Growth in Lottery transfers to the Educational Enhancement Trust Fund has leveled off and current forecasts indicate continued slowing of revenue growth due to the economic recession.
The Lottery has taken several steps to maximize its sales and transfers to education, including joining Powerball, adding instant ticket vending machines, and redesigning Lotto. While the Legislature could consider authorizing new games such as video lottery, keno, vending machines for on-line games, and Internet-based games, these options would likely increase associated negative social costs and could conflict with the proposed Indian gaming compact. A more acceptable alternative would be for the Lottery to increase the number of participating retailers, as its market penetration rate is lower than that of other successful state lotteries.
The Lottery's operating expense rate continues to decline, making it among the most efficient U.S. lotteries. It could realize additional efficiencies by continuing to explore ways to reduce costs for leasing office space, providing field support functions, and compensating retailers.

Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.