Although Lottery transfers to the Educational Enhancement Trust Fund declined by $55 million in Fiscal Year 2010-11, revenues are projected to recover during the current fiscal year. To maintain and stimulate sales during 2011, the Lottery continued its practice of launching new products and enhanced product distribution.
To increase transfers to education, the Lottery should continue expanding its retailer network and enhancing its product distribution. 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, which may facilitate recruitment of large corporate accounts. Other options are to authorize Internet sales and video lottery terminals. However, these options represent expanded gambling and could 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 meet legislative performance standards. To reduce operating costs, it recently subleased some of its excess headquarters space to another agency. For additional efficiencies, it could consider using alternative retailer payment terms in its future contracts to attract and retain quality retailers while maximizing revenues to 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.