125, 152, 215, 251, 512, 521 $50 167

Straight & Box $1.00

One Straight bet (exact order)125

125 $250 1,000One Box bet (any order) 125, 152, 215, 251, 512, 521 $50 167

Lotto Plus

The new Lotto Plus wager on Colorado Lotto lets you multiply your Lotto winnings by 4 times!

You still play Lotto like normal, but with Lotto Plus, any winnings you might receive for Lotto will be multiplied by 4 (except the jackpot).

Adding Lotto Plus is easy:• Pick your six (6) Lotto numbers, or choose Quick Pick.• Select Lotto Plus on the play slip.

Adding Lotto Plus costs an additional $1 for a total of a $2 Lotto wager.

Increase your Lotto winnings with Lotto Plus!

Sample ticket

Play Lotto as you normally

would

Add Lotto Plus

Lotto Prizes

MatchesWithout

MultiplierWith Lotto

Plus Odds 6 Jackpot Jackpot 5,245,7865 $1,000 $4,000 24,2864 $50 $200 5553 $3 $12 37

Lucky in LifeLucky in Life gives you the chance to win $1,000 per day!

Playing Lucky in Life is easy: just pick five (5) numbers from 1 to 40 and a “Lucky Ball” number from 1 to 21 on the play slip, or choose Quick Pick.

You win if you match the Lucky Ball or at least two (2) numbers drawn by the lottery. If you match all 5 numbers and the Lucky Ball, you win $1,000 per day.

The $1,000 per day is for 30 years. Lucky in Life is played in Colorado, Oklahoma, and Arizona. Drawings are held twice a week.

Price per play is $2.

Win $1,000 every day!

Sample ticket

Numbers Matched

Lucky Ball Match Prize Odds

5 1 $1,000 per day 13,818,168 5 0 $25,000 690,908 4 1 $2,000 78,961 4 0 $100 3,948 3 1 $50 2,322 3 0 $10 116 2 1 $15 211 2 0 $2 11 1 1 $5 53 0 1 $4 43

Overall Odds of Winning a Prize: 7

Choose 5 numbers and 1 Lucky Ball number or use Quick

Pick

Check your numbers in the drawing to see

if you won.

Documents

Colorado Lottery New Game Research Collaborative Review June 15, 2012