2005 Arizona Revised Statutes - Revised Statutes §5-505  Apportionment of revenue

A. Not more than eighteen and one-half per cent of the total annual revenues accruing from the sale of lottery tickets or shares and from all other sources shall be deposited in the state lottery fund established pursuant to section 5-521 to be expended for the following:

1. The payment of costs incurred in the operation and administration of the lottery, including the expenses of the commission and the costs resulting from any contract or contracts entered into for consulting or operational services, or for promotional and advertising services. Not more than four per cent of the total annual gross revenues of the lottery shall be expended for promotional or advertising services.

2. Independent audits, which shall be performed annually in addition to the audits required by section 5-524.

3. Incentive programs for lottery sales agents and lottery employees.

4. Payment of compensation to licensed sales agents necessary to provide for the adequate availability of tickets or services to prospective buyers and for the convenience of the public. Compensation of licensed sales agents shall be at least six and one-half per cent but not more than seven per cent of the price of each ticket or share that a retail sales agent sells in instant games and on-line games, less the price of any tickets or shares that are voided.

5. The payment of reasonable fees to redemption agents as authorized by section 5-519.

6. The purchase or lease of lottery equipment, tickets and materials.

B. Not less than twenty-nine per cent of the total annual revenues accruing from the sale of lottery tickets or shares in on-line games and not less than twenty-one and one-half per cent of the total annual revenues accruing from the sale of lottery tickets or shares in instant games shall be deposited in the state lottery fund established pursuant to section 5-521 to be used as prescribed in section 5-522, subsection A, paragraphs 3, 4, 5 and 6, and section 5-522, subsections B, C, D and E.

C. Not less than fifty per cent of the total annual revenues accruing from the sale of lottery tickets or shares shall be deposited in the state lottery prize fund established pursuant to section 5-523 for payment of prizes to the holders of winning tickets or shares or for other purposes provided for in section 5-518.

D. Except for monies for prizes expended as provided in section 5-504, subsection H and section 41-1505.10, monies expended under subsection A of this section shall be subject to legislative appropriation.