Montana Lottery Audit Reveals $18.5 Million Financial Miscalculation

A Legislative Audit Division report found that the Montana Lottery miscalculated its finances by $18.5 million over several years. The report determined this amount resulted from the agency overstating and understating its accounts, not from missing funds. The audit also revealed that the lottery made only three financial transfers in fiscal year 2023, instead of the required four.

The audit identified accounting errors and failures in internal controls, recommending that the Montana Lottery implement solutions to ensure complete and accurate financial reporting. The lottery generates revenue by retaining ticket sales and wager revenue not spent on prizes or expenses, which is statutorily required to be transferred to a scholarship fund and the General Fund.