STATE OF OKLAHOMA OKLAHOMA LOTTERY COMMISSION OFFICIAL MINUTES February 27, 2013 Date The Oklahoma Lottery Commission Retail Advisory Board held its regularly scheduled meeting February 27, 2013 at 11:00 a.m. The Meeting was held in the Conference Room of the offices of the Oklahoma Lottery Commission at 3817 North Santa Fe Avenue, Oklahoma City, Oklahoma. In compliance with the Open Meetings Act, 25 O.S. § 301 et seq., the agenda for this meeting was posted at the main and side building entrances of the Centennial Business Building at 3817 North Santa Fe Avenue, Oklahoma City, Oklahoma. The agenda was also posted to the Oklahoma Lottery Commission’s website. The agenda is attached as Exhibit A. AGENDA ITEM 1: CALL TO ORDER. Ricky McCullough called the meeting to order at 11:02 a.m. The roll of Board members was called to establish quorum. Board members present were: Kathy Brakefield Raymond Pang Kelly Clem Steve Woodley Kenny Smith Mike Alberty Based on the result of the roll call, a quorum was declared present. Others in attendance were: Rollo Redburn; LaToshya Riley; Sheila Franklin; Ricky McCullough; Sonia Horner; John Hayes; Mary Martha Ford; Brandie Reisman; Bryan Colbert; Mike Hohmann; and Jay Finks. AGENDA ITEM 2: ANNOUNCEMENT OF FILING OF REGULAR MEETING NOTICE AND POSTING OF THE AGENDA IN ACCORDANCE WITH THE OPEN MEETINGS ACT. Ricky McCullough verified that proper public notice was made with regard to the February 27, 2013 regular meeting, in accordance with the Open Meetings Act and that all necessary steps had been taken to remain in compliance with the Act. AGENDA ITEM 3: READING AND APPROVAL OF MINUTES. (Exhibit B) Mr. Alberty moved that the reading of the minutes of the September 19, 2012 Regular Meeting be waived and approved as published and distributed. The motion was seconded by Mr. Smith. The motion passed. AGENDA ITEM 4: EXECUTIVE DIRECTOR’S REPORT: Mr. Redburn gave an oral presentation regarding upcoming bills that could potentially affect the lottery and steps taken to circumvent any detrimental effects some of the aforementioned bills might have. Mr. Redburn then went into detail regarding the lottery’s bill, authored by Mike Shelton, which would eliminate the 35% profit requirement, thus allowing more money to be generated for education. This is evidenced by case studies done in other states, which have shown large profit increases after the removal of their profit restrictions. Additionally, Mr. Redburn gave an update on the Gaming RFP, which is in the final stages. The contract price will increase by approximately 2 million; additional funding will have to be pulled from prizes. The lottery’s proposed rule change regarding a decrease in retailer compensation is still active. If passed, this would mitigate potential retailer loss of sales and commissions due to decreases in prize payouts. AGENDA ITEM 5: SALES UPDATE: Mr. McCullough gave an oral presentation regarding current lottery sales and FY2014 projected sales. AGENDA ITEM 6: MARKETING STRATEGIC PLAN: Mr. Finks gave an oral presentation regarding instant ticket marketing strategies and potential prize cuts due to increased cost in the new gaming contract. AGENDA ITEM 7: PRESENTATION OF NEW OLC PROMOTIONS. Mr. McCullough gave an oral presentation regarding current state-wide promotions, which include Highlighter Dispensers, which will highlight the top four new games. AGENDA ITEM 8: DISCUSSION AND POSSIBLE ACTION REGARDING CALENDAR YEAR 2013 MEETING DATES FOR THE LOTTERY COMMISSION RETAILER ADVISORY BOARD. Tabled to next meeting. AGENDA ITEM 9: NEW BUSINESS. No new business. AGENDA ITEM 10: ADJOURNMENT. The Board adjourned by general consent. OFFICIAL MINUTES: The action taken by the Oklahoma Lottery Commission Retailer Advisory Board on the items for consideration after motion duly made and seconded has been noted herein and made a part of these minutes. The Board caused the entire proceeding of the meeting, excepting any executive sessions, to be recorded on a digital audio recording device to be retained as a record in the office of the Board. Exhibits are A through B. Minutes Approved by the Retailer Advisory Board on February 19, 2014. 3 | Page Lottery Commission Minutes February 27, 2013