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Retailer Security

KLC Security Brochure

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:  klcfraudwatch@kylottery.com (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 Greg Baird at 502-560-1806 or Kevin Nally at 502-560-1803 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

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

  • The theft must be a result of a break-in (burglary) or robbery. Snatch & Run type thefts during business hours can receive credit if entire ticket dispensers are taken.
  • The reporting person must be a responsible representative of the business: owner, manager, or supervisor.
  • The theft must be reported on the day of discovery to the Division of Security. For Monday-Friday call 1-502-560-1804. For any other time call the Retailer Hotline at 1-800-937-8946, or email security@kylottery.com  

Retailers are strongly encouraged to take daily inventories of scratch-off tickets at shift changes, or if the business closes for any length of time, such as overnight.

  • During an initial contact with a Security representative the following will be asked for:
  • Exact game number(s), pack number(s) and ticket range(s) for the stolen tickets.
  • Name of the police agency who will be investigating. And, if available, the police report number, and investigating officer's name.
  • Retailers will be allowed one business day from initial contact with Security representative to provide a complete listing of the stolen tickets. (Game #, Pack # and stolen Ticket # rang for each)
  • Non-activated tickets will receive credit so long as game & pack number are provided.
  • A copy of the police report must be sent by retailer to the KLC Division of Security within 10 business days:

Kentucky Lottery Corporation

Division of Security

1011 W. Main Street

Louisville, KY 40202

Fax: (502) 560-1535

Email: security@kylottery.com

  • Retailers able to provide information as outlined in this policy will receive a Retailer Proof of Loss form from the Division of Security, which must be filled out and returned to the Division of Security within ten business days of receipt.
  • The final total credit due will be determined by the KLC Retail Accounting Department.


  • The Security Department will deny credit for inaccurate, incomplete, or misleading information, or information received outside the time frame established in this policy.
  • Internal (employee) theft will not be covered.
  • Theft due to retailer carelessness, such as activated tickets left unattended, or tickets placed within reach of, or given to, a player before payment is received will not be covered.

This policy will be effective 04/01/2021 and applies to instant scratch-off tickets only.