Montana Lottery Financial Statements (Unaudited) December 31, 1991

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The related prize expense and ticket cost are reclassified as an advertising expense. For the quarter ended December 31 1991, Instabuck redemptions resulted in a revenue reduction of $26,522 and a prize expense reclassification of $14,587.
Prizes . Expenses for instant prizes are recorded based on the predetermined prize structure for each game. No prize expense is recorded for free tickets distributed.
Expenses for on-line prizes are recorded based on the predetermined prize structure for the
...on-line game.
Commissions . Section 23-5-1016(10), MCA provides retailers a commission on instant and on-line tickets or chances sold.
The Lottery commission established this commission at 5% of the face value of instant tickets delivered to the retailers and on the amount of tickets sold for each on-line drawing.
i i I The commission on tickets sold to the retailers gives the ' retailer $15 per book of 300 tickets and 5 cents for each on- I line ticket sold. For the quarter ended December 31, 1991, commissions totaled $401,630.


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