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Retailer Security

Retail Security Reminders

Security Brochure


The best way to avoid inventory problems is to account for each and every ticket. The Security Division recommends keeping a written inventory of all lottery products. Lottery Investigators and Sales Representatives can provide samples of forms for use in your daily inventories.

The following suggestions can help prevent inventory loss:

  • Only management should be responsible for receiving, storing and activating tickets.
  • Check lottery shipments and confirm receipt of each pack against the accompanying invoice.
  • Keep all terminal pack activations, validations, payout slips, and invoices in a secure place until such time as your records can be reconciled.
  • Take a beginning and ending inventory of all tickets at shift change, or, at least at day’s end, and run a report from the terminal. Maintain written documentation of these inventories for a minimum of 3 months on forms provided by the KLC.  These records will assist lottery investigators in the event of internal thefts, or questionable lottery activity, etc.
  • Prevent attempts to cash previously validated tickets by tearing them in half or defacing them.
  • Report suspicious sales patterns, cancellations, or anything else that raises your suspicions to Lottery Security immediately.
  • Always require players to be present when ticket sales are made. Never allow phoned in wagers.


Always report stolen tickets to the police and Kentucky Lottery Security! The sooner you report a theft or loss, the sooner we can help.

Through our tracking capabilities, many times we can resolve problems quickly and help identify the individuals responsible for your loss.

Here’s what we need:

  • Game Number(s)/Pack Number(s) & Ticket(s). Ex: 212-0012178, Tickets 151 through 299
  • Date and approximate time tickets were taken.
  • Suspect(s) identity, if known, and name of the investigating law enforcement agency, officer’s name, and the case number if available.


  • Check and verify inventories.
  • Check employee backgrounds before hiring and periodically thereafter.
  • Check and analyze trends by shift and compare to store employee schedules.
  • Check that cash register receipts match lottery sales reports.
  • Check scratch-off ticket sales by shift.
  • Check consistently!


The Kentucky Lottery Corporation is committed to ensuring that all aspects of our organization and games are honest, fair, and ethical. If you know of or suspect any impropriety, please contact us at: (Kentucky Lottery Corporation Fraud Watch), or at our Hotline at (502) 560-1813. You may remain anonymous; however, the more information you provide the greater the likelihood for a successful follow-up.


The Division of Security offers a program for manager training, or other group meetings on security measures and practices. It includes general security ideas and suggestions related to hiring, physical security, criminal statutes and the handling of Lottery products. We will come to your location, or any other place of your choosing, at any time. If interested, contact Bill Hickerson at 502-560-1805 or Greg Baird at 502-560-1806 or e-mail us from this site.


Kentucky Lottery Security 
(502) 560-1804

(502) 560-1910 
24 hours per day, 7 days per week

Theft Reimbursement Policy

Theft is never something you want to think about, but in the event it should happen to you, here is the KLC’s ‘Retailer Theft Reimbursement Policy’:

The Kentucky Lottery will reimburse/credit retailers for stolen instant scratch-off tickets under the following conditions: 

  1. The theft must be a result of a burglary or robbery. Any other incident (ex. shoplifting) shall be at the discretion of the Senior Vice President for Security. Internal/employee theft does not apply. The theft must be reported in a timely manner directly to the Division of Security @ 1-502- 560-1804. Thefts occurring during KLC non-business hours, weekends and holidays should be reported to the Customer Service Department @ 1-800-937-8946. 

    2. The reporting person must be a responsible representative of the business/company i.e. owner, manager, or supervisor. 

    3. The reporting person must be able to provide exact game number(s), pack number(s) and ticket range(s). 

    4. The reporting person must be able to provide a police report number, name of police agency and investigating officer's name. 

    5. A copy of the police report must be sent to the KLC Division of Security within 10 business days and must contain the information identified in item #4. 

Kentucky Lottery Corporation 
Division of Security 
1011 W. Main Street 
Louisville, KY 40202 
Fax: (502) 560-1535 

  1. The final total reimbursement/credit due will be determined by the KLC Accounting Department. 
  2. The Security Department reserves the right to deny reimbursement/credit for inaccurate, incomplete or misleading information. 
  3. This policy applies to instant scratch-off tickets only.