Lottery transfers to the Educational Enhancement Trust Fund increased in Fiscal Year 2021-22 to $2.33 billion, $97 million (4%) more than the prior year. According to lottery officials, this increase is due to an increase in sales as well as an increase in transfers related to unclaimed prizes. The department continues to outperform the legislative performance standard for its operating expense rate, which is the third lowest in the nation.

Several games and product distribution options are available to further increase transfers to education. However, some options could represent expanded gambling. Lotteries throughout the country offer additional product distribution methods that the Florida Lottery does not currently use, including selling lottery tickets over the internet and through courier services. Offering lottery products over the internet would require statutory revisions, such as eliminating the requirement that an individual must purchase a minimum of $20 of other goods to use a credit card or other instruments issued by financial institutions and retailers to purchase lottery products. OPPAGA’s review of Florida statutes did not identify any law specifically authorizing or prohibiting courier services.

In the past year, the Lottery launched the sale of in-lane Powerball and Mega Millions draw games at 324 Southeastern Grocers stores. In addition, the department added a total of 464 scratch-off facings (i.e., ticket dispensers) at Publix Liquors stores, and 600 facings at Southeastern Grocers stores. The Lottery also commissioned research on expanding ticket sales to non-traditional retailers, including restaurants, bars, taverns, and gift shops. Thus far, the department is not aware of any non-traditional retailers surveyed during the research that have applied to become a retailer.

The Lottery has increased the number of security inspections and compliance operations it conducts during the last three fiscal years, in an effort to reduce theft and fraud. According to Lottery officials, during this period, the department identified 75 incidents of unauthorized activity, such as ticket alteration and theft of a ticket by a retailer or employee of a retailer. During the same period, the Lottery’s actions against retailers resulted in 33 terminations, 41 arrests, and 1 suspension.

The department also made efficiency improvements to reduce energy costs. Lottery officials reported implementing several energy cost-savings measures, including upgrading to LED lighting in the headquarters warehouse and parking lot and upgrading the vertical blinds to solar shades at headquarters and one regional office. For the past three years, the Lottery has been consistently more efficient than the state-established standard.

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.