LOTTERY OPERATIONS
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How did the Lottery begin?
Looking for a way for the state to generate revenue without increasing taxes, the 1990 Louisiana Legislature approved Act 1045 amending the state's constitution to create a state lottery. Due to its unique operations, the legislature recognized a corporate structure would best suit the Lottery. Voters also liked the idea and passed a constitutional amendment creating the Lottery on Oct. 6, 1990 by a 69 percent to 31 percent margin statewide. The Lottery sold its first scratch-off ticket Sept. 6, 1991. For more information about the Lottery's history, click here.
Who owns the Lottery?
Louisiana's citizens! The Lottery's mission is to generate maximum revenues for the state of Louisiana, which is the corporation's sole shareholder. Although many Louisiana businesses benefit indirectly from having a state lottery, only the state directly receives LLC profits which amount to 35 percent of its revenue. To date, the Lottery has transferred over $2.5 billion to the state treasury. For historical transfers, click here.
Who runs the Lottery?
Public trust is paramount to the Lottery's success. To ensure the highest level of accountability, the following have varying degrees of oversight over the corporation, including review of its budget and administrative rules and drawings: the Governor of Louisiana, Joint Legislative Committee on the Budget, Senate Judiciary B Committee, House Committee on Administration of Criminal Justice and the Office of the Legislative Auditor. In addition, the president of the Louisiana Lottery Corporation handles the daily activities involved with running the corporation under the supervision of the LLC's nine-member, governing board of directors. Board members are appointed to staggered terms from each of Louisiana's seven congressional districts and two members are appointed at-large. Each member is appointed by the governor and confirmed by the Louisiana Senate before beginning a four-year term. The state treasurer serves as an ex-officio board member. In addition to an annual "unqualified" opinion from the Office of the Legislative Auditor, the LLC continues to receive recognition from the Government Finance Officers Association for excellence in financial reporting. To view current financial statements, click here.
Does the Lottery determine how proceeds are spent?
No, the state's constitution dictates how Lottery proceeds are to be directed. Effective July 1, 2004, the state constitution provides that Lottery proceeds be dedicated to the Minimum Foundation Program, which funds public education in Louisiana. The dedication was a result of a 2003 constitutional amendment which was passed by voters, 64 percent to 36 percent.
Does the Lottery get any money from the state?
The Lottery is totally self funded, retaining less than 10 percent of its revenue to fund statewide operations including its headquarters, five regional offices, distribution center, technology needs, staffing and ticket printing. According to an efficiency study conducted by TLF Publications, Louisiana ranked first among U.S. lotteries in percentage of revenue transferred to their government.
Where does the money from ticket sales go?
More than fifty-two cents of every dollar goes to tens of thousands of Lottery winners every week. Unclaimed prizes are returned to players in the form of increased scratch-offs prizes.
Thirty-five cents of every dollar goes to the state treasury, as defined by the Lottery's statute. Seven cents of every dollar is used to operate the Lottery, which is completely self funded. A little more than 5 cents of every dollar, in addition to incentives and bonuses, is paid as commission to Louisiana businesses who sell Lottery games. To view an illustration of where the money goes, click here.
Is the Lottery meeting sales expectations?
The legislature's decision to pursue a state lottery was based on a 1989 study indicating expected sales between $129 million and $164 million, which the Louisiana Lottery has far exceeded every year. This is especially noteworthy considering the proliferation of additional, competing gaming venues in Louisiana, which have occurred since the Lottery was created.
How does Lottery revenue and proceeds compare to other forms of gaming in Louisiana?
The Lottery is the only state-owned form of gaming in Louisiana. According to a report from the Legislative Fiscal Office projecting data for 2012, Lottery transfers represents 16.14 percent of total gaming industry proceeds transferred to the state, but the Lottery's share of total state gaming spending is only 4.8 percent. The reason for this difference is the effective tax rate. The Lottery's effective tax rate, which is the share of net revenue after prize expense transferred to the state, is 74.7 percent compared to an effective tax rate of 32 percent for video poker, the next highest taxed form of gaming.
Do Louisiana's border states have lotteries?
Texas and Arkansas have lotteries. Mississippi currently does not have a lottery, although Mississippi does have casinos.
How many people work for the Lottery?
The Lottery employs roughly 125 people, including both full-time and part-time employees in its Baton Rouge headquarters and distribution center, as well as regional offices in New Orleans, Lafayette, Alexandria, Shreveport and Monroe.
How many retailers sell Lottery tickets?
Approximately 2,800 businesses throughout Louisiana.
How old do you have to be to play?
According to state law, Lottery ticket purchasers must be at least 21 years of age. Individuals who sell tickets are required to obtain proof of age through a valid current drivers' license, a state issued ID card, a passport, or military or federal ID containing both a photo and date of birth.
Any person who knowingly sells to a minor can be fined between $100 and $500 for the first offense and $200 to $1,000 for each subsequent offense. Underage purchasers can also be fined not more than $100.
The Lottery's retailer regulations hold retailers responsible for their employees' adherence to this law and retailer contracts can be suspended, revoked or terminated if retailers are found not to be compliant.
Individuals who are at least 21 years of age can give Lottery tickets to a person under the minimum age as a gift, although minors must be accompanied by a legal guardian or a family member who is at least 21 years of age in order to claim a Lottery prize. Underage people can sell Lottery tickets if they meet the minimum employment age of 14 and are employed by a licensed Lottery retailer.
The 21 minimum age requirement to purchase Lottery tickets changed from 18 years of age in 1998 to coincide with the age requirement for other forms of gaming in the state. Louisiana is one of only a few states that requires Lottery ticket purchasers to be at least 21 years of age. Most states with lotteries have a minimum age requirement of 18.
Can I buy Lottery tickets with credit or debit cards?
Administrative regulations do not prohibit the use of credit cards to purchase Lottery products. Even though regulations allow credit cards to be used to purchase Lottery tickets, retailers can decide what form of payment they will accept and some do not accept credit cards to buy Lottery tickets. Regulations do prevent retailers from extending individual store credit for the purchase of Lottery tickets.
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