New equipment should boost Lottery revenues, agency says - Florida Politics

New equipment should boost Lottery revenues, agency says

The Florida Lottery projects an increase in sales from new vending machines and other equipment provided through a new multi-million dollar agency contract.

Lottery representatives on Wednesday presented to the state’s Revenue Estimating Impact Conference, a roundtable of state economists. Lawmakers use their projections to craft the state budget each Legislative Session.

Details on the actual numbers should be available later Wednesday.

Agency officials said it was negotiating a deal with a “big-box retailer,” which it didn’t name, to sell even more Lottery tickets in the state.

That’s part of a push to increase the number of places where people can buy Lottery products, which now stands at 13,000 retailers and has been “stagnant” in recent years.

Lottery proceeds go into the state’s Educational Enhancement Trust Fund, which helps pay for public education.

House Speaker Richard Corcoran had sued the Lottery last year, saying the Lottery was guilty of “wasteful and improper spending” and “signing a contract that spends beyond existing budget limitations.”

The contract is for new retailer terminals, in-store signage, self-service lottery vending machines, self-service ticket checkers and an upgraded communications network.

He won and the Lottery appealed. In December, the Lottery agreed to tweak the deal to require legislative oversight and approval. The appeal was later dropped.

The Lottery, which reports to Gov. Rick Scott, disclosed changes in what was originally a contract worth $700 million over an initial 10-year period, with three available 3-year renewal options.

Among others, the changes include reducing the number of “full-service vending machines” and requiring the vendor, International Game Technology (IGT), to “support the Lottery’s marketing efforts” by kicking back $30,000 a month.

1 Comment

  1. This is a joke! Percapita sales are stagnet, but Florida’s population continues it’s unabated annual growth rate, which means that the lottery’s revenues grow no matter what. With the extensions, this contract will run 19 years and is worth $1 Billion at least. This is unheard of for a government services contract. As for the $30,000 a month they are giving to the Lottery, that’s about what IGT pays a single contract lobbyist. Somebody ought to go to jail for stealing from the kids….

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