Benefits Older Pennsylvanians.
Every Day.
OCTOBER 2010 www.palottery.com
V O L U M E 7 N O . 8
l PA LOTTERY UPDATES MEGA
MILLIONS l HELPFUL ACCOUNTING
HINTS l MID-DAY VS. EVENING
DRAWINGS l NUMBERS GAMES PAY OFF
FOR PA LOTTERY PLAYERS l 2010 HOLIDAY GAMES AND
GRAND-A-DAY RETURNS l SELL LIKE A CHAMPION!
l OUT WITH THE OLD,
IN WITH THE NEW l PROBLEM GAMBLING: THE
HIDDEN ADDICTION
Thank you! Gracias! Dhanyavaad! Toda raba! Grazie!
Whatever language you speak, the message remains the same: The Pennsylvania Lottery appreciates our retailers and everything you do.
Working together with our network of more than 8,500 retailers across the state, the Pennsylvania Lottery was able to achieve an increase in profits for fiscal year
2009-10, despite a tough economy. Last year was the fifth-best year for ticket sales and fourth-best for profits in the Lottery’s history, and it was made possible by your hard work and partnership.
While we experienced a rough first half of the fiscal year, the Lottery finished strong in the last two quarters and topped $3.065
billion in sales for 2009-10. Despite a slight decline in sales compared to the prior year (under 1 percent), net revenue to the Lottery Fund actually increased by more than $5 million to total about $916 million in profits for programs benefiting older Pennsylvanians.
As you know, the Pennsylvania Lottery does more than generate profits for senior programs. We also help generate additional foot traffic and other sales in businesses in all 67 counties, from mom-and-pop corner stores and family-run restaurants to larger grocery stores and convenience chains. In 2009-10, Lottery sales generated more than $160 million in bonuses and commissions for retailers. This is a great achievement we hope to beat in 2010-11.
As a Lottery retailer, you probably hear a lot of questions from your customers, like, “Where does all of the Lottery’s money go?” You can be proud to work with
Lottery because for every dollar in tickets sold, the Lottery contributes about 30 cents to senior programs. Lottery proceeds are going toward several programs that help people in your community – property tax and rent rebates; free transit and reduced-fare shared rides; the low-cost prescription drug programs PACE and PACENET; long-term living services; and the 52 Area Agencies on Aging, including more than 600 full- and part-time senior centers throughout the state.
l MONTCO RETAILER HELPS
WINNERS CLAIM SOON-TO-
EXPIRE PRIZE
In addition, you can let your players know that out of every dollar spent on
Lottery tickets, about 61 cents is returned to players in prizes. In fact, Lottery players won $1.87 billion last year, or nearly $15 million more than the prior fiscal year.
As we continue to evaluate our performance last year, the Pennsylvania Lottery is looking forward to a great 2010 holiday season and continued success with our retailer partners in 2011.
Thank you for your tireless efforts as we work to fulfill our mission: Benefiting Older Pennsylvanians. Every Day.
Best in Selling,
Ed Trees, Executive Director

All good business owners know that change is an essential part of the marketplace, and it’s something we pride ourselves on at the Pennsylvania Lottery. When
Pennsylvania launched Mega Millions sales in January, we told our players and retailers that we would monitor the game’s performance and make changes to keep the game exciting. With a recent update, we are doing just that.
Starting with the Sept. 14 drawing, Pennsylvania Lottery players who purchase a Mega Millions ticket with the
Megaplier option and match five of five white ball numbers now win a set prize of $1 million.
Previously, a Mega Millions ticket with the Megaplier option that qualified for a second-tier prize by matching the first five winning numbers, but not the Mega Ball number, won
$500,000, $750,000 or $1 million, depending on that drawing’s Megaplier number. With the Sept. 14 game change, all match-five Megaplier prizes are $1 million, regardless of the Megaplier number drawn.
Players can add the Megaplier option to Mega Millions purchases for an extra $1 per play. The Megaplier multiplies all prizes other than jackpot and second-tier prizes by the drawing’s randomly selected Megaplier number – two, three or four.
This change to the Mega Millions game makes the multiplier option similar to that of Powerball®, which also offers a set prize of $1 million for each Powerball/Power
Play ticket that matches the first five numbers.
Let your regular Powerball and Power Play players know about this update to Mega Millions and Megaplier. We hope this change will help create more million dollar winners in
Pennsylvania!
Since Mega Millions’ introduction in Pennsylvania, the
Pennsylvania Lottery has sold 18 match-five tickets, including two tickets worth $1 million after the Megaplier change. Here are the lucky selling locations:
Acme Market 7725 in Philadelphia
Giant Eagle 0665 in Cranberry Township,
Butler County
Sheetz 166 in Port Allegany,
McKean County
Giant Eagle 6345 in North Versailles,
Allegheny County
Sheetz 219 in Harrisburg,
Dauphin County
Sunoco in Philadelphia
Rutters 65 in Chambersburg,
Franklin County
Vennard’s Crossroads Convenience in Indiana,
Indiana County
Carlisle Petro Stopping Center 336 in Carlisle,
Cumberland County
Giant Food Store 427 in Willow Grove,
Montgomery County
Oley Sunoco in Oley,
Berks County
Sunoco 08516 A Plus in Philadelphia
Giancarlo’s Restaurant in DuBois,
Clearfield County
Turkey Hill 064 in Lebanon,
Lebanon County
Mod Laundromat in Brownsville,
Fayette County
Family Deli II in Holland,
Bucks County
Sheetz 159 in Conneaut Lake,
Crawford County
Turkey Hill 196 in Wilkes-Barre,
Luzerne County

The Lottery is offering a new Mega Millions promotion that will keep your players motivated to play the game at all jackpot levels. The promotion is only available for
$12 million and $15/$16 million jackpots, which are the first two jackpot amounts following a jackpot hit.
In addition to adding value for players when the Mega
Millions jackpot is lower, this promotion encourages players to try Megaplier®. The Megaplier option, which costs $1 per play, multiplies all prizes other than jackpot and second-tier prize by the drawing’s randomly selected Megaplier number – two, three or four.
After a Mega Millions jackpot is hit, the following promotion will go into effect:
Buy a block of five Mega Millions with Megaplier tickets
($10) and get one free Mega Millions with Megaplier ticket ($2) for the next draw.
Players can select Quick Pick or use a playslip for the required purchase.
The promotion is available through WAVE terminals and
PlayCentral Terminal machines.
Lottery will notify retailers and players by the following means when the promotion is in effect:
RETAILERS
Terminal messages
Tel-Sell
Flyers inserted in replacement orders
Retailer Corner and Retailer
Calendar on the Lottery website
PLAYERS
Messages at the top of tickets
Lottery in Motion Systems (LIMS) advertising screen
Pennsylvania Lottery homepage and VIP
Players Club landing page
Scrolling messages during the evening drawing show
When the promotion is in effect and a player makes a qualifying purchase, the free ticket will automatically be printed – there’s nothing you need to do to generate the ticket.
Be sure to tell your players who like Powerball, but maybe never tried Mega Millions, when this promotion is in effect. Who knows? That free Mega Millions/Megaplier ticket could be the one that wins the first Mega
Millions jackpot in Pennsylvania, or a $1 million second-tier prize!

You may have noticed a lot of players coming into your store to cash winning tickets for The Daily Number and Big 4 over the past few months. It’s true – the numbers games have paid off big for our players, as triple numbers have been drawn 14 times this year and quadruple numbers have come up in three drawings in
2010. That makes 2010 a record year for triples in Pennsylvania Lottery history, and this year also ties the previous record for most quads.
What does it all mean for Pennsylvania Lottery players and retailers? As you probably know, triples and quads are popular numbers with Lottery players. When those numbers hit, the Lottery pays out much more in prizes than it takes in for that drawing. However, the Lottery does take steps to protect the Lottery Fund by maintaining a $20 million liability cap for The Daily Number and $10 million for Big 4.
The liability caps mean number combinations can sell out throughout the day and without warning for retailers. For example, once a Daily Number combination has been played to the point where $20 million would be paid out if those numbers were drawn, that combination is sold out. Given the popularity of triples and quads, those numbers are often the first to sell out, so let your players know to purchase their numbers as early as possible, even up to seven days in advance.
Triples and quads have paid off handsomely for Pennsylvania Lottery players in 2010. For the 14 drawings this year when triples came out, the Lottery paid out more than $42.5 million in total winnings on nearly 170,000 winning tickets. When quads came out in three drawings in 2010, the Lottery paid out almost $23.5 million for about 9,400 winning tickets.
One of the most interesting events for the Pennsylvania Lottery in 2010 was the Big 4 drawing on March 31, when the number 7-7-7-7 came out. That resulted in a total payout of $7.77 million for 3,107 winning tickets.
Players who enjoy playing quad sevens in the Big 4 were excited, since the last time that number combination was drawn was Dec. 28, 2003.
While the March 31 drawing was a big payday for players whose lucky numbers are sevens, it wasn’t the biggest Big 4 payout of the year for the Pennsylvania Lottery. On July 1, the evening Big 4 drawing resulted in a total payout of $10 million – the maximum – to 4,000 winners who had played 8-8-8-8. That number combination hadn’t been drawn since Sept. 15, 1995.
The biggest Daily Number payout in 2010 happened on August 18 when triple fours were drawn, awarding more than $4.9 million to 20,000 winning tickets.
While Powerball and Mega Millions might have the big jackpots, the numbers games – The Daily Number, Big
4 and Quinto – continue to have a steady core of players who are loyal to their numbers. Providing them quick and easy payouts when they win will keep them loyal to you!

With the holiday season just around the corner, the Pennsylvania Lottery will be introducing its lineup of holiday instant games on Nov. 2. There are six new games, one at each price point, for players to scratch and win for themselves or buy as gifts for friends, family, colleagues and service providers.
Once again in 2010, the Pennsylvania Lottery will offer retailers an additional 5 percent bonus for selling the six holiday instant games. Here’s the game lineup:
Merry Millionaire is a new $20 instant game that offers three top prizes of $1 million and more than
600 prizes from $1,000 to $100,000. Players can win up to 20 times on each ticket. The game’s overall odds are 1-in-3.26.
The new $10 holiday game from the Pennsylvania
Lottery is Winner Green , which offers 10 top prizes of $250,000 and 20 prizes of $50,000. Each ticket offers 15 chances to win. The overall odds for Winner
Green are 1-in-3.41.
The Pennsylvania Lottery’s $5 instant game for the
2010 holiday season, $now Globe Ca$h , offers 12 top prizes of $100,000 and more than $25 million in cash prizes. Players have 12 chances to win on each ticket. The game’s overall odds are 1-in-4.21.
The new $3 instant ticket, Frosty Match & Win , offers 10 prizes from $30,000 to $60,000 and more than $11 million in cash prizes. Each ticket offers 12 chances to win. The overall odds for Frosty Match &
Win are 1-in-4.20.
Jingle Bell Doubler is a $2 game offering 10 top prizes of $25,000 and more than $12 million in cash prizes. Players can win up to 10 times on each ticket.
The overall odds for Jingle Bell Doubler are 1-in-
4.22.
The $1 holiday instant game for 2010 is Happy
Holidays , which offers 140 top prizes of $1,000 and more than 3.4 million winning tickets. The game’s overall odds are 1-in-4.77.
In 2010, the Pennsylvania Lottery is bringing back the Grand-A-Day Holiday Giveaway promotion, which gives players a second to chance to win with the six holiday instant games.
The Pennsylvania Lottery will hold five weekly drawings, randomly selecting 70 winners of $1,000 each week. In total, $350,000 in cash prizes will be awarded to 350 winners.
To be eligible for the Lottery’s Grand-A-Day Holiday
Giveaway, players must mail in non-winning
Pennsylvania Lottery 2010 holiday instant tickets totaling at least $20. Players should sign and fill out the back of each ticket, place $20 worth of nonwinning tickets in an envelope no larger than 4 1/8 inches by 9 1/2 inches and mail to the following address:
Pennsylvania Lottery Grand-A-Day Holiday
Giveaway 2010
P.O. Box 4539
Middletown, PA 17057-4539
Players may enter as many times as they like, but they can only win once each week. The entry deadlines are as follows:
Friday, Nov. 12
Friday, Nov. 26
Friday, Dec. 10
Friday, Nov. 19
Friday, Dec. 3
For additional details and a poster to print and post at your store, please visit www.palottery.com.

Fall is football season, and Pennsylvania is proud to be home to two of professional football’s best teams – the Pittsburgh Steelers and Philadelphia Eagles.
The Pennsylvania Lottery, for the second straight year, is partnering with these two franchises to offer exciting $5 team-inspired instant games. Put these games on the shelf or in a Lottery machine to inspire football conversations and instant games sales at the same time. Whether your customer base includes diehard
Eagles fans, fanatic Steelers fans or both (carry both games to inspire a sales competition between fanbases!), it’s a win-win situation.
Each team’s $5 instant game offers players six top prizes of $100,000 and more than $15 million in total cash and prizes. Players have 12 chances to win instantly on each ticket, plus they can enter non-winning tickets into separate second-chance drawings for chances to win any hundreds of exciting prizes including home game tickets, road trips, autographed jerseys and more.
Remaining Deadlines for the Eagles™ and Steelers ®
March 24, 2011.
Games Second-Chance Drawings: Nov. 19, 2010;
Entry and prize details are available on the Lottery website, www.palottery.com
.
Share these stories – from second-chance drawing winners who got to spend quality time with the Eagles and
Steelers last season – with your customers to encourage them to enjoy the fall football season even more with
Steelers® and Eagles™ 2010 instant games from the Pennsylvania Lottery.
Steelers VIP Road Trip
Jessica Schuler of Breinigsville, Lehigh County, had never won a thing in her life. An Eagles fan, she was surprised when she became a top-prize winner in a
Steelers™ second-chance drawing last year. Jessica won a VIP road trip, including free air travel to Ft.
Lauderdale, Fla., a two-night hotel stay and four tickets to a Steelers away game.
Jessica, her fiancé and two friends had the time of their lives last winter, ringing in the new year with the
Pittsburgh Steelers.
“We ate breakfast with the team, received field passes to the January 3 Miami Dolphins – Pittsburgh Steelers game and watched the game from box seats,” said
Jessica. “We also had the pleasure of meeting Mr. Dan
Rooney, owner of the Steelers, and tried on last year’s
Super Bowl ring!”
Jessica bought her Steelers™ tickets at a Turkey Hill in
Allentown, and she submitted three non-winning tickets to enter a second-chance drawing.
“Who would have ever thought this would happen to me? The whole experience was truly unforgettable,”
Jessica said.
Draft Day with the Eagles
Mike Wade of Philadelphia is a diehard Eagles fan, and he was delighted to hear he was a second-chance winner from the Pennsylvania Lottery’s Eagles™ instant game. In April, Mike attended the Eagles draftday luncheon with team coaches and draftees, inspiring his Eagles enthusiasm right through the offseason into the 2010-11 football season.
Mike buys his Lottery tickets at a BP station in the Wynnefield section of
Philadelphia, and he also won a Pennsylvania
Lottery’s Saturday Spin second-chance drawing.
“It seems that I’ve found a new way to win the Lottery,” he said.
“I’ve become a secondchance Lottery winner.”

The increased use of ticket checkers and 2-D barcodes has rendered sight validation codes and benday patterns obsolete, so beginning with the
Dec. 28, 2010, instant games, the Pennsylvania
Lottery will eliminate these outdated security measures from all future instant games.
Sight validation codes, the three letters that float in the play area and correspond to specific prize amounts (i.e., TEN = $10 prize), were a necessity in the early years of the lottery industry. They were a quick – but not foolproof – way for retailers and players alike to verify visually if an instant ticket was a winner or not. Automated ticket checkers now perform that function faster, easier and more securely. Players simply scan the 2-D barcode on the front of the ticket to learn instantly and accurately whether or not they’ve won a prize.
Benday patterns, the muted multi-colored fingerprint pattern found in the play area of instant tickets, will be eliminated as well. Now that terminal-based validation systems are the standard in the lottery industry, benday patterns are outdated features that can detract from the readability of prizes in the play area.
The Pennsylvania Lottery began adding 2-D barcodes to instant games in July 2009. Starting in
December, the Pennsylvania Lottery will overlay the 2-D barcode area with the words “Scratch to
Cash” to remind players to reveal this portion of the ticket before presenting it for payment.
This decision by the Pennsylvania Lottery is consistent with that of many other U.S. lotteries that have stopped using sight validation codes and benday patterns. These lotteries have reported little to no negative reaction from retailers and players. In fact, many players like how easy it is to read the play area without the distracting images.
The Pennsylvania Lottery’s Retail Operations
Division reports that retailers are experiencing improved scanning accuracy, reduced clerk validation time and increased player convenience through the implementation of ticket checkers and
2-D barcodes. The Lottery’s Security Department is pleased with the reduction of fraudulent attempts to redeem non-winning tickets and the secure means of confirming a winning prize. The
Lottery’s Marketing Division will enjoy the extra play area that will offer players and retailers an enhanced experience of playing an instant game.
This change will be a win for your players and employees, as well!

With the latest system release on Sept. 10, the Lottery and its vendor, Scientific Games, made several enhancements to the WAVE and PlayCentral Terminal machines that will assist in your day-to-day operations by improving the reports you should run on a regular basis.
Retailers should run the following report every night at closing:
• Daily Activity – This report will enable you to balance your present day’s activity.
Retailers should run the following reports every Tuesday morning after 7 a.m.:
• Weekly Settlement – This report lists the summary of activity broken down by instant and online activity for the previous sales week. The report also includes the commission earned for the week.
The total due will be withdrawn from your account.
• Combined Weekly Settlement (for retailers with PCT/WAVE) – The total due is the combined total for both pieces of equipment. The report also includes the commission earned for the week. The total due will be withdrawn from your account.
• Adjustment Details – This report lists all adjustments that affect your weekly settlement, such as wires (appear as O/L adjustments) and balances forward (credits from the previous week’s settlement).
Retailers should run the following report every Wednesday morning after 7 a.m.:
• Weekly Settled Packs – This report shows which packs were force-settled by the Lottery, so you are aware of packs for which you will be charged on the following Tuesday’s settlement.
The Daily Activity, Weekly Activity, Weekly Settlement and Combined Weekly Settlement reports now display payouts in four different categories:
• Pay – prizes of $600 or less.
• Pay (Claim) m Typically for prizes of $601 - $2,500.
m Also includes tickets less than $100 and older than 180 days.
m Indicates winning tickets scanned by other retailers and paid by you.
• Claim Only m Typically for prizes over $2,500.
m Also includes tickets greater than $100 and older than 180 days.
• Claim (Pay) – Indicates winning tickets scanned at your location but not paid by you.
In addition, the Daily Activity report now shows instant and online promotions in detail. Returned packs for adjustment, both full and partial pack returns, are displayed as “Returns.” These figures are calculated in the “Instant Net.”
The new Weekly Settlement report displays the week number and date range for the report. It provides details for all adjustments and promotions, as well as any balances forward for the online or instant sections.
Many of these report enhancements were suggested by Pennsylvania Lottery retailers. We welcome your feedback, and if you have any questions, please reach out to your District Lottery Representative or
Lottery headquarters staff.

Many Pennsylvania Lottery retailers and players have asked about the differences between the midday drawings and those in conducted in the evening during our live drawings show. The basic difference is in the way winning numbers are selected: midday drawings are performed using Random Number
Generator (RNG) computers, and evening drawings are conducted by drawing balls similar to pingpong balls. The Lottery uses different security procedures for mid-day and evening drawings, but the procedures have the same basic objective: maintaining the integrity of the games.
Drawings officials conduct mid-day and evening drawings, and independent auditors observe and examine the procedures for both kinds of drawings.
For the mid-day drawings, an independent laboratory certifies the RNG machines. Staff members and auditors separately document the proceedings, which are conducted under video surveillance. However, many of the security aspects protecting the mid-day drawings are contained within the RNG software. Numerous pre-draw electronic samples ensure the machine is functioning properly and the numbers are selected at random. After the drawings are complete, Lottery staff members generate animations to depict winning numbers for each game, then upload the animations to the Lottery website.
Many players watch the evening drawings live on television and observe the balls being drawn. What viewers do not witness, however, are the detailed security procedures that precede and follow each live drawing.
Two senior witnesses participate in the process each night, which takes up to three hours to complete.
The witnesses, auditors, cameras, drawings officials and television production staff all play different roles in the drawings process, which begins with unlocking the secure area, selecting the machines and ball sets to be used and checking and breaking security seals protecting the drawing equipment.
Then each ball is weighed, each machine is tested for proper functioning and a dozen practice draws are conducted to test for statistical randomness.
Even after the official drawings are televised live, the drawings process continues through additional tests and post-draws, before all balls and drawings machines are sealed, logged and returned to the secure storage area, which has multiple access protections and is under constant video surveillance.
The Pennsylvania Lottery also participates in the
Powerball and Mega Millions drawings, which are conducted in Florida and Georgia, respectively. Local
Lottery officials in these states use a series of similar security measures to conduct the drawings for the multi-state jackpot games. In addition, all participating lotteries must follow specific security guidelines to ensure the integrity of these games.
The Lottery has developed its security procedures to ensure all numbers have an equal chance of being drawn and every player has an equal chance to win.
The overall integrity of our games is of paramount importance to the Lottery, our retailers and our players.
The Council on Compulsive Gambling of
Pennsylvania (CCGP) manages a 24-hour hotline that provides information and referrals for people with gambling problems or who are concerned about someone who is gambling. The hotline number is 1-800-848-1880.
Here’s how a typical call to the compulsive gambling hotline might start:
“Hello, problem gambling helpline, how can I help you today?”
“I’m not sure, I have a problem and I don’t know what to do. My family hates me, my boss has given me one last chance, the bank and my creditors are all screaming for money I owe and
I have just gambled away my last paycheck. I have nothing, and I just can’t go home.”
At the Council, we hear stories like this one every day. However, it was not until 1980 that the
American Psychiatric Association adopted the term
Pathological Gambling and established the criteria for identifying a gambling disorder.
Continued on Page 10

Continued from Page 9
Today, approximately 3 or 4 percent – or more than
300,000 Pennsylvanians – have a gambling problem.
Today it is common to see a message to play responsibly on Lottery tickets, billboards and casino signs. This message is a reminder that problem gambling is real and a warning to be careful. The warning, in most places, is followed by the problem gambling helpline number. Despite the number’s availability, sometimes individuals may need assistance in reaching out for help.
As a Lottery retailer, you may see the same customer day after day buying and scratching off dozens and dozens of lottery tickets. Perhaps they curse at the end, perhaps they cry or maybe they make a weak joke like, “There goes the rent money again.” Anytime you may see or hear something that suggests to you there may be a gambling problem, we can offer support.
Be a bridge to help connect the customer to the help they may need. Let them know the help is free and completely confidential. Offer one of the brochures from the CCGP (ask your DLR for copies, if you need them), point out the gambling helpline number on your printed materials, and remind them that the phone number is shown on the crawl, every other night, on the Pennsylvania Lottery’s televised drawings show. Even if someone turns down your first offer of help, your customer will know it is there when he or she is ready for it.
Problem gambling is a real psychiatric disorder. As a society, we are starting to acknowledge that, just as with an alcohol or drug addiction, a problem gambler is not a bad person, but rather a good person with a bad problem.
The Council’s message for the network of more than
8,500 Pennsylvania Lottery retailers is that you can help in the fight against problem gambling. For more information and resources, please check out our website, www.pacouncil.com.
When Khalid Khokhar, owner of the 7-Eleven Inc. in Maple Glen, was notified by the Pennsylvania Lottery that he sold a soon-to-expire $200,000 Powerball ticket, he immediately posted a sign on the door advising patrons to check old Powerball tickets. The unclaimed ticket was set to expire on July 25, leaving two weeks for players to claim their prize.
John Zarroli of Southampton, Montgomery County, who is a regular Lottery player and patron of the
7-Eleven, noticed the sign on the door but couldn’t believe players hadn’t checked their tickets.
“There was a sign on the door saying a winning Powerball ticket bought there had not been claimed and it was going to expire July 25,” said Zarroli. “I kept asking what idiot doesn’t check their tickets, so when I told my wife about it, she decided to double-check our stack. Our deal is, I buy them, and she checks them.
Fortunately, she keeps them all.”
Zarroli and his wife, Kristen, claimed the prize just in time, and Khokhar received a $500 bonus for selling the winning ticket.
Don’t miss out on your chance to help your players join the long list of winners in Pennsylvania! See your
District Lottery Representative to learn more about advertising for promotions, product placement and pointof-sale materials.
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RETAILER CONNECTION
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RETAILER CONNECTION
SHOULD BE ADDRESSED TO:
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