In Fiscal Year 2005-06, the Lottery achieved record scratch-off ticket sales and transfers to the Educational Enhancement Trust Fund. This increase is attributable to the Legislature's authorization of variable prize payouts and transfer rates for scratch-off games. However, the Lottery continues to face the challenge of maintaining revenue growth as scratch-off sales are expected to level off, and competition continues from other forms of entertainment and gambling.
To address this challenge, the Lottery should continue to expand its retailer network to increase sales distribution and revenues and expand its multi-priced on-line games. The Lottery also could consider adding a super jackpot game or joining a multi-state game. The Legislature could consider expanding Lottery games by authorizing video lottery terminals and a keno on-line game. However, this would entail an expansion of legalized gambling in the state.
The Lottery's operating expense rate continues to decline, making it among the most efficient U.S. lotteries. It could realize additional efficiencies and increase transfers to education by ensuring that contract terms represent the best value for the state, and continuing to explore ways to reduce costs for leasing office space and providing field support functions. Enhancements to the department's performance management system could help the Lottery identify further operational efficiencies.

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.