Lottery transfers to the Educational Enhancement Trust Fund increased in Fiscal Year 2022-23 to $2.45 billion, $120 million (5%) more than the prior year. According to Department of the Lottery officials, this increase is due to the low operating expense rate while ticket sales have increased. The department continues to outperform the legislative performance standard for its operating expense rate, which is the third lowest in the nation.

In the past year, the Lottery made several efforts to increase revenue, including increasing the number of Lottery retailers and recruiting a new chain store partner; offering new games; adding self-checkout QUICKTICKET draw games at approximately 250 Winn-Dixie stores; providing enhancements and upgrades at Walmart Supercenters, Southeastern Grocers stores, and Winn-Dixie liquor stores; and enhancing player engagement. In addition, the Lottery is under contract with IGT Global Solutions Corporation, a private gaming company, to add 500 vending machines by summer 2024, which is anticipated to increase revenue and will place the number of vending machines at the maximum permitted in the state budget.

Several games and product distribution options are available to further increase transfers to education. Lotteries throughout the United States 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 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. The department is also under contract with IGT to launch a new mobile prize payment system in three phases by July 2024, which will add convenience for Lottery customers by allowing players to redeem winning tickets through the Lottery mobile app.

While the Lottery has taken steps to increase sales, additional actions could further enhance sales and ultimately increase transfers to education. For example, the Legislature could consider authorizing the Lottery to expand current games and product distribution methods to enhance revenues. In addition, the Legislature could consider authorizing or prohibiting the operation of lottery courier services.

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.