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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.
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