A state audit released earlier this year found that administration accounted for about 14 percent of its overall operating expenses, it was not the major driver for the lottery’s costs.
Instead, expenses related to prizes — such as advertising and, especially, payouts to winners — are the primary driver of operating expenses, and that small changes in that area could have a significant impact on the lottery’s bottom line, according to the audit.
To address concerns of lottery officials that the bill could hurt sales because of decreased prize money, something that would also reduce revenue for the programs, the bill stops mandated increases if net sales revenue of lottery tickets drops by 5 percent from the year prior. The lottery last year returned a record $1 billion for education in Georgia.
Passage send the bill to the state House for consideration.