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Page 1: Table of Contents - Georgia Lottery...Table of Contents Introduction 2 The GLC and Minority-Owned Retailers 3 GLC Expenditures with Minority-Owned Businesses 5 Employment 6 Introduction
Page 2: Table of Contents - Georgia Lottery...Table of Contents Introduction 2 The GLC and Minority-Owned Retailers 3 GLC Expenditures with Minority-Owned Businesses 5 Employment 6 Introduction

Table of Contents

Introduction 2 The GLC and Minority-Owned Retailers 3 GLC Expenditures with Minority-Owned Businesses 5 Employment 6 HBCU Partnership Program 7 Community Events 9 Conclusion 10

Page 3: Table of Contents - Georgia Lottery...Table of Contents Introduction 2 The GLC and Minority-Owned Retailers 3 GLC Expenditures with Minority-Owned Businesses 5 Employment 6 Introduction

Introduction

Since its inception in 1993, the Georgia Lottery Corporation (“GLC” or “Corporation”), as a responsible citizen of the corporate and government communities, has engaged in a concerted effort to ensure the fair involvement of minority business enterprises (“MBEs”) in its operations. By maintaining a systematic record of these practices, the GLC is able to monitor the success of these programs. Pursuant to Section 14 of the Georgia Lottery for Education Act (Official Code of Georgia §50-27-1, et seq., as amended) the GLC will “report the results of minority business participation to the Governor at least on an annual basis.” The GLC board of directors and employees are pleased to present this report documenting the scope of minority business participation in GLC operations for the period October 1, 2013 through September 30, 2014.

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Page 4: Table of Contents - Georgia Lottery...Table of Contents Introduction 2 The GLC and Minority-Owned Retailers 3 GLC Expenditures with Minority-Owned Businesses 5 Employment 6 Introduction

The GLC and Minority-Owned Retailers

The Georgia Lottery Corporation’s mission is to maximize revenues for the Lottery for Education Account through the sale of entertaining lottery tickets. Retailers throughout the State partner with the Corporation to promote and sell lottery products. The GLC’s Sales Division continually recruits new corporate and independent retail outlets to help achieve its mission of increasing profits for Georgia’s HOPE Scholarship and Pre-K Programs. The contributions of these outlets, or retailers, have been an important factor in the success of the GLC.

For the 2014 reporting period, the GLC benefited from contractual relationships with a total of 8,807 retailer accounts – an increase of 162 outlets over the 2013 reporting period. Of that total number, an estimated 3,345 retailers have identified themselves as minority-owned, or controlled by a member of an ethnic minority group. The minority-identified retail outlets increased by 5.29% in the past year. More than half of all retailers did not identify their ethnicity on their retailer application.

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Page 5: Table of Contents - Georgia Lottery...Table of Contents Introduction 2 The GLC and Minority-Owned Retailers 3 GLC Expenditures with Minority-Owned Businesses 5 Employment 6 Introduction

Approximately 93% of all minority retailers, or 3,119 retailers, identified themselves as members of the Asian-American population. Our records reflect that African-Americans compose the second largest ethnic group of minority retailers, with 163 outlets, or 4.9% of all identified minority retailers. Hispanic-American retailers represented less than two percent (1.2%) of minority retailers, and Native Americans were less than one percent (0.69%) of all minority retailers.

The GLC and Minority-Owned Retailers

GLC Retailer Network (October 1, 2013 through September 30, 2014)

Not Given 3,968

Non-Minority 1,494

Asian-American 3,119

African-American 163

Hispanic 40

Native-American 23

Percentages:

Background Not Given 45%

Minority 38%

Non-Minority 17%

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Page 6: Table of Contents - Georgia Lottery...Table of Contents Introduction 2 The GLC and Minority-Owned Retailers 3 GLC Expenditures with Minority-Owned Businesses 5 Employment 6 Introduction

The GLC and Minority-Owned BusinessesThe GLC’s purchasing or procurement process continues to provide a major opportunity for the involvement of minority businesses. Expenditures by the GLC with minority businesses can be divided into two (2) categories: a) direct procurement opportunities with the GLC; and b) subcontracts with the GLC’s major vendors. A total of $8,807,162.74 was spent with MBEs during this reporting period, a decrease of $306,586.10 over the previous year.

To conduct its corporate operations, the GLC regularly purchases products and services utilizing several MBEs as providers. During the 2014 reporting period, a total of $364,589.02 was spent by the GLC directly with minority-owned businesses in Georgia. This financial data does not include lease payments, subscriptions, utilities, taxes, investment banking services and payments to governmental entities.

The GLC works hard to ensure the effective communication of all vendor opportunities that exist for businesses to partner with the Georgia Lottery. By being an active member of the Georgia Minority Supplier Development Council (GMSDC); the GLC utilizes its strategic alliance with GMSDC to increase its visibility and promote communication with MBEs.

Partnering with the GLC’s major procurement vendors provides the majority of contracting opportunities for minority businesses. The GLC currently has three (3) major procurement contractors: BBDO Atlanta for advertising services; GTECH Corporation (“GTECH”) for on-line lottery gaming services; and Scientific Games Corporation (“Scientific Games”) for instant ticket printing and distribution services. Since 1993, over $201,665,453.46 in GLC funds have been paid to MBEs for products and services.

During the current reporting period, MBEs received a total of $8,442,573.72 of the total dollars spent with the three (3) major procurement contractors. GTECH was the largest major contractor of MBEs; its minority subcontractors were paid a total of $4,822,975.00 for services rendered. BBDO Atlanta advertising agency sent $1,919,248.13 to its minority subcontractors and minority-owned media. Scientific Games purchased a total of $1,700,350.59 in products and services from its minority subcontractors.

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Page 7: Table of Contents - Georgia Lottery...Table of Contents Introduction 2 The GLC and Minority-Owned Retailers 3 GLC Expenditures with Minority-Owned Businesses 5 Employment 6 Introduction

The GLC and EMPLOYMENTThe GLC generated over $4 billion in gross sales and $945 million in profits in Fiscal Year 2014, with an employee population of only 319 employees statewide. Within the Georgia Lottery’s employee base, 210 persons (66%) are members of ethnic minority groups, and 182 persons (57%) are women. In 1996, the GLC’s Board of Directors formally adopted the Corporation’s Equal Employment Opportunity Policy (“EEO Policy”). This policy incorporates fair standards for the hiring and promotion of employees at the GLC. During the reporting period of this document, 13 individuals comprised senior management. Of these 13 individuals, five were minorities and four were women.

Georgia Lottery EmployeesEthnic Diversity

Non-Minority109

Minority210

GLC Employee Ethnicity Breakdown

Black 199 (62.4%)

White 109 (34.2%)

Asian-American 7 (2.2%)

Hispanic 3 (0.9%)

Unspecified 1 (0.3%)

Total Population 319

GLC Employee Gender Breakdown

Total Females 182 (57.1%)

Total Males 137 (42.9%)

Total Population 319

Employment OpportunitiesThe Georgia Lottery Corporation, an equal opportunity employer, posts its employment opportunities on the Georgia Lottery website at www.galottery.com under the “About Us” section.

Contact: Toni Kidd, Human Resources Manager,404-215-5063, [email protected]

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Page 8: Table of Contents - Georgia Lottery...Table of Contents Introduction 2 The GLC and Minority-Owned Retailers 3 GLC Expenditures with Minority-Owned Businesses 5 Employment 6 Introduction

College Internship Program

HBCU PartnershipFront row (l-r): Daniesha Scott, Clark Atlanta University; Randi King, Albany State University; Brianne Phillips, Clark Atlanta University; Anthony Harris, Morehouse College; Tracye Hite, Fort Valley State University; Joshua Farmer, Fort Valley State University;

Second Row (l-r): Johnny Surry, Clark Atlanta University; Kimberly Ivey, Fort Valley State University; Kala Jenkins, Clark Atlanta University; Tatyana Suber, Clark Atlanta University;

Back row (l-r): Shelynda Metayer, Clark Atlanta University; TiAra DuBose, Clark Atlanta University; Ajamu Burke, Morehouse College; Shanise Douglas, Clark Atlanta University; Curtis Smith, Morehouse College; Alonda Miller, Fort Valley State University

For twenty years, the GLC -- in a partnership with GTECH and Georgia’s Historically Black Colleges and Universities (HBCUs) – has participated in a student internship program to introduce undergraduate students from Georgia’s HBCUs to the corporate workplace. Through this program, the GLC and GTECH receive enthusiastic and hard-working student interns to work in financial, administrative and technical roles. In exchange, the students receive valuable on-the-job training and a competitive salary. Since 1994, more than 276 students have participated in this program.

In 2014, sixteen student interns were employed at the GLC and GTECH. Placements held by students encompassed a wide range of areas. At the GLC, interns gained valuable real-life work experiences in Marketing and Promotions, Sales, Information Technology, Administration, and Finance. At GTECH, interns were placed in the Administration, Marketing and Field Services Departments, as well as in the Back-Up Data Center.

To enhance their experience and gain additional knowledge about the lottery industry, interns toured the Scientific Games’ printing facility and GTECH’s computer operations facilities. They also attended a live lottery drawing at WSB-TV and received lottery terminal operations training.

The success of the internship program is further reflected in the post-graduation decisions of the students. Although a formal tracking program does not exist, 48 former interns have become full- time employees of the Georgia Lottery Corporation and GTECH, and several have continued their studies in graduate school.

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College Internship Program

HBCU Partnership

Tracye Hite is a senior at Fort Valley State University, majoring in Computer Science. She is a part of the Association for Computing Machinery, the world’s largest scientific computing society. ACM is an organization that delivers resources about information technology. Being a part of the Operations department at GTECH has provided her with valuable experience with regard to technology and insight into the corporate world. Tracye has established great business relationships and looks forward to a future in the IT profession. She expresses her sincere gratitude for this rewarding experience.

Sheylynda Metayer attends Clark Atlanta University and is a Business Accounting major. She has joined several organizations at Clark-Atlanta including Campus Activity Board (C.A.B.), Hearing Every Ache and Responding Thoroughly (H.E.A.R.T.), National Association of Black Accountants (N.A.B.A.), and the Spanish Club. By interning in the Georgia Lottery’s Financial Accounting area within the Finance department, Shelynda was able to gain additional knowledge about financial reports and how to prepare, process, and report federal and state taxes. She also acquired a great deal of knowledge and experience in the corporate environment that will contribute to her success in all future endeavors. This experience is one she will take with her throughout life.

Curtis Smith is a rising senior at Morehouse College. Also, he is an English Major who plans to be a part of Teach for America program upon his graduation. At Morehouse, he is a member of National Society of Collegiate Scholars and an Oprah Winfrey Scholar recipient. I’m thankful to have been an intern of the GLC Project Management Team because this experience taught me the professional and organizational skills I need to thrive in my future teaching career.

College Internship Program – HBCU PartnershipFor the twenty years, the Georgia Lottery and GTECH Corporation have partnered with Georgia’s Historically Black Colleges and Universities for a paid student internship program to introduce undergraduate students from Georgia’s HBCUs to the corporate workplace. Application and interview process takes place each Spring.

Contact: Toni Kidd, Human Resources Manager,404-215-5063, [email protected]

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Contact: Chanda J. Brown at [email protected] or Lawrence Hunter at [email protected]

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Page 11: Table of Contents - Georgia Lottery...Table of Contents Introduction 2 The GLC and Minority-Owned Retailers 3 GLC Expenditures with Minority-Owned Businesses 5 Employment 6 Introduction

ConclusionThe Georgia Lottery Corporation continues to fulfill its statutory mission by generating revenues for selected educational programs in Georgia through the operation of an efficient, well-run enterprise. Since inception, the Georgia Lottery has raised more than $15.7 billion for specific educational programs in Georgia. These programs have benefited more than 1.7 million HOPE recipients and 1.3 million Pre-K students throughout the state of Georgia. The GLC’s partnerships with MBEs is an important factor in its success. The GLC continues to actively recruit minority-owned retailers to sell our products, and strongly supports and encourages the participation of minority business enterprises in its procurement process.

Debbie D. Alford, President & Chief Executive Officer

Board of DirectorsRayna Casey, Chairwoman

Simeon Deal, Vice-ChairmanJames BraswellRobert Hatcher

Teresa MacCartneyBenjamin Tarbutton

Al Trujillo

Georgia Lottery Corporation250 Williams Street, Suite 3000

Atlanta, GA 30303Telephone: 404-215-5000

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