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LEADERSHIP AGENDA

Operational Scan

OPERATIONAL SCAN

DEPARTMENT PERFORMANCE

DEPARTMENT PERFORMANCE

Lottery

Terry Rich, Chief Executive Officer

Mission Statement:
The Iowa Lottery strives to administer lottery games in a secure manner to maximize revenue while maintaining the dignity of the state and the welfare of its people.

Lottery proceeds
Instant ticket sales
Online game sales
Pull-tab sales
Complaints

MORE DEPARTMENT PERFORMANCE

  • Download PDF document Performance Plan - How we measure our progress

  • Download PDF document Strategic Plan - How we plan for progress

  • Download PDF document Performance Report - How we report our progress

  • Department Home Page - Learn more about this department

Highlighted Measure:

Total annual proceeds (all moneys transferred to the state such as General Fund and Gambler's Assistance money and Veteran's Fund beginning in FY 2009).

Data Source: Iowa Lottery Authority accounting records

 

Updated 5/1/09

GRAPH - Revenues to General Fund

Why this is important:
Each year, the Iowa Lottery raises tens of millions of dollars that enrich life in our state. Lottery proceeds have four main purposes in Iowa. They provide support for veterans; help for a variety of significant projects through the state general fund; backing for the Vision Iowa program; and assistance to the Iowa Gambling Treatment Program.

In July 2008, a portion of lottery proceeds began to be dedicated to the Iowa Veterans Trust Fund, where they are used to support our state's veterans. The profits from two instant-scratch games and two pull-tab games each year are directed into the Veterans Trust Fund. The Iowa Lottery estimates that the games will provide about $2 million to $3 million in proceeds annually for the Trust Fund. The Iowa Veterans Trust Fund was created to provide assistance to qualified veterans to help pay for expenses such as job training or college tuition assistance; some dental, vision and hearing assistance; and individual or family counseling programs.

Since 1992, a majority of lottery profits have been directed into the state general fund, where they are used to pay for programs that benefit all Iowans. In the Iowa Lottery's latest financial year, the lottery raised $57.2 million in proceeds that were deposited in the state general fund. Some of the programs that receive money from the general fund include education, natural resources, health and family services and public safety. The Governor and Iowa Legislature allocate money from the general fund based on where they believe those funds are needed most.

In addition to the commitment to the general fund, lottery profits are linked to the Vision Iowa program, which was implemented in 2000 to create tourism destinations in the state, assist with community attractions, and build and repair schools. Direct funding for Vision Iowa comes from gaming revenues. However, as the program was being initiated, investors indicated there was a need to strengthen the Vision Iowa bonds by dedicated $20 million annually in lottery revenues as a backup. Legislation was approved that dedicates $15 million in lottery revenues to programs for community attractions in Iowa and another $5 million to Vision Iowa programs to build and repair schools in gambling revenues don't reach that amount. Lottery funding will continue to be linked to Vision Iowa over the 20-year payback period of the program's bonds.

A portion of Iowa Lottery proceeds also are dedicated each year to the Iowa Gambling Treatment Program to inform Iowans about the risks of gambling and provide help to those for whom gambling has become a problem. Through the years, the lottery has provided more than $14.5 million in funding to the Gambling Treatment Program, which administers the statewide 1-800-BETSOFF helpline.

General Fund transfers, along with proceeds to the Iowa Veterans Trust Fund and Iowa Gambling Treatment Program, are the best overall indicator of how the Lottery is performing and represent the financial support the Lottery gives to state agencies.


What we're doing about this:
Internal integrity and security is paramount to the Lottery. Background checks are conducted on all potential employees and suppliers of major procurements before they can become members of the Lottery team or do business with the Lottery. Strict licensing requirements, including background checks, ensure that only reputable retailers sell Lottery products. The Lottery's security division conducts retailer reviews and reports its finding to the Lottery's Board. The on-line game system integrity is tested daily by an internal control system. All drawings are monitored and verified by an independent auditor. All sales reps are required to balance their ticket inventory on a weekly basis. Periodic performance evaluations and the resulting reports are also a "must" to ensure that the Lottery's integrity remains intact. The Lottery is subject to annual financial audits by the State Auditor. A major accounting firm conducts an annual performance audit on the Lottery's on-line game system.

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Highlighted Measure:

Instant ticket sales by fiscal year.

Data Source: Iowa Lottery Authority accounting records

 

Updated 5/1/09

 

GRAPH - Instant Ticket Sales


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Highlighted Measure:

Online sales by fiscal year.

Data Source: Iowa Lottery Authority accounting records

 

Updated 5/1/09

GRAPH - Online Ticket Sales


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Highlighted Measure:

Pull-tab sales by fiscal year.

Data Source: Iowa Lottery Authority accounting records

 

Updated 5/1/90

GRAPH - Pull-Tab Ticket Sales


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Highlighted Measure:

All complaints of minors buying tickets and action taken to suspend or revoke licenses.

Data Source: Iowa Lottery Authority security records

Updated 5/1/09

 

Graph - Action on Complaints

Why this is important:
Iowa Code 99G.30 requires that "a ticket or share shall not be sold to a person who has not reached the age of twenty-one." The Lottery employs continued vigilance to prevent sales to minors by investigating 100% of all complaints of minors buying tickets and take action to suspend or revoke licenses where justified. For FY06, there were a total of 7 complaints of underage persons illegally buying lottery games. After investigations by the Lottery and Division of Criminal Investigation, two complaints resulted in license suspension. The remaining 5 complaints were not substantiated with the statements. For FY07, there were no complaints of underage persons illegally buying lottery games.


What we're doing about this:
All complaints are sent to a central point of contact within the Lottery's security department, the investigative supervisor. The supervisor ensures that all complaints are assigned for investigation, monitors the progress of each investigation and makes recommendations to the VP of security, as appropriate.

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