The Florida Legislature
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Office of Program Policy Analysis and Government Accountability

Lottery Profits Are Slowing with Economic Downturn; Advertising Services and Retailer Commission Rates Need to Be Addressed, Report No. 09-14, March 2009
 
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In Fiscal Year 2007-08, growth in Lottery transfers to the Educational Enhancement Trust Fund began to slow. Current forecasts indicate continued slowing of revenue growth and education transfers due to current economic conditions. To address this challenge, the Lottery launched Powerball, a multi-state jackpot game, and is continuing efforts to expand its retail network and multi-priced online games.

The Lottery’s operating expense rate is among the lowest in the nation but its administration costs continue to rise due largely to growth in commission payments. To address this issue, the Lottery has changed its scratch-off ticket vendor payment structure to reduce these costs but should further adjust commissions for higher-priced tickets and change its retailer payment structure. The Lottery has renegotiated the lease for its headquarters but continues to lease excess office space. The Lottery could realize additional efficiencies by evaluating its retailer recruitment process and the department should take steps to improve its marketing evaluation and competitively secure advertising services.

Which Government Program Summaries contain related information?

Department of Lottery

What other OPPAGA-related materials are available?

  • Report No. 17-01 Review of the Florida Lottery, 2016,published in January 2017.
  • Report No. 16-01 Lottery Sales Have Increased; Transfers to the Educational Enhancement Trust Fund Remain Stable,published in January 2016.
  • Report No. 15-03 Lottery Transfers Continue to Increase; Options Remain to Enhance Transfers and Improve Efficiency,published in January 2015.
  • Report No. 14-06 Lottery Transfers Have Recovered; Options Remain to Enhance Transfers,published in January 2014.
  • Report No. 13-02 Lottery Revenue Has Increased Over the Past Year; Options Remain to Enhance Transfers,published in January 2013.
  • Report No. 12-05 Recovery Expected in Lottery Revenue; Options Remain to Enhance Transfers,published in February 2012.
  • Report No. 11-12 Lottery Profits Decline; Options Available to Enhance Transfers to Education,published in March 2011.
  • Report No. 10-17 Lottery Jackpots, Retailer Density, and Advertising Drive Transfers to Education,published in January 2010.
  • Report No. 10-16 Lottery Profits Flat; Increasing Retailer Outlets Is Critical to Increasing Sales,published in January 2010.
  • Report No. 08-19 Lottery Profits Continue to Increase; Options Available to Enhance Transfers to Education,published in April 2008
  • Report No. 07-09 Lottery Scratch-Off Sales Increase; Options Available to Enhance Transfers to Education,published in February 2007
  • Report No. 06-04 Florida’s Lottery Responding to Revenue, Efficiency, and Minority Retailer Challenges,published in January 2006
  • Report No. 04-80 Lottery Faces Challenges Meeting Future Revenue Demands, Continues Work to Improve Efficiency,published in December 2004
  • Report No. 04-01 Progress Report: Florida Lottery Makes Progress by Implementing Many Justification Review Recommendations,published in January 2004
  • Report No. 03-56 Additional Steps Could Be Taken to Aid Pari-Mutuel Wagering Industry and/or Cut Regulatory Costs,published in October 2003
  • Report No. 02-11 Sale of Lottery Products Program, Department of the Lottery,published in February 2002
  • Report No. 12134 Performance Audit of the Selection of Instant Ticket Retailers Program Administered by the Department of the Lottery ,published in June 1993
  • Report No. 12133 Performance Audit of the Selection of On-Line Retailers Administered by the Department of the Lottery ,published in June 1993
  • Report No. 11933 Performance Audit of the Personnel Program Administered by the Department of Lottery ,published in August 1992

Copies of this report in print or alternate accessible format may be obtained by telephone (850/488-0021), by FAX (850/487-9213), in person, or by mail (OPPAGA Report Production, Claude Pepper Building, Room 312, 111 W. Madison St., Tallahassee, FL 32399-1475).
e-mail address: oppaga@oppaga.fl.gov


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