The “ Mountain Road ” Lottery of 1768

1. History of Lottery • 1700s: Many of our Founding Fathers played and sponsored lotteries. • George Washington operated a lottery to finance construction of • the Mountain Road, which opened westward expansion from • Virginia. The “Mountain Road” Lottery of 1768 Courtesy of Scientific Games Historic Lottery Memorabilia Collection

2. 1700s: Many of our Founding Fathers played and sponsored lotteries. • Benjamin Franklin used lotteries to finance cannons for the • Revolutionary War. Continental Congress Lottery - 1776 Courtesy of Scientific Games Historic Lottery Memorabilia Collection

3. 1790 to the Civil War: Fifty colleges, 300 schools and 200 churches were erected with lottery proceeds. Most notably, universities such as Harvard, Yale, Princeton and Columbia were funded by lotteries. Harvard College Lottery - 1811 Courtesy of Scientific Games Historic Lottery Memorabilia Collection

4. 1964: The New Hampshire Legislature created the state lottery, the first legal lottery in this century; it was labeled a "Sweepstakes" and tied to horse races to avoid the 70-year-old federal anti-lottery statutes. Lou Smith (l) of Rockingham Park racetrack sells the first New Hampshire Sweepstakes ticket to Governor John W. King on March 12, 1964

5. 1974: Massachusetts offered the first scratch-off ticket. Courtesy of Scientific Games Historic Lottery Memorabilia Collection

6. On-line Draw Games 1975: The New Jersey Lottery introduces the first online numbers game in the U.S. 1978: Massachusetts and New York launch the first lotto games in the U.S. as offline products 1982: The Interprovincial Lottery Corporation launches LOTTO 6/49, Canada’s first nationwide on-line terminal lottery game 1985: Tri-State Megabucks is the first multi-state lottery, with sales in Maine, New Hampshire and Vermont

7. Video Lottery Terminals 1989: South Dakota is the first lottery to introduce video lottery terminals (VLTs) at bars and clubs 1990: VLTs are launched in New Brunswick and Newfoundland & Labrador Sports Lottery 1989: Oregon introduces the first long-running sports lottery in the U.S.; the games based on professional sports would continue until 2007 1990: Sports betting is added to the Western Canada Lottery Corp. product line

8. 1987: The Multi-State Lottery Association is formed with six initial members 1988: Lotto America is the first multi-state lotto game offered by the Multi-State Lottery Association 1992: Powerball replaces Lotto America as the flagship game of the Multi-State Lottery Association with 16 member lotteries 2013: On May 18th a record jackpot of $590.5 Million Powerball jackpot was won in Florida by Gloria C. Mackenzie. It’s the largest jackpot ever paid to a sole winner. Information courtesy of The Wagering Resource (www.wageringresource.com) and Powerball (www.powerball.com)

9. 1996: The Big Game launches with six member states 2002: The Big Game becomes Mega Millions. Information courtesy of The Wagering Resource (www.wageringresource.com) and Mega Millions (www.megamillions.com) 2012: On March 30th a record $656 Million jackpot was won in three states (IL, KS, and MD)

10. 2004:PlaySphere launches in August 2004, it is the first regulated online gambling site in North America. 2013:Atlantic Lottery becomes the first regulated lottery in Canada to offer award show bets.

11. 2011:Illinois is the first U.S. lottery to contract with a private firm, Northstar Lottery Group, for day-to-day operation and management tasks. 2012: On March 25, 2012, the Illinois Lottery became the first U.S. lottery to offer regular ticket sales via the Internet.

12. History of Lotteries • In 1970, there were only 4 U.S. and Canadian lottery organizations in existence.

13. History of Lotteries • Today, there are 53

14. The North American Lottery Industry • In the early 80’s, there were only 14 states and the 5 Canadian lottery organizations in existence. • Today, there are 44 state lotteries plus DC In FY ‘13, US gross sales were in excess of 60 billion.

15. Last year, it is estimated that more than $700 billion was wagered on all games in the United States. • The $60 billion wagered on by U.S. lotteries is a drop in the bucket -- or only 8.5% of the total dollars wagered.

16. In FY ‘13, of the $60 billion in gross lottery sales, over $38 billion was returned to the players in the form of prizes. • More than $21 billion was returned to the states as net profit, and more than $4 billion was paid to the 200,000 retailers who sell lottery products throughout North America.

17. Where The Transfers Go • Education, parks and recreation, capital construction, compulsive gaming assistance, crime control, economic development, environment & natural resources, police/firefighter pensions, property tax relief, public buildings, revenue sharing, roads and highways, senior citizen programs, state government assistance, teachers’ retirement, tourism, etc. • In Canadian jurisdictions, lottery revenue supports a variety of programs including health care in British Columbia, in addition to providing a portion, if not all, revenue to the general revenue funds in every jurisdiction.

18. Since the inception of the first US lottery in 1964 in New Hampshire: • US lottery organizations have generated more than $1.1 trillion in gross sales • contributing more than $350 billion to support programs/services

19. and more than $64 billion to lottery retailers • And more than $641 billion paid out in prizes • on less than spending an average of 10% in operating expenses, and 1.17% on advertising

20. In other words, • During the 16,972 days lottery products have been sold in North America:

21. an average of $37.8 million in prizes has been won each and every day since 1964 In FY ‘13 alone, • on the average, more than $104 million was awarded in prizes every day

22. or $4.4 million every hour • or $73,333 every minute of every day in FY ‘13.

25. 5-Year Lottery Sales