OPERATIONAL OVERVIEW

The Louisiana Lottery Corporation (LLC) was created by the 1990 Louisiana Legislature and approved by a statewide vote as a way to increase state revenue without increasing taxes. Due to the Lottery's unique operations, the legislature recognized a corporate structure would suit it best.

Mission Statement
To generate the maximum revenue for the state of Louisiana while upholding the highest standards of integrity and public trust.

Oversight
To ensure the highest level of accountability, the following entities have varying degrees of oversight over the corporation, including review of its budget and administrative rules and drawings: Governor of Louisiana, Joint Legislative Committee on the Budget, Senate Judiciary B Committee, House Committee on Administration of Criminal Justice and  Office of the Legislative Auditor. 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 with one of those at-large members being selected from a list of five candidates submitted by the Louisiana Oil Marketers and Convenience Store Association. 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. The state Attorney General's office represents the corporation in legal matters.

In addition to a succession of annual "unqualified" opinions from the Office of the Legislative Auditor, the LLC has received recognition from the Government Finance Officers Association for excellence in financial reporting for the past 12 years and was the first Lottery in the country to receive industry verification of its quality assurance processes.

Staffing & Offices
The Lottery employs approximately 130 people, including both full-time and part-time employees, in its downtown Baton Rouge headquarters, distribution center, as well as regional offices in New Orleans, Lafayette, Alexandria, Shreveport and Monroe. Regional staff process and pay winning tickets and support Lottery retailers, including training, monitoring product inventory and point-of-sale opportunities, assisting with in-store promotions, resolving problems, explaining new games and changes and ensuring compliance with Lottery rules. Operational management functions, including sales, accounting, auditing, marketing and public relations, human resources, security and information systems, are conducted from the Lottery's corporate headquarters. The Lottery's distribution center oversees inventory management and instant ticket order fulfillment.

Products
The Lottery offers two types of games, scratch-offs and draw-style. Scratch-offs or instant tickets require players to scratch off a latex surface on the ticket to find out immediately if they have won. The Lottery introduces about 50 different scratch-off games each year with varying prices of $1, $2, $3, $5 and $10. Ticket art, game design and prize structures are developed by Lottery staff. Tickets are printed by the Lottery's vendor, Scientific Games, under exacting quality control and security standards comparable to those in currency printing. As soon as all of the top prizes in a scratch-off game have been claimed, the Lottery immediately begins the process of pulling the game from sale. Games may also be closed when ticket inventory is near sell-out or at the discretion of the Lottery's president.

To play draw-style games, players choose their own numbers or allow the Lottery's computers to choose their numbers and then wait for a drawing to be held to see if they have won. From time to time, the Lottery may also conduct raffle-style games with a set number of sequentially numbered raffle tickets for sale. The terminals used for draw-style games in retailer locations are part of a closed satellite communications network provided by Lottery vendor, INTRALOT. The INTRALOT system cannot be accessed via the Internet or by the Lottery. This system is also separate from the Lottery drawing machine system. Current draw-style games include: Lotto, Easy 5, Pick 4, Pick 3, Powerball and Mega Millions, which are multistate games in which Louisiana participates. Louisiana law requires ticket purchasers to be at least 21 years old.

Retailer Distribution
Lottery products are sold through a distribution network of roughly 2,800 Louisiana businesses who comply with an extensive licensing process that includes compliance with the Americans With Disabilities Act, Labor and Revenue and Taxation requirements and background screenings. Licensed retailers must display a sign indicating their status. Retailers earn a 5 percent commission as well as other incentives and bonuses on the sale of Lottery tickets. Retailers must also cash winning tickets valued up to $50 and are encouraged to cash winning tickets worth up to $600.

Prize Payment
Winning tickets of more than $600 must be claimed at a Lottery office. Lotto jackpots and Powerball prizes of at least $510,000 must be claimed at Lottery headquarters. Draw-style game winners have 180 days from the drawing to claim their prize and scratch-off winners have 90 days from the date of the announced game closure. For security purposes, players are strongly encouraged to sign the back of their tickets immediately after purchasing.

By law, the Louisiana Lottery must report winnings from each single ticket with a prize value of more than $600 to the Internal Revenue Service and the Louisiana Department of Revenue and Taxation. Income tax regulations require the Lottery to withhold 25 percent federal taxes from each prize of more than $5,000 and 5 percent state taxes from prizes of $5,000 or more. Winners are required to provide current photo identification and their Social Security card when claiming a prize at a Lottery office.

Game instructions, winning combinations and odds can be found in retail brochures and the Lottery's website. Winning numbers can be checked on the Lottery's website, at retailers, on nightly broadcasts of participating television stations or by calling 1-800-735-5825.