Division of the Lottery

Advertising Program Controls

The Division of the Lottery administers games of chance to raise revenue for public purposes determined by the Legislature. We audited selected aspects of the Divisionís advertising practices and found that a number of improvements were needed. For example, contracting practices were not always sufficiently competitive, and the amount paid to a contractor who brokered printing services may have been significantly higher than were necessary. We estimated that, during the year we audited, as much $816,912 in commissions was paid to this broker. We also found indications that contracts with cost overruns may not have been adequately monitored. In addition, many of the lottery ticket agents we visited were not displaying the advertising materials that had been shipped to them, and information used to evaluate the effectiveness of television advertisements was not provided to the Division in a timely manner by a contractor. We made several recommendations aimed at strengthening the Divisionís controls over its advertising contractors.

For a complete copy of Report 2000-S-26 click here.
For a copy of the 90-day response click here.