An insight into how lottery games are regulated
The gaming industry is one of the most honest industries on the planet. You may not believe it, but it is true. One reason is the standardization of operations and equipment through memberships in gaming standards associations. Another is the fact that the odds on the lottery results are always geared towards the industry. That is how all games of chance make money. And the most important reason is that all gaming is controlled and regulated by a Gaming Commission or Agency in its operating jurisdiction.
The Gaming Commission
The Gaming Commission, or gaming regulator, is the government body that allows and controls, and polices all gaming activities within its jurisdiction. This includes bingos, raffles, casinos, and lottery. The goal of the regulator is to ensure that gaming operators are conducting their activities in an honest and transparent fashion in the interest of all stakeholders, including the gambling public. For lottery players, regulator rules and regulations ensure that every draw is conducted honestly and every legitimate winner is identified, confirmed, and paid, and that all profits made on the sale of lottery tickets are distributed to the charities or agencies that benefit from lottery games and income.
Lottery Regulation
Regulators police the industry by first creating the rules and regulations that oversee the operation of all gaming. Specific regulations are also created for each part of gaming, such as those for casinos and those for lotteries. For operators to be able to offer lottery draws, they must adhere to the rules governing creating a lottery, the layout of the lottery, and how it will be drawn (such as the amount of numbers needed to win a prize and odds of winning any prize compared to winning a specific prize.)
The operator has to submit the lottery to the regulator for approval, as well as all gaming equipment (both physical and electronic) and parts. The operator must also have a detailed plan, again satisfying the rules and regulations for the regulator, on the security that will be used to protect the lottery equipment and draws. The equipment must be secured, checked, and re-secured before and after each draw. The equipment must be stored in a locked area subject to twenty-four hour video surveillance. The equipment may also be under the watch of a security officer at all times.
When draws are ready to be conducted, the equipment is moved to the drawing area under video and physical security. The equipment is checked to ensure it has not be tampered with prior to and immediately after the draw. The draw is conducted under video and the eyes of an independent witness from an outside auditing firm. Reports of each draw are sent to the gaming regulator for verification and investigation if warranted.
Everyone who works within the industry, both lottery employees of the operator, employees of suppliers, and retailers who sell the tickets, all have to be vetted and licenced before they can work for the operator or supplier. A policing agency usually takes care of this due to the ability to easily acquire fingerprints to be placed on file and interviewing techniques that can bring out issues that may disqualify someone from getting a gaming licence.
So although the operator is the one that does the hiring, sells the tickets, and runs the draws, it is the regulator who ensures that this is all done honestly, with full integrity and transparency for all those involved.
The regulator’s job is not only varied but quite extensive and controls ever aspect of a lottery game and draw. As such, faith in the lottery that every winner who claims to be a winner is verified and paid, and any discrepancy in lottery operations or wins is investigated and resolved quickly for legitimate winners to get their money.