2020 Annual Report_op

Director’s Comments 1

FY 2020 Highlights 2

Sales and Retailer Earnings 4
Lottery Sales by Year and Game 4

Prizes 5

Fund Transfers
Where the Money Goes 9
Economic Development Initiatives Fund 10
Veterans Benefit Tickets 11
Lottery Ticket Vending Machines 11

Expanded Lottery — Casinos and Other Expanded Gaming 12
Boot Hill Casino 13
Kansas Start Casino 14
Hollywood Casino 15
Kansas Crossing 16

Financial Statements
Statement of Net Position 17
Statement of Revenues, Expenses, and Changes
in Net Position 18
Statement of Cash Flows 19

Kansas Lottery Administrative Staff 20

Kansas Lottery FY 2020 Annual Report |i

While fiscal year sales, like Powerball and Mega Millions, to
2020 began as have much lower advertised prize amounts.
a normal year, Lower jackpots led to slower sales of those
we all know it games, which ultimately led to the games
certainly didn’t having to change their rules in response to the
end that way. current sales environment.
It’s hard to These situations were completely out of our
discuss all the control, so we chose to focus on the things we
positive things could better control, such as our instant scratch
we were able to games, our second-chance prizes through our
accomplish as PlayOn® Players Lotalty Program, and using
an organization our new vending machines to encourage
with the contactless ticket purchasing. Countless hours
looming cloud of research and development of new games
Stephen Durrell, of COVID-19 and prizes, as well as exciting partnerships
Executive Director with new properties, contributed to a 12.3
percent increase in our instant game sales
hovering above compared to FY 2019.
us. However, despite all the uncertainty and Before trips and events began to get cancelled,
rapid change, I am so proud of the way the we sent Kansas Lottery winners all over the
Lottery was able to adapt and fight forward country in amazing once-in-a-lifetime prizes
through it all. through PlayOn®. We sent four winners to
Las Vegas in the Vegas Jewels promotion, two
In terms of revenues, in FY 2020, traditional winners to the CMA Country Music Awards
lottery and casinos transferred a combined in Nashville, two winners to New York City
$167.8 million to the State of Kansas. This as part of the Powerball First Millionaire of
is a dip from previous years, but it was not the Year promotion, 20 winners to Chiefs
unexpected. As the COVID-19 virus began to games, and 30 winners to the October races
spread, mitigation efforts were put into place. at Kansas Speedway!
On March 17, all operations at the Lottery The uncertainty of FY 2020 will assuredly
Gaming Facilities were suspended due to roll into FY 2021, but we are committed to
the outbreak. Many Kansas Lottery retailers continuing to innovate and develop new and
closed temporarily or chose to stop selling fun ways to engage with our players, and to
lottery products during the initial months of continue to generate revenue for the state. It
COVID-19 spread in the United States. The will be a challenge, but with our talented staff
impact this had on sales was incredible, but we at both the Kansas Lottery and our partners
certainly were not the only state or industry in the state casinos, I am confident that we
feeling these effects. can find a way forward that is safe, fun, and
effective.
Nationwide during lockdowns, fewer players
were able to purchase lottery tickets, especially
in states without any sort of iLottery presence.
This contributed to the national jackpot
games whose jackpots grow higher based on

Kansas Lottery FY 2020 Annual Report | 1

$1 Million Prize Claimed Triple Motor Mayhem Winner

July 9, 2019 – A Sedgwick County resident August 13, 2019 –
claimed a $1 million Powerball prize more Jimmy Gray picked
than six months after the December 29, 2018, up the 2019 Ford F-150
drawing. Raptor SuperCab
he won through
the Kansas Lottery’s
Triple Motor Mayhem
ticket. Gray said the
first thing he would do
with his new truck is to
visit family in Texas.

$1.08 Million Super Holiday Millionaire Raffle
Kansas Cash Prize Won Returns

August 28, 2019 – A dedicated Super Kansas September 1, 2019 –
Cash player bought a ticket in Lenexa that The annual Holiday
matched all five numbers and the Super Cash Millionaire Raffle
Ball to win the $1,088,070 jackpot! game came back
for the 11th straight year, boasting more than $2 million
Fabulous Las Vegas Trip in prizes, which included four huge Early Bird drawings!
for Two
Triple Motor
October 4, 2019 – Four Mayhem Finale
winners were drawn for an Event
incredible trip to Las Vegas
as part of the Vegas Jewels October 30, 2019 – An
promotion! The winners and Emporia man won a
their guests stayed for three $90,000 Ford vehicle in the
nights in the Entertainment Kansas Lottery’s Triple Motor
Capital of the World and Mayhem Finale Event in
were able to choose Manhattan as part of the
two of six experiential Lottery’s second-chance
activities. The winners won drawing! The nine other
by entering non-winning finalists went home with between $1,500-$10,000 in
tickets from the Jewel 7s cash!
family into PlayOn®.

Trip for Two to CMAs NYC Chance at $1 Million

November 13, 2019 – Two players and their guests December 30, 2019 – Two players rang in 2020 at
travelled to the 2019 CMA Country Music Awards, Dick Clark’s Rockin’ New Year’s Eve Party, where
an all-inclusive trip they won in a second-chance one person became 2020’s first Powerball millionaire!

drawing in PlayOn®!

Winning Holiday Millionaire Raffle

Number Announced; Prize Claimed

January 2, 2020 – In a live television broadcast, Stephen Durrell, Executive
Director, unveiled the winning Holiday Millionaire Raffle number for the
$1 million prize! The anonymous winner came in just days later to claim
the huge prize, telling the Lottery her winning ticket was the only one she
bought! The winning ticket was bought at Hy-Vee Gas 1658 in Topeka.

Kansas Lottery FY 2020 Annual Report | 2

$528,417 Super Kansas “Wheel of Fortune” Live
Cash Jackpot Claimed Taping Winners

February 10, 2020 – February 13, 2020 – Two lucky Kansans won
Donna and Alan Gardner a trip to Los Angeles to watch a live taping
matched all five numbers of “Wheel of Fortune!” The winners won
and the Super Cash Ball on the trip by entering non-winning “Wheel
February 8 to claim the half- of Fortune” tickets into PlayOn®!
a-million-dollar prize! The
ticket was sold at Kwik Shop Ticket Checker in PlayOn®
752 in Baldwin City.
March 10, 2020 – Players can scan their tickets
State Casino Operations into the PlayOn® app to check if they are
Suspended winners with the Ticket Checker function!

March 17, 2020 – After consultation with the Prize Claim Protocol Changes
Kansas Governor’s Office and the Kansas
Racing and Gaming Commission, the Kansas March 18, 2020 – The Kansas Lottery temporarily suspends
Lottery announced suspension of all state- accepting in-person claims in response to COVID-19.
owned casino gaming starting March 17, 2020.
The decision was made following Governor State Employees Placed on
Laura Kelly’s executive order to ban gatherings Admin. Leave for Two Weeks
of more than 50 people in response to the
COVID-19 pandemic. March 23, 2020 – Governor Laura Kelly announced most
state employees would be placed on administrative leave
Powerball, Mega Millions starting Monday, March 23, 2020, and ending April 6, 2020,
Changes to help mitigate the spread of COVID-19. Because of this,
the Kansas Lottery will be suspending most operations
April 4, 2020 – The Powerball Product Group during this period. Drawings were still held, but all claims
and the Mega Millions Consortium adjusted processes were halted.
the games’ starting jackpots to $20 million and
eliminated minimum roll increases between Only Mail-in Claims Accepted
drawings. The changes were in direct response
to slowing sales during the global pandemic. April 4, 2020 – After being on administrative leave for two
weeks, the Lottery begins processing mail-in claims.
FB Live House Parties
April 17, 2020 – In response Refunds Offered for Qualifying
to COVID-19, the Social Powerball, Mega Millions Tickets
Media Director for the
Kansas Lottery begins April 11, 2020 – Because of the Powerball and Mega
hosting “House Parties,” Millions changes, the Kansas Lottery decided to reimburse
where commenters can players who purchased multi-draw tickets for Powerball
win swag, coupons, and and Mega Millions if certain qualifications are met. Players
PlayOn® points! were allowed to keep their tickets and redeem any prizes
won, and were asked to send copies of their tickets as
Back-to-Back Jackpot Wins instructed in the claims forms. Reimbursement for both
games were made in the form of coupons.
April 29 and May 2, 2020 – The Super Kansas Cash
jackpot was hit in back-to-back wins! The first win Bahamas Trip for Two
on April 29 was for $260,000 and the second win
on May 2 was for the starting jackpot of $100,000. June 5, 2020 – Four lucky players and their guests will
trade in sunflowers for seashells as they vacation in the
State Casino Operations Bahamas! The trip can be taken within one year.
Allowed to Resume
In-Person Claims Resume
May 22, 2020 – State casino operations were
allowed to resume May 22, 2020, following June 24, 2020 – After nearly three months of only accepting
Governor Laura Kelly’s May 20 executive order to mail-in claims, the Kansas Lottery allows in-person claims
move the state into a revised Phase 2 of the “Ad by appointment to begin. Several health and safety
Astra: A Plan to Reopen Kansas,” which allows measures were implemented to make this possible.
state-operated casinos to resume operations,
pending state and local regulatory approval.

Kansas Lottery FY 2020 Annual Report | 3

Total Sales Prizes Paid

Retailer Earnings $69,127,789
94 95 96 97 State Transfers*
152292802 177074245 182113628 185356681
*The t9ra8nsfer amount 9in9cludes a direct tra0n0sfer of $1,260,00001
1920r1ev7e3n1uto0e pwrao1sg9gr8aemn9e2sr0atht9ead8t 5bthernoeufigth1K9tha2ne5ssa6asl0em8oi0lfi0t$ar1ya1vne8dt4e$r,2a7nK2s7.aTn,1sh5aiss9

Lottery Veterans Benefit instant scratch tickets.

$300 m Kansas Lottery Sales by Year
$275 m
$250 m 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
$225 m
$200 m
$175 m
$150 m
$125 m
$100 m
$75 m
$50 m
$25 m

$0 m

Breakdown of FY 2020 Traditional Lottery Sales, by Game,
Compared to 2019 Sales
Game Type FY 2020 FY 2019 % Change
Powerball $ 23,691,169 $ 35,707,327 (33.7) %
Mega Mi9l4lions 1957,981,876 98 289,9997,959 00 (44.9) %01
95 96

L1o5t2t2o92A8m02eri1c7a7074245 182113628 1853566851,32139,2403167310 198920698,5567,701982560800 (11884.9,7)27%,159
Lucky for Life 5,232,604 5,655,846 (7.5) %
Super Kansas Cash 8,946,552 21,077,568 (57.6) %
2by2 18535668711,,76051729,,2550571937310 1,610,272 (0.2) %
P1i5ck22392802 177074245 182113628 198920798,0590,761952560800 1894.,3727%,159

Keno 11,523,376 13,157,552 (12.4) %
Racetrax 5,236,598 5,791,350 (9.6) %
Holiday Millionaire Raffle 3,850,760 4,000,000 (3.7) %
Instants/Pull Tabs 185,845,618 165,625,843 12.3 %
$ 274,992,121 $ 295,282,190 (6.9) %
TOTAL ALL GAMES

Kansas Lottery FY 2020 Annual Report | 4

Large Prizes Claimed in FY 2020
July 1, 2019, through June 30, 2020

Powerball Winners - $50,000 or More

Date of Claim Amount Where Ticket Was Sold

July 8, 2019 $ 1,000,000 QuikTrip 329R – Wichita
July 8, 2019 50,000 Khan Petroleum – Mankato
September 17, 2019 50,000 Thai An Oriental Market – Wichita
October 21, 2019 50,000
October 23, 2019 50,000 Dillons 10 – Hutchinson
December 5, 2019 50,000 QuikTrip 384R – Wichita
January 2, 2020 50,000 Woods Mini Mart 5 – Lawrence
January 21, 2020 50,000
February 27, 2020 50,000 Dillons 12 – Wichita
February 28, 2020 50,000 Casey’s General Store 2950 – Coffeyville
April 7, 2020 50,000
June 25, 2020 50,000 Route 77 Corner Store 2 – Waterville
June 29, 2020 50,000 Seaman 66 – Topeka
Rands – Hillsdale

FasTrax – Tonganoxie
Convenience Mart – Wichita

Mega Millions Winners - $10,000 or More

Date of Claim Amount Where Ticket Was Sold
Quick Stop West – Atchison
July 15, 2019 $ 10,000 Dillons 67 – Topeka
July 24, 2019 10,000 Dillons 84 – Newton
September 3, 2019 10,000
September 5, 2019 10,000 Murphy Express 8794 – Atchison
October 31, 2019 10,000 D & T Station – Wichita
December 20, 2019 10,000 QuikTrip 343 – Wichita
March 13, 2020 10,000 Hen House 24, Leawood
April 28, 2020 30,000 Handy’s 4 – Junction City
April 28, 2020 10,000 Handy’s 4 – Junction City
June 3, 2020 10,000
June 13, 2020 10,000 Larry’s Shortstop – Topeka
Star Mart – Emporia

Lotto America Winners - $5,000 or More

Date of Claim Amount Where Ticket Was Sold
Crossroads Express – Oberlin
September 6, 2019 $ 20,000

Kansas Lottery FY 2020 Annual Report | 5

Lucky for Life - $5,000 or More

Date of Claim Amount Where Ticket Was Sold
Doman’s General Store – Vassar
September 25, 2019 $ 5,000 Queen’s Price Chopper 6 – Overland Park
October 21, 2019 5,000
November 25, 2019 5,000 Kraus Foods – Colwich
December 3, 2019 5,000 Food Mart 3 – Garden City
December 20, 2019 5,000
December 24, 2019 5,000 Dillons 84 – Newton
February 4, 2020 5,000 Casey’s General Store 3063 – Harper
February 5, 2020 5,000 Casey’s General Store 2953 – Derby
March 2, 2020 5,000 Hy-Vee Food Drugtown 1422 – Mission
March 11, 2020 5,000
March 17, 2020 5,000 Quiktrip 160 – Merriam
March 17, 2020 5,000 Jacksonville C-Store – Edwardsville
May 6, 2020 5,000
May 8, 2020 5,000 Dillons 98 – Lawrence
May 15, 2020 5,000 Woods Mini Mart 5 – Lawrence
May 27, 2020 5,000 Casey’s General Store 3320 – Minneapolis
June 17, 2020 5,000
June 19, 2020 5,000 Kwik Shop 705 – Topeka
June 26, 2020 5,000 Casey’s General Store 1720 – Burlington

Cerv’s 1 – Hays
Tripco Enterprises, Inc. – Severy
Four Seasons RV Acres – Abilene

Mikie’s – Independence

Super Kansas Cash - $100,000 or More

Date of Claim Amount Where Ticket Was Sold

August 30, 2019 $ 1,088,070 Casey’s General Store 3233 – Lenexa
November 4, 2020 407,126 Walmart 3283 – Wichita
November 26, 2019 210,000 Ampride – Great Bend
February 12, 2020 528,413 Kwik Shop 752 – Baldwin City
May 11, 2020 260,000 Kwik Shop 730 – Newton
June 10, 2020 100,000 Casey’s General Store 3413 – Holton
June 16, 2020 270,000 Casey’s General Store 3059 – Wellington
June 25, 2020 230,000 Ottawa Kicks – Ottawa

Keno - $5,000 or More

Date of Claim Amount Where Ticket Was Sold
7,033 Dudley’s Sports Bar – Wichita
July 8, 2019 $ 5,731 Carm ‘N’ Dales – Chetopa
August 8, 2019 6,250 American Legion 4 – Wichita
August 8, 2019 17,884 1 Stop – Wichita
September 6, 2019 5,416 Speakeasy – Salina
October 31, 2019 19,179 Dudley’s Sports Bar – Wichita
January 6, 2020 6,250
January 28, 2020 6,250 Alta Convenience 6204 – Quinter
February 18, 2020 14,254 Venture Foods – Coldwater
February 28, 2020 5,113 D’s Mini Mart IV – Prescott
March 16, 2020 8,549 Shop Quik 8 – Junction City
April 27, 2020 7,464
April 28, 2020 5,465 Country Mart 2621 – Emporia
June 15, 2020 Hutch’s C-Store 117 – Liberal

Kansas Lottery Yur Place – Hardtner

FY 2020 Annual Report | 6

Racetrax - $5,000 or More

Date of Claim Amount Where Ticket Was Sold
Casey’s Bar & Grill – Wichita
September 24, 2019 $ 6,673.00
November 19, 2020 9,858.00 Northland BP Amoco, Inc. – Topeka
March 3, 2020 7,816.80 The Blind Pig – Salina
March 6, 2020 5,414.40
June 19, 2020 6,800.00 Northland BP Amoco, Inc. – Topeka
The Blind Pig – Salina

2by2 - $22,000 or More

Date of Claim Amount Where Ticket Was Sold
22,000 Dillons 87 – Topeka
July 24, 2019 $ 22,000
September 13, 2019 22,000 Hen House 27 – Kansas City
September 18, 2019 22,000 Dillons 87 – Topeka
October 7, 2019 22,000
October 23, 2019 22,000 Smoke Plus – Wichita
October 28, 2019 22,000 Dillons 38 – Arkansas City
November 8, 2019 22,000 Handy’s 4 – Junction City
January 2, 2020 22,000 QuikTrip 269 – Overland Park
February 14, 2020 22,000
February 21, 2020 22,000 QuikTrip 316 – Wichita
March 6, 2020 22,000 QuikTrip 366R – Wichita
April 6, 2020 22,000 Circle K Store 2721627 – Olathe
April 7, 2020 22,000 Hen House 27 – Kansas City
April 20, 2020 22,000 U Pump It 217 – Garden City
May 8, 2020 22,000 White’s Foodliner 1 – Kingman
May 11, 2020 22,000 Hy-Vee Gas 1532 – Prairie Village
May 18, 2020 44,000 Casey’s General Store 2950 – Coffeyville
June 5, 2020 22,000 QuikTrip 389R – Wichita
June 15, 2020 22,000 4th & Whiteside Station – Hutchinson
June 25, 2020 22,000
June 26, 2020 QuickGas – Wichita
DK Liquor – Ulysses

I70 66 – Topeka
Kwik Star – Salina

Holiday Millionaire Raffle - $25,000 or More

Date of Claim Amount Where Ticket Was Sold

September 9, 2019 $ 100,000 QuikTrip 366R – Wichita
October 4, 2019 25,000 Love’s Country Stores 732 – Abilene
November 6, 2019 30,000 Mikie’s – Independence
December 2, 2019 40,000 Crown Lanes – Leavenworth
December 17, 2019 50,000 Goose Express – Topeka
January 2, 2020 50,000 Petro Deli 1, Inc. – Topeka
January 3, 2020 50,000 Hy-Vee Gas 1398 – Manhattan
January 3, 2020 25,000 Ottawa Mini Mart – Ottawa
January 6, 2020 25,000 Kwik Shop781 – Topeka
January 6, 2020 25,000 Hy-Vee Gas 315 – Lenexa
January 8, 2020 100,000 QuikTrip 315 – Wichita
January 8, 2020 25,000 USA Express – Russell
January 9, 2020 1,000,000 Hy-Vee Gas 1658 – Topeka
January 9, 2020 25,000 Red Raider Express – Wamego
January 30, 2020 50,000 Kwik Shop 741 – Larned

Kansas Lottery FY 2020 Annual Report | 7

Instant Tickets - $100,000 or More

Date of Claim Game Amount Where Ticket Was Sold
July 15, 2019 200X the Cash $ 100,000 One Stop N Shop – Kansas City
August 5, 2019 $100,000 Crossword Hen House 34 – Overland Park
August 30, 2019 Extreme Crossword 100,000
September 6, 2019 100,000 Hy-Vee Gas 5383 – Lenexa
September 16, 2019 Money 250,000 Dillons 85 – Andover
October 8, 2019 Money 250,000
October 28, 2019 Extreme Crossword 150,000 St. John Short Stop – Saint John
December 11, 2019 200X the Cash 100,000 Short Stop 18 – Council Grove
December 11, 2019 $100,000 Crossword 100,000 Casey’s General Store 1396 – Neodesha
December 24, 2019 Ultimate Riches 100,000 Murphy Express 8770 – Goddard
December 24, 2019 Extreme Crossword 150,000
December 30, 2019 $100,000 Crossword 100,000 Toot N Totum 120 – Liberal
February 4, 2020 Ultimate Riches 100,000 Minute Mart 1 – Olathe
February 14, 2020 200X the Cash 100,000
April 20, 2020 Wolf Run 100,000 U Pump It 217 – Garden City
April 20, 2020 Money 250,000 Walmart 0978 – Arkansas City
May 20, 2020 Wolf Run 100,000
May 22, 2020 Diamond 7s 107,777 Shell Food Mart – Shawnee
June 3, 2020 $100,000 Crossword 100,000 Dillons 85 – Andover
June 24, 2020 Multiplier Super Ticket 250,000
June 26, 2020 200X the Cash 100,000 Hen House 24 – Leawood
Ultimate Riches 100,000 Quick Pick 6 – McPherson
Quick Pick 1 – Dodge City

EZ Trip – Newton
Southside Convenience – Hays
Casey’s General Store 2953 – Derby
Casey’s General Store 2951 – Colby

Kansas Lottery FY 2020 Annual Report | 8

Traditional Lottery— Prizes Paid, 60.6%
Where Does the Money Go? Transfers to the State, 24.5%

Since the Kansas Lottery’s start up in November 1987, through
June 30, 2020, lottery ticket sales have produced nearly $1.9
billion in revenues transferred to the State of Kansas. In that
same time period, nearly $3.6 billion worth of prizes have
been paid to players, and retailers have earned more than $370
million in commissions. The Lottery’s Fiscal Year 2020, which
ended June 30, 2020, produced nearly $275 million in sales and
more than $69.1 million transferred to the state.

The Kansas Lottery Act requires a minimum of 45 percent of
total sales be paid back to the players through the prize fund.
In fiscal year 2020, the Kansas Lottery paid out 60.6 percent in
prizes. Transfers to state programs were 24.5 percent of ticket
sales; cost of sales was 3.9 percent, which covers online vendor
fees, telecommunications costs, and instant ticket printing;
5.9 percent was paid to Lottery retailers for commissions and
bonuses; and 5.1 percent covered administrative expenses,
including salaries, advertising, depreciation, professional
services, and other expenses.

How Are Lottery Proceeds Distributed? Cost of Sales, 3.9%
The State Gaming Revenues Fund (SGRF) is funded through Administrative Costs, 5.1%
monthly transfers from the Kansas Lottery. Transfers are
then made from the SGRF to funds dedicated to economic Retailer Earnings, 5.9%
development initiatives, prison construction and maintenance
projects, local juvenile detention facilities, problem gambling
assistance, and the State General Fund.

The first $50 million is divided by a formula that first transfers $80,000 to the Problem
Gambling and Addictions Grant Fund. Then 85 percent of the balance is transferred to the
Economic Development Initiatives Fund, 10 percent to the Correctional Institutions Building
Fund, and 5
percent to the
Juvenile Detention Gaming Revenues Fund FY 2020
Facilities Fund.
Any receipts in Economic Development Initiatives Fund $ 42,432,000
Juvenile Detention Facilities Fund 2,496,000

excess of $50 Correctional Institutions Building Fund 4,992,000
Problem Gambling and Addictions Grant Fund 80,000
million must be Veterans Programs 1,260,000
transferred to
the State General Mental Health Programs 1,716,218
Fund. State General Fund 16,151,571

Kansas Lottery FY 2020 Annual Report | 9

Economic Development Initiatives Fund (EDIF)

The primary recipients of moneys from the EDIF in FY 2019 and FY 2020 were the Kansas Department
of Commerce, the Kansas Department of Wildlife, Parks and Tourism, the Board of Regents, and the State
General Fund.

Department of Commerce FY 2019 FY 2020

Operating Grant $ 6,965,713 $ 9,062,270
Global Trade Services 150,000 221,899
Older Kansans Employment Program 467,787 571,720
Rural Opportunity Zones Program 1,025,414 974,730
Senior Community Service Employment Program 8,865 11,074

Strong Military Bases Program 194,955 468,166
Governor’s Council of Economic Advisors 3,370 190,609
Kansas Creative Arts Industries Commission 113,373 576,592
Registered Apprenticeship 740,000 0
Public Broadcasting Grants 500,000 500,000
Build Up Kansas 0 125,000
Main Street Program 0 158,705
Subtotal – Department of Commerce $ 10,169,477 $ 12,860,765

Board of Regents and Universities $ 2,547,726 $ 2,547,726
185,250 201,328
Vocational Education Capital Outlay 993,265 993,265
Technology Innovation and Internship 500,000 500,000
EPsCoR 295,046 307,939
Community College Competitive Grants
Kansas State University – ESARP $ 4,521,287 $ 4,550,258
Subtotal – Board of Regents and Universities

Department of Agriculture $ 1,020,407 $ 771,549

Agricultural Marketing Program $ 1,753,035 $ 1,759,301
0 9,670
Department of Wildlife, Parks and Tourism
1,685,800 1,702,313
Operating Expenditures 54,264 25,816
KC District Office Debt Service 39,827 52,569
Travel Tourism
National Guard Licenses and Permits 1,536,554 1,579,150
Disabled Veteran’s Licenses $ 5,069,480 $ 5,128,818
Parks Operations
Subtotal – Department of Wildlife, Parks and Tourism

TOTAL EXPENDITURES $ 20,780,651 $ 23,311,390

Transfers to Other Funds $ 2,000,000 $ 2,000,000
500,000 500,000
State Housing Trust Fund
State Water Plan Fund 18,575,000 17,589,963
State General Fund $ 21,075,000 $ 20,089,963
Subtotal – Transfers

TOTAL TRANSFERS AND EXPENDITURES $ 41,855,651 $ 43,401,353

EDIF Resource Estimate FY 2019 FY 2020

Beginning Balance $ 5,177,927 $ 3,533,519
Gaming Revenues 42,432,000 42,432,000
Other Income*
223,280 291,520
Total Available $ 47,833,207 $ 46,257,039
Less: Expenditures and Transfers 41,855,651 43,401,353

Reappropriations (2,444,037) (2,371,999)
ENDING BALANCE
$ 3,533,519 $ 483,687

*Other income includes interest, transfers, reimbursements, and released encumbrances.
Source: Information provided by the Kansas Legislative Research Department.

Kansas Lottery FY 2020 Annual Report | 10

Kansas Lottery Veterans Benefit Tickets
Legislation passed by the 2003 Legislature
authorizes net profits from Veterans Benefit
Games to go directly to designated veterans’
programs. Every penny of the money is used
here in Kansas and goes to provide basic things
for our Kansas military veterans. All net profits
received from the sale of Kansas Lottery
Veterans Benefit Games are deposited into the
state treasury and are then directed to three
special funds:
• National Guard Educational Assistance
Act Scholarships
• Veterans Home Fee Fund to be used for
the Kansas veterans’ homes and the state
veterans’ cemetery system
• Veterans Enhanced Service Delivery
Program

Transfers to these and other programs as
designated by the Kansas Legislature totaled $19,960,816 from FY 2004 through FY 2020.
Transfers in FY 2020 totaled $1,260,000.

Beginning in FY 2019, a fixed amount is transferred from Lottery to the Veterans Benefit Lottery
Game Fund (VBLGF) once a year on July 15. The transfer is made at the same time as the
Lottery makes its monthly transfer to the SGRF. If calculated net profits from the designated
games at the end of the fiscal year are more than the initial transfer, the additional net profits are
transferred to the VBGLF.

Lottery Ticket Vending Machines
Legislation passed in 2018 authorized lottery ticket
vending machines in Kansas. Lottery ticket vending
machine sales began in FY 2020.

Beginning in FY 2020, up to $8.0 million from the
annual sale of lottery tickets through the vending
machines is transferred to the following funds within the
Kansas Department for Aging and Disability Services:

• 75 percent to the Community Crisis Stabilization
Centers Fund

• 25 percent to the Clubhouse Model Program Fund

Transfers to these and other programs as designated Stephen Durrell, Executive Director, standing

by the Kansas Legislature totaled $1,716,218.00 in FY with John Benson, owner of John’s Food Cen-
2020. Of this amount, $1,287,163.50 was transferred to ter in Topeka, Kan., in June 2019. This was the
first pilot site for lottery ticket vending machines

the Community Crisis Stabilization Centers Fund and in Kansas.

$429,054.50 was transferred to the Clubhouse Model Program Fund.

Kansas Lottery FY 2020 Annual Report | 11

FY 2020 Activities Related to the Kansas Expanded Lottery Act
— Casino Gaming

The Kansas Expanded Lottery Act (KELA) was enacted in 2007. KELA authorized the Kansas
Lottery to own and operate casino gaming in four “gaming zones.” Through a competitive
bidding process, the Kansas Lottery now holds contracts with companies that manage the
State’s casino games in all four gaming zones. All four casinos are now open to the public and
generating revenue for the State, local governments, the Problem Gambling and Addictions
Grant Fund, and casino managers.
Of the $334.1 million in total casino revenues in FY 2020 from the State’s gaming operations
at the four casinos generated, $73.6 million was transferred to the State of Kansas, about $10.0
million went to local units of governments, almost $6.7 million was transferred to the Problem
Gambling and Addictions Grant Fund, and more than $243.7 million was for casino operator
management fees.

COVID-19 Impact
When COVID-19 began spreading more rapidly across the United States, operations were
suspended at the four State-owned casinos beginning March 17, 2020. State casinos were
allowed to resume operations on May 22, 2020, following Governor Laura Kelly’s May 20
executive order to move the state into a revised Phase 2 of the “Ad Astra: A Plan to Reopen
Kansas.” Because State-owned casino operations were suspended for two months of FY 2020,
expanded gaming revenues decreased by nearly $77.0 million, or 18.7 percent, below FY 2019
revenues. Hollywood Casino in Kansas City, Kansas, saw the largest decrease in revenues, while
Kansas Crossing Casino in Mulvane saw the smallest decrease in revenues.

Expanded Lottery (Casino) Revenue - Where Does the Money Go?
The 2007 Kansas Expanded Lottery Act created the Expanded Lottery Act Revenues Fund
(ELARF). The State’s share of revenue from state-owned and -operated casino gaming is
transferred from the ELARF for purposes of reduction of state debt, state infrastructure
improvements and reduction of local ad valorem tax; and/or for other purposes as directed
by the Kansas Legislature, such as Kan-Grow Engineering Funds at state universities and the
reduction of unfunded actuarial liability of the Kansas Public Employees Retirement System
(KPERS).

Other Expanded Gaming
With the opening of Kansas Crossing Casino, no additional casinos with state-owned and
-operated games can be opened in Kansas without a change in current law. KELA does,
however, also authorize the placement of state-owned and -operated slot machines at
designated pari-mutuel racetrack facilities within the state. At the end of FY 2020, there were
no pari-mutuel tracks remaining in operation in Kansas.

Kansas Lottery FY 2020 Annual Report | 12

Boot Hill Casino
Located in Dodge City in the Southwest Gaming
Zone, Boot Hill Casino & Resort opened its
doors to the public on December 15, 2009. The
Old West themed casino currently offers 647 slot
machines and 21 table games. Amenities include
a bar, restaurant and snack bar. The Hampton Inn
& Suites operates its 108-room facility adjacent to
the casino. On the other side of the casino lies
the United Wireless Arena and Conference Center,
which is owned by Dodge City and Ford County.

FY 2020

Total gaming revenue at Boot Hill Casino in
FY 2020 was nearly $33.0 million. The State of
Kansas’ 22 percent share in FY 2020 amounted
to approximately $7.3 million. Following is a more
detailed breakdown of the distribution of gaming
revenue at Boot Hill Casino & Resort in FY 2020,
including amounts paid to Dodge City, Ford
County, the Expanded Lottery Act Revenues Fund Boot Hill Casino opened in Dodge City in
(ELARF), and the Problem Gambling and Addictions December 2009.

Grant Fund.

Here is the distribution of revenue at Boot Hill Casino & Resort in Dodge City in FY 2020
and a comparison to FY 2019 distributions—Adjusted Net Revenue as of June 30, 2020:
$32,971,510

Distribution FY 2020 FY 2019 Percentage
ELARF (22%) Amount Received Amount Received Change
Problem Gambling and Addictions $ 7,253,732 $ 9,149,779 (20.7) %
Grant Fund (2%) (20.7) %
Local Governments* (3%) 659,430 831,798 (20.7) %
Casino Manager (73%) 989,145 1,247,698 (20.7) %
24,069,203 30,360,631

*1.5% to Dodge City and 1.5% to Ford County

Kansas Lottery FY 2020 Annual Report | 13

Kansas Star Casino
The second casino with state-owned and -operated
gaming opened its interim facility on December
26, 2011. Originally managed by Peninsula Gaming
Partners, LLC, the Kansas Star Casino is located in
Mulvane, Kansas, right off the Kansas Turnpike
just 14 miles south of Wichita. In late 2012 Boyd
Gaming acquired Peninsula Gaming Partners, LLC.
The acquisition involved not only the Kansas Star
Casino, but also included four other casinos owned
or operated by Peninsula Gaming, bringing the total
number of Boyd Gaming casinos to 22.

The casino’s construction was completed ahead Kansas Star Casino opened in Mulvane in
of schedule in December 2012, at which time December 2011.
work began on converting the temporary casino
into the Kansas Star Arena. That conversion was
completed in the second quarter of FY 2014. The
total number of slot machines on the gaming floor
currently stands at approximately 1,740, along
with 60 table games. Additional amenities include
a 300-room hotel, several restaurants, a retail and
gift shop, a convention and conference center, equine
(horse) facilities and the multi-use Kansas Star Arena.

FY 2020
Through the end of FY 2020, Kansas Star Casino realized gaming revenues of more than
$150.3 million. As a result, the Expanded Lottery Act Revenues Fund (ELARF) received more
than $33.2 million (22 percent of the total). The following table details payments made to all
recipients in FY 2020.

Here is the distribution of revenue at Kansas Star Casino in Mulvane in FY 2020 and
a comparison to FY 2019 distributions—Adjusted Net Revenue as of June 30, 2020:
$150,355,262

Distribution FY 2020 FY 2019 Percentage
ELARF (22%) Amount Received Amount Received Change
Problem Gambling and Addictions $ 33,206,835 $ 40,554,718 (18.1) %
Grant Fund (2%) (18.1) %
Local Governments* (3%) 3,007,105 3,683,156 (18.1) %
Casino Manager (73%) 4,510,658 5,524,735 (18.1) %
109,630,664 134,395,226

*1.0% to the City of Mulvane, 1.0% to Sumner County, and 1.0% to Sedgwick County

Kansas Lottery FY 2020 Annual Report | 14

Hollywood Casino at Kansas Speedway
Located in Kansas City, Kansas, the Hollywood
Casino at Kansas Speedway is managed by Kansas
Entertainment, LLC, which is a partnership
between Penn Gaming and the International
Speed Corporation (“ISC”). Penn Gaming owns
and operates over 20 casinos within the United
States (including the Argosy Casino in Kansas City,
Missouri, which is across the river from Hollywood
Casino), while ISC is the owner of a number of
automobile racetracks in the U.S., including Kansas
Speedway.

Hollywood Casino first offered state-owned and
-operated games to the public on February 3, 2012.
Housed in its permanent casino facility on Turn
2 of the Kansas Speedway racetrack, Hollywood
Casino’s décor reflects the glitz and glamour of
old and new Hollywood, paying homage to the
popular sport of automobile racing. Along with
2,000 slot machines and 53 table games, Hollywood
Casino offers covered parking, several restaurants Hollywood Casino at Kansas Speedway opened
(including both fine dining and buffet options), in Kansas City, Kans., in February 2012.

a sports bar, and retail. Located near the popular
Legends Shopping Center at the intersection of highways I-70 and I-435, players enjoy easy
access to and from the casino.

FY 2020
The Kansas City metropolitan area is home to five other casinos (four “riverboat” casinos and
one tribally-owned casino). Nonetheless, Hollywood Casino has steadily increased its market
share and in FY 2020 realized total gaming revenue of $122.1 million. Based on the State of
Kansas’ 22 percent share, that resulted in transfers to the Expanded Lottery Act Revenues Fund
(ELARF) totaling nearly $26.9 million.

Here is the distribution of revenue at Hollywood Casino at Kansas Speedway in Kansas City,
Kan., in FY 2020 and a comparison to FY 2019 distributions—Adjusted Net Revenue as of
June 30, 2020: $122,114,403

Distribution FY 2020 FY 2019 Percentage
ELARF (22%) Amount Received Amount Received Change
Problem Gambling and Addictions $ 26,865,169 $ 33,173,990 (19.0) %
Grant Fund (2%) (19.0) %
Local Governments* (3%) 2,442,288 3,015,818
Casino Manager (73%)
3,663,432 4,523,726 (19.0) %
89,143,514 110,077,331 (19.0) %

Kansas Lottery FY 2020 Annual Report | 15

Kansas Crossing Casino
The fourth (and the last one authorized by
KELA) casino to be approved is located in
Pittsburg, Kansas (Crawford County). Kansas
Crossing Casino opened to the public on March
29, 2017. The mining-themed casino presently
houses approximately 627 slot machines and 16
table games. Other facilities include a full-service
restaurant, bar and concert/entertainment venue.
Adjacent to the casino is a 123-room Hampton Inn
and Suites.

FY 2020

FY 2018 was the first full fiscal year of operation
for Kansas Crossing, in which the casino realized
gaming revenues of about $32.5 million in FY
2020. Based on the State of Kansas’ 22 percent
share, that resulted in transfers to the Expanded
Lottery Act Revenues Fund (ELARF) totaling
nearly $6.3 million.
Kansas Crossing Casino opened in Pittsburg in
Here is the distribution of revenue at Kansas March 2017.

Crossing Casino in Pittsburg, Kans., in FY 2020 and a comparison to FY 2019 distributions—
Adjusted Net Revenue as of June 30, 2020: $28.6 million

Distribution FY 2020 FY 2019 Percentage
ELARF (22%) Amount Received Amount Received Change
Problem Gambling and Addictions $ 6,296,565 $ 7,587,627 (17.0) %
Grant Fund (2%) (17.0) %
Local Governments* (3%) 572,415 689,784 (17.0) %
Casino Manager (73%) 858,623 1,034,676 (17.0) %
20,893,149 25,177,126

*1% to City of Pittsburg, 1% to Cherokee County, and 1% to Crawford County

Kansas Lottery FY 2020 Annual Report | 16

KANSAS LOTTERY
(A COMPONENT UNIT OF THE STATE OF KANSAS)

STATEMENT OF NET POSITION
JUNE 30, 2020 AND 2019

2020 2019

ASSETS

Current Assets: $ 8,382,613 $ 9,470,848
Cash: 260,135 300,229
Operating fund
Prize payment fund 3,272,715 2,598,607
Accounts receivable, net of allowance for 5,743,662 4,815,955
doubtful accounts of $320,840 and $306,240 2,031,165 5,970,992
at 2020 and 2019, respectively 2,768,408 1,922,742
Accounts receivable - unbilled
Other receivable
Instant ticket game inventory

Total current assets 22,458,698 25,079,373

Capital assets, net of depreciation 3,682,660 4,551,910

Total assets 26,141,358 29,631,283

DEFERRED OUTFLOWS OF RESOURCES

KPERS Pension 1,184,179 1,230,552
KPERS OPEB 13,856 -

Total deferred outflows 1,198,035 1,230,552

LIABILITIES

Current liabilities: 9,285,276 13,633,759
Accounts payable and accrued liabilities 2,447,383 4,528,779
Due to the State of Kansas 10,101,088 8,731,881
Prize liability

Total current liabilities 21,833,747 26,894,419

Net pension liability 6,050,936 6,076,235
OPEB liability 114,481 74,490

Total liabilities 27,999,164 33,045,144

DEFERRED INFLOWS OF RESOURCES

KPERS Pension 285,435 489,784
KPERS OPEB 18,687 21,122

Total deferred inflows 304,122 510,906

NET POSITION

Net Invested in capital assets 3,682,660 4,551,910
Unrestricted (deficit) (4,646,553) (7,246,125)

Total net position $ (963,893) $ (2,694,215)

Kansas Lottery See accompanying notes to financial statements.

FY 2020 Annual Report | 17

KANSAS LOTTERY
(A COMPONENT UNIT OF THE STATE OF KANSAS)
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

YEARS ENDED JUNE 30, 2020 AND 2019

2020 2019

Operating revenues: $ 274,992,121 $ 295,282,190
Net game revenues - Traditional Lottery 334,061,927 411,027,819
Net game revenues - Expanded Lottery 931,390 865,730
Cost reimbursements - Traditional Lottery 3,522,941 3,885,772
Cost reimbursements - Expanded Lottery 164,205 39,881
Retailer fees and miscellaneous income

Total operating revenues 613,672,584 711,101,392

Operating expenses: 166,527,213 172,676,708
Game prizes 243,736,530 300,010,314
Casino operator management fee
Retailer commissions 16,242,063 17,327,773
Central gaming and loyalty systems 9,445,075 10,777,239
Salaries and benefits 6,432,407
Cost of instant tickets 2,993,919 6,268,918
Advertising 5,013,058 3,334,174
Other administrative expenses 2,332,662 4,834,899
Depreciation 978,183 2,355,862
Professional services 549,008
Telecommunications 248,280 164,911
389,796
259,318

Total operating expenses 454,498,398 518,399,912

Operating income 159,174,186 192,701,480

Nonoperating revenues (expenses): (63,768,311) (74,109,899)
Transfers to the State Gaming (1,260,000) (1,200,000)
Revenue Fund (2,018,082) -
Transfers to Veterans Programs (83,667) -
Transfers to Mental Health Programs
Transfers to Governor's Office (73,622,301) (90,466,114)
Transfers to the Expanded Lottery (6,681,238) (8,220,556)
Act Revenues Fund
Transfers to the Problem Gambling Fund (10,021,858) (12,330,835)
Distributions to City and County governments 11,593 970
Write-off and adjustment of capital assets

Total nonoperating revenues (expenses) (157,443,864) (186,326,434)

Change in net position 1,730,322 6,375,046

Net position, beginning of year (2,694,215) (9,069,261)

Net position, end of year $ (963,893) $ (2,694,215)

Kansas Lottery See accompanying notes to financial statements.

FY 2020 Annual Report | 18

KANSAS LOTTERY
(A COMPONENT UNIT OF THE STATE OF KANSAS)

STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2020 AND 2019

2020 2019

Cash flows from operating activities: $ 616,010,596 $ 708,493,821
Cash received from sales and reimbursements - -
Cash (paid)/received for casino privilege fee deposits
Cash paid for prizes, commissions, and other expenses (446,814,814) (511,497,355)
Cash paid to employees (6,591,982) (6,467,078)

Net cash provided by operating activities 162,603,800 190,529,388

Cash flows from noncapital financing activities: (66,151,571) (73,709,328)
Payments to State Gaming Revenue Fund (1,260,000) (1,200,000)
Payments to Veterans Programs (1,716,218) -
Payments to Mental Health Programs (83,667) -
Payments to Governor's Office
Payments to State General Fund (73,622,301) (90,466,114)
Payments to State Problem Gambling Fund (6,681,238) (8,220,556)
Payments to City and County Governments
(10,021,858) (12,330,835)

Net cash used by noncapital financing activities (159,536,853) (185,926,833)

Cash flows from capital and related financing activities: 18,000 13,840
Proceeds from sale of capital assets (4,213,276) (87,991)
Purchases of capital assets
(4,195,276) (74,151)
Net cash used by capital and related financing (1,128,329) 4,528,404
activities 9,771,077 5,242,673
$ 8,642,748 $ 9,771,077
Net increase (decrease) in cash

Cash, beginning of year

Cash, end of year

Reconciliation of operating income to net cash $ 159,174,186 $ 192,701,480
provided by operating activities:
Operating income 978,183 164,911
Adjustments to reconcile operating income to net cash
provided by operating activities: (174,267) 185,221
Depreciation - -
Net recognition of deferred amounts of
pension and OPEB liabilities (1,601,815) (1,082,108)
KPERS contribution on behalf of Lottery 3,939,827 (1,525,463)
Changes in operating assets and liabilities:
Accounts receivable (845,666) 610,681
Other deposits and receivables (250,547) 1,347,809
Instant ticket game inventory (383,381)
Accounts payable and accrued liabilities 14,692
Net pension liability - -
Unearned revenues - -
Refundable deposits
OPEB liability 1,369,207 (1,489,762)
Prize liability
$ 162,603,800 $ 190,529,388
Net cash provided by operating activities

Noncash capital and related financing activities: $ - $ 4,097,936

Capital assets received in year ending June 30,
2019, for which cash was paid during the following
fiscal year

See accompanying notes to financial statements.

Kansas Lottery FY 2020 Annual Report | 19

Kansas Lottery Administrative Staff
Stephen Durrell — Executive Director
Keith Kocher — Director of Program Assurance and Integrity, Legislative Liaison
Gail Kennedy — Chief of Staff, Director of Administration and Business Operations
Craig Paschang — Assistant Attorney General
Matt Schwartz — Director of Finance
Stephen Ortiz — Director of Sales and Marketing
Cory Thone — Social Media Director
Jessica Herrera — Public Information Officer
Ron Gish — Director of Security and Law Enforcement Division
Steve Gutierrez — Chief Information Security Officer
Darren Dreier — Director of Information Technology
Ty Overstreet — Executive Secretary
FY 2020 Kansas Lottery Commission
Catherine Moyer, Ulysses — Chairperson
Jim Washington, Basehor
Kala Spigarelli, Pittsburg
Ed Trimmer, Winfield

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Kansas Lottery FY 2020 Annual Report | 20
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