Overview
During our audit, we found that the Lottery did not consistently implement suspensions for violations related to cigars, electronic nicotine delivery systems, or tobacco. Specifically, 7 out of 40 violations identified by DOR did not result in the proper suspension of sales agents as required by Section II of the Lottery’s “[Massachusetts General Laws Chapter 10, Section 30B]—Lottery Sales Agent Suspension Guidelines.” For instance, one sales agent was suspended for six days instead of the required eight days, and six sales agents have yet to serve suspensions for violations that occurred in 2022.
The table below illustrates the number of suspensions by violation type based on the audit testing.
| Issue | Massachusetts General Laws Violation | Type of Retailer License Suspension | Number of Sales Agents |
|---|---|---|---|
| Inaccurate Suspension Period | Sections 34 and 35 of Chapter 64C of the General Laws | Cigarette/Smokeless Tobacco Suspension | 1 |
| Not Suspended as Required by Law | Sections 34 and 35 of Chapter 64 of the General Laws | Cigarette/Smokeless Tobacco Suspension | 1 |
| Not Suspended as Required by Law | Section 7B(l)(1) of Chapter 64C of the General Laws | Cigar/Smoking Tobacco Suspension | 1 |
| Not Suspended as Required by Law | Section 7E(l)(1) of Chapter 64C of the General Laws | Electronic Nicotine Delivery Systems Suspension | 4 |
| Total | 7 |
If the Lottery fails to adequately suspend sales agents for the specified duration or neglects to implement suspensions altogether, it creates an impression that violations are tolerated, significantly undermines accountability, and creates the appearance of favoritism as a potential explanation for disparate treatment. This not only jeopardizes the integrity of the Lottery’s operations but also permits a culture of disregard for regulatory standards.
Authoritative Guidance
According to Section II of the Lottery’s “[Massachusetts General Laws Chapter 10, Section 30B]—Lottery Sales Agent Suspension Guidelines,”
For every fifteen (15) days of a cigar, electronic nicotine delivery system or tobacco license suspension implemented by the DOR for a knowing violation of a section of [Chapter 64C of the General Laws] that is enumerated in [Section 30B of Chapter 10 of the General Laws], if said retailer is a Lottery agent, the Lottery will suspend the Lottery Agent license of said retailer for one (1) day.
Reasons for Issue
The Lottery told us that it did not suspend its sales agents for the correct amount of time or at all due to unintentional mistakes, insufficient oversight, and issues with the Lottery’s recordkeeping of cigar-, electronic nicotine delivery system–, and tobacco-related violations that were sent to the Lottery by DOR.
Recommendations
- The Lottery should establish sufficient policies and procedures to monitor the receipt and review of cigar-, electronic nicotine delivery system–, and tobacco-related violations.
- The Lottery should establish monitoring controls to ensure that Lottery employees adhere to the specific number of days of suspension and not deviate from its policy.
Auditee’s Response
- The Sales Agent that was “Not Suspended as Required by Law” due to violation of “Sections 34 and 35 of Chapter 64 of the General Laws” was subject to a 15-day tobacco suspension by the DOR. This Sales Agent was suspended by the Lottery for one (1) day on September 23, 2025.
- In a letter dated September 17, 2025, the Lottery notified the DOR that all future DOR tobacco-related suspension notification letters should be sent to a DOR/tobacco-designated Lottery email address. In this same correspondence, the Lottery conveyed its desire to discuss with the DOR the viability of further documenting and clarifying the communication process between the two agencies.
- Additionally, the Lottery has developed and implemented a DOR Tobacco Violations Policy which serves to outline the process by which the Lottery will follow when it receives confirmation from the DOR that a retailer is subject to a cigar, electronic nicotine delivery system or tobacco license suspension or revocation pursuant to [Sections 7B(l)(1), 7E(l)(1), 34 or 35 of Chapter 64C of the General Laws].
Auditor’s Reply
We commend the Lottery for developing and implementing a “DOR Tobacco Violations Policy,” and we emphasize the importance of fully incorporating our recommendations by implementing monitoring controls to ensure suspension durations are consistently applied in line with Lottery policy. Strengthening these controls will help prevent deviations, promote uniform enforcement, and lower operational and compliance risks. Based on its response, the Lottery is taking measures to address our concerns in this area. We will review progress on this issue as part of our post-audit review process in approximately six months.
| Date published: | November 26, 2025 |
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