Arizona State Lottery Commission and Arizona State Lottery

In 1980, Arizona citizens established the Arizona State Lottery Commission to oversee the Arizona State Lottery (Lottery) “. . . to produce the maximum amount of net revenue consonant with the dignity of the State.” The Lottery provides both instant ticket (scratcher) and drawing games for the public to play to generate revenue that is distributed to various Arizona program beneficiaries, including the State General Fund. However, since fiscal year 2007, its sales and beneficiary distributions have been leveling off or declining. The Lottery can increase its sales and distributions by: (1) expanding its retailer network, (2) increasing the number of players, and (3) better managing its prize expenses and advertising costs. In addition, although the Lottery has measures similar to other states for ensuring its games and players are protected from dishonest, unfair, and fraudulent practices, the Lottery should take additional action to monitor how frequently owners or retailer employees win prizes, institute a risk-based approach to addressing a compliance investigation backlog, and publish additional information on its Web site about measures that players can take to protect themselves against fraud or scams.