South Carolina law requires that the Legislative Audit Council conduct periodic management audits of the South Carolina Education Lottery (SCEL). In this audit, issues addressed include procurement, ticket security, player demographics, and sales to minors.
The LAC report says “Overall, they found that the lottery was well-managed.”
In some instances, the lottery’s procurement records did not clearly state the reasons for awarding contracts to private companies which help in developing and operating scratch-off games and number selection games. However, the new director says she’ll improve that accountability.The lottery has developed a system for deterring the loss and theft for scratch-off tickets. It’s also implemented recommendations in 2005 that include the development of a methodology for setting salaries, new procedures for administering procurement cards , a new process for ending scratch-off games after top prizes are no longer available, and improved reporting of illegal gambling at lottery retail outlets.
Without an authorized contract change order, the lottery paid approximately $398,000 for a security barcode system on 241 million scratch-off tickets. The lottery has developed a system for deterring the loss and theft of scratch-off tickets.
Examples of recommendations from 2005 not implemented include the amendment of state law to allow the sale of lottery tickets on election days and the amendment of state law to authorize administrative penalties against retailers that allow illegal gambling on their premises.