The Kentucky Lottery Corp. is cutting jobs and reducing prize payouts in order to ensure that more of its proceeds go to state government. The restructuring comes in response to the state legislature’s mandate that more lottery proceeds go to the state to help offset budget woes.
KLC’s board of directors approved a budget designed to return 28 percent of gross revenues to the state. (Returns for this past fiscal year were approximately 25 percent.) In order to achieve that, the organization is eliminating 28 positions (13 percent of its workforce), closing its regional office in Bowling Green and restructuring operations in its other regional offices in Lexington, Madisonville and Prestonsburg. The restructuring also involves reducing cash prizes and substituting free tickets for low-tier prizes in scratch-off games. Incentive compensation for retailers will also be slightly reduced.
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