Arizona State Lottery Commission

The report addresses the need for the Lottery to increase ticket sales and to improve management of its retail network. Arizona’s Lottery sales rank among the lowest in the nation on a per capita basis. Turnover of Lottery directors, failure to update on-line games, and poor use of the sales staff have contributed to the low sales. In addition, the Lottery could do a better job of managing its retail network, thus reducing its costs and increasing revenues. For instance, the Lottery should do more to collect amounts owed by retailers for tickets sold. It should also enforce its minimum sales requirements, and stop paying the costs of maintaining outlets that do not generate enough revenue to justify the expense. The report also addresses the need to improve the Lottery’s protection of cash on hand and other state assets, and to correct weaknesses in the security of its computer system.