Lottery transfers to the Educational Enhancement Trust Fund declined by $41 million in Fiscal Year 2009-10, due to a variety of economic and demographic factors, and are projected to further decline by $106 million in 2010-11. During 2010, the Lottery took several steps to maintain and stimulate sales including launching a new game and expanding its use of instant ticket vending machines.
To increase transfers to education, the Lottery should continue expanding its retailer network. In addition, it should evaluate the benefits of adding a fast keno game and continue to assess the option of joining another multi-state game. The Legislature could consider authorizing full-service vending machines, Internet sales, and video lottery terminals. However, these options represent expanded gambling, and video lottery terminals would violate the revenue sharing agreement of the gaming compact between the State of Florida and the Seminole Tribe of Florida.
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 its retailer compensation structure represents the best value for the state.

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.