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 Lottery Enforcement

Lotteries are highly regulated and enforced

The lottery industry is not just another ho-hum business category. It is actually a highly regulated industry almost as much as nuclear energy is. And the gaming commission is the authority over the operator and enforces their rules and regulations very stringently to ensure the lottery is open, honest, and transparent to the public. Within that enforcement parameter, many different methods of enforcement exist.

Gaming Commission and Licensing

For instance, the gaming commission issues licences to the operator, all of the operator’s employees, and all the suppliers of lottery equipment, gear, and advertising firms. Using intense investigative and interview techniques, everyone and every company involved in the lottery operator’s business has to be vetted to ensure that there is a very low risk of anyone intending to do anything outside of the rules and regulations. Cheating, fraud, or other activities that would compromise the honesty and integrity of the lottery are kept to a very low probability. Those who pass the vetting are then licenced to work for the operator, and they have to renew their licence on a regular basis as required by the commission. Any issues arising regarding the person’s actions could jeopardize their licence, their renewal, and therefore their job.

The commission also regulates the conduct, management, and operation of the lottery and retailers very closely. Everyone must follow the rules and regulations to the tee, and if not, severe penalties can be imposed. Regular and unannounced inspections of both retailers and the operator, including equipment and supplies, ensure compliance with the rules and regulations and help to keep the lottery free from fraud, interference, and tampering. It makes sure the gaming public trusts the gaming businesses.

The commission also must test and approve all lottery equipment and lottery procedures before giving the ok for the operator to commence draws. This also includes any upgrades, replacements, or maintenance. Once tested and approved, only that equipment and the procedures may be used to conduct the lottery. Any equipment or procedures used that have not been tested and authorized could cause the lottery to be temporarily, or permanently halted.

The commission also will investigate if there is an insider win (a gaming employee or relative of one winning a large jackpot,) any type of suspicious wins, and any complaints of criminal activity lodged against a retailer. The commission may ask for assistance from local, state or provincial, or federal law enforcement agencies to assist in the investigation and any subsequent legal trial.

Full and complete reports of lottery operations, including income, expenditures, prizes, games, draws, issues, and a lot more, must be supplied to the commission as per regulations. Any report missing information, that is late, or is suspicious, may trigger an investigation. An investigation may also be triggered by any other licence condition breach.

Gaming Breaches

If a breach occurs, the operator may be subject to fines, sanctions, and possibly imprisonment. Staff who may be involved, even very slightly, may also face fines or prison time. Lottery fraud is both a financial and publicity nightmare that it usually is dealt with as quietly as possible When it happens, the investigation not only focuses on the who, what, where, when, and why, but also on how, and how to rectify the damage so it can be prevented from being repeated in the future.

You may not ever see what goes on behind the lottery and the draws, but you can be rest assured that a lot is going on to ensure you are playing an honest, open, and transparent lottery game, each and every time you buy a ticket.