(The Center Square) – Transfers from the Florida Lottery to education were down by 3% or $65.8 million less than the prior fiscal year, according to a report released by the Legislature’s research arm.
The Office of Program Policy Analysis and Government Accountability found that transfers from the lottery to the Educational Enhancement Trust Fund were $2.4 billion in fiscal 2023-24.
Prizes added up to $6.3 billion and retailer commissions (6% of sales) totaled $571.6 million.
Florida had $9.4 billion in ticket sales, ranking first among U.S. lotteries and seventh in per-capita sales.
According to the report, lottery officials blamed a decrease in sales due to “broad economic factors such as inflation and rising interest rates that constrained consumer budgets.”
The report also said the lottery continues to outperform legislative standards on its operational expenses, which are the second lowest nationally behind only Rhode Island.
State law requires the lottery’s expense rate to be 9.25% or less and in fiscal 2023-24, the Florida Lottery’s expense rate was 8.31%, up from the previous year when it was 7.96%.
The authors of the report say that other states have additional games and distribution methods for products not used by the Florida Lottery.
They also say that implementation of new games and distribution methods, along with adding new retailers could increase revenues, but could come in conflict with the gaming compact between the Seminole Tribe and the state.
The report highlighted several initiatives by the lottery, including investigations of unauthorized activity, responsible gaming education efforts and an upgrade for its retailer management software.
The lottery will also launch a new prize payment system after April that’ll allow players to redeem winning tickets through the lottery’s mobile app.
The agency’s analysis of lottery sales data revealed that 14,567 retailers with 42 different business types sold lottery tickets in fiscal 2023-24. Most of those sales, 93%, were convenience stores that sell gas, convenience stores that don’t and supermarkets.
