ORLANDO, Fla. – Update:
Following a News 6 hidden camera investigation into underage lottery ticket scales, Wawa convenience stores have begun relocating lottery ticket vending machines within all of its 86+ Florida locations.
In many stores, Wawa has placed the vending machines near the buildings’ front doors where a checkout counter once existed and in the direct line sight of Wawa cashiers.
Wawa has also changed the location of lottery ticket machines in all future Florida locations, according to a company spokesperson.
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As the Florida Lottery reports record-breaking ticket sales to help fund education, a News 6 hidden camera investigation is raising questions about retailers' efforts to prevent children from illegally purchasing lottery tickets.
A 13-year-old and 14-year-old working with News 6 entered several Central Florida gas stations and grocery stores to see if employees would stop them as they pretended to buy lottery tickets from vending machines.
Of the 10 retailers visited by News 6, only the employees of a Publix supermarket stopped the boys from trying to buy lottery tickets. No one questioned the boys' ages at three Wawa convenience stores, two Walmart Neighborhood Market locations, two 7-Eleven stores, a Winn-Dixie supermarket, and a Speedway gas station.
"They weren't paying attention to us at all," said Joshua, 14, who volunteered to help News 6 with its investigation. "A lot of the stores we went to are not doing a very good job."
Following News 6’s investigation, convenience store chain Wawa announced it will be relocating lottery vending machines within some of its Florida stores so employees can more easily monitor the devices and prevent minors from buying tickets.
Hidden camera investigation
It only takes a few seconds for a lottery vending machine to dispense a scratch-off ticket or a ticket for a terminal game such as Powerball or Mega Millions. However, News 6 wanted to give retailers a reasonable amount of time to notice the boys at the machine and take action.
At most locations the boys stood at the machines for 2 to 3 minutes pushing buttons and pretending to insert cash. In some cases the boys slid $50 bills into the vending machines, knowing the devices would reject the payment since the machines only accept denominations up to $20. The boys never actually purchased a lottery ticket, which would have violated Florida law.
"We were there long enough. Way longer than we should have been for them to see us," said Tyler, 13.
As the boys pretended to purchase lottery tickets from the vending machines, a News 6 photographer used a hidden camera to record their actions and the actions of store employees.
In some stores like 7-Eleven, clerks and cashiers were preoccupied with customers and did not appear to pay much attention to the lottery vending machines. At other locations, including a Walmart Neighborhood Market, employees stood feet away from the boys.
“One looked over at us and just shrugged her shoulders and went back to what she was doing,” Joshua told News 6.
At a Winn-Dixie supermarket, two employees walked past the boys at the machine without inquiring about their ages while nearby cashiers chatted with each other.
“A couple of them looked at us, but didn't care,” said Tyler.
Minors redeem winning ticket
Besides having plenty of time to purchase lottery tickets from vending machines undetected, News 6 discovered it is also possible for minors to redeem winning tickets from store clerks.
With the hidden camera recording, 13-year-old Tyler entered A&P Gas and Convenience in Orlando and attempted to cash a winning ticket that had been legally purchased by a News 6 employee.
“(The clerk) took it. A machine went ‘cha-ching!’ And he said ‘You’ve won ten dollars’ and he gave it to me,” Tyler explained. The clerk never asked about Tyler’s age, even though he was wearing a uniform from a local middle school.
Florida law prohibits retailers from paying prizes to minors unless the winning ticket was legally purchased by an adult and given to the child as a gift. In such cases, the payment must be made to an adult in the child’s family or a legal guardian, according to state statute.
The owner of A&P did not return a phone message News 6 left with an employee.
Underage gambling may harm children
"This is a grave concern," said Jennifer Kruse, the deputy director of the Florida Council on Compulsive Gambling. “As their brains are developing, we need to take steps to protect kids from engaging in risk-taking behaviors.”
The nonprofit organization, which takes a neutral stance on legal gaming, occasionally receives phone calls from adolescents on their anonymous helpline (888-ADMIT-IT) seeking treatment for gambling addiction.
According to research conducted by the Council, 3.8 percent of Floridians ages 13-17 are considered problem or pathological gamblers, and 8.2 percent are at-risk. That study was conducted in 2002, years before mobile devices made it easier for kids to access online gambling websites and prior to the Florida Lottery introducing vending machines at gas stations and grocery stores.
"The same attention should be given to this issue as it is to alcohol sales to minors,” said Kruse.
In fact, the penalties for retailers who knowingly sell lottery tickets to people under the age of 18 are actually more severe than providing alcohol or cigarettes to children: one year in jail and a $1,000 fine. The sale of booze and tobacco to minors by first-time violators carries a maximum 60-day jail sentence and a $500 fine.
“It seems harmless, but it's an introduction to gambling,” said Kruse, who believes parents are often unaware of it. “Oftentimes the first types of gambling adolescents are exposed to is the lottery, because they tell us that on the helpline.”
Publix employees question boys’ ages
During News 6’s investigation, a Publix supermarket in Altamonte Springs was the only retailer to stop the boys from attempting to buy lottery tickets.
Less than a minute after Tyler and Joshua approached the vending machine, a Publix cashier ringing up a customer’s groceries noticed the boys and quickly waved over a co-worker.
“He said, ‘Are you guys over 18?’” Joshua explained. “And we said, ‘No’. And he was like, ‘You can’t be buying lottery tickets.’”
“Our customer service associates and all associates on the front end are aware and make certain (lottery vending machines) are utilized by the appropriate customers,” said Publix spokesman Dwaine Stevens.
Wawa machines in questionable locations
Unlike Publix or Winn-Dixie, where the lottery vending machines are typically located at the front of stores near checkout lanes, the devices installed at Wawa convenience stores in Central Florida are usually found at the rear of the stores.
Under Florida law, lottery ticket vending machines must be located “in the retailer’s direct line of sight to ensure that purchases are only made by persons at least 18 years of age.”
At several Central Florida Wawa locations, the lottery ticket vending machines have been installed around the corner and out of view of some checkout lanes. The views from most other employee positions are partially or fully obstructed by shelves and merchandise displays.
At other Wawa stores, clerks standing at the checkout lanes do not have a direct view of the vending machines. Employees in the food preparation area can see the machines, but the layout of the deli counter often forces those workers to face away from the lottery devices.
“The lottery machine was around the corner,” Tyler said about one of the three Wawa stores the boys visited. “You couldn’t see it unless you walked over to it.”
“I could not see any of the clerks,” said Joshua. That meant those clerks likely could not see him as he pretended to insert money into the machine.
“This needs to be addressed quickly,” said state Sen. Maria Sachs, D-Delray Beach, who reviewed photographs of several Wawa stores provided by News 6. “I don’t think there’s a grey area. Either it’s in compliance with the law or it isn’t.”
Sachs, a member of the senate’s Committee on Regulated Industries that oversees the Florida Lottery, knows Wawa is valuable partner with the agency and a rapidly-growing business throughout the state.
There are currently 86 Wawa locations in Florida, with 25 more stores opening by the end of next year and dozens more proposed.
The first Florida Lottery vending machine was installed at a Wawa store on East Colonial Drive in Orlando in August 2014. All current and future locations will host vending machines, said a company representative.
“Let’s catch this before it becomes too widespread,” said Sachs. “These (machines) are very attractive for kids to play, and it needs to be curtailed.”
Retailers respond to News 6 investigation
Two weeks after News 6 briefed Wawa officials on its investigation, the company announced it would be repositioning lottery ticket vending machines within some stores so employees could see them better.
“We are in the process of reviewing store layouts and are planning to relocate terminals, where appropriate, to provide clearer line of sight and improve our ability to monitor lottery sales,” Wawa spokesperson Lori Bruce wrote in a statement to News 6. “We will begin moving the terminals within the next three weeks with anticipated completion by the end of July.”
Wawa officials said they have issued immediate alerts to all stores reminding employees that “the lottery is not for kids.” The company has also updated its computer-based training program to include specific details on the store managers’ role in preventing underage sales, according to Bruce.
The Florida Lottery provides all retailers with a hand-held switch that can remotely disable ticket vending machines if the customer is suspected to be under the age of 18. Following News 6’s investigation, Wawa officials said they have installed signs on the backs of registers and in the food service area reinforcing the use of the remote switch to prevent sales to minors.
A Walmart spokesperson indicated the company would be working with its stores to ensure employees are familiar with procedures to prevent minors from purchasing lottery tickets. Walmart associates who work at the front of their stores take part in Florida Lottery training programs, according to the retailer.
"We take our obligations to follow all laws and regulations for lottery ticket sales in our stores very seriously," said Winn-Dixie spokesman Zach Bingham. "While we have passed all Retailer Integrity Compliance Checks and have never had a sales violation to a minor, we are working to constantly improve our associate training for our lottery ticket sales to be even more protective of minors in our stores."
A spokesperson for Speedway gas stations declined to comment. Representatives from 7-Eleven did not respond to multiple inquiries by News 6.
Florida lottery addresses underage ticket sales
“Maintaining the integrity of the Florida Lottery and the trust of those who play our games is among our top priorities,” Florida Lottery spokesperson Connie Barnes wrote in a prepared statement. “Since learning of your investigation, the Lottery has reached out to each corporate retail partner and again advised management of the seriousness of (ticket sales to minors) and reminded them it is a violation of Florida law and their retail contract with the Lottery.”
The Florida Lottery declined to comment on whether it believes the current placement of vending machines inside Wawa stores is “in the retailer’s direct line of sight” as required by law.
Barnes indicated the Florida Lottery has had prior discussions with Wawa management regarding the placement of vending machines in their stores. However, the government agency declined to comment on what prompted those discussions or how long ago they began. News 6 has requested public records that could potentially shed light on those conversations.
“We value our partnership with Wawa and appreciate the steps they are taking to improve the monitoring of vending machine sales,” wrote Barnes.
The Florida Lottery routinely conducts undercover security investigations to ensure retailers are properly redeeming customers' winning tickets. The agency would not disclose whether or not it conducts similar covert investigations to identify retailers who may be selling tickets to minors.
The Florida Lottery is aware of only two instances of underage ticket purchases in the past year, according to the agency’s spokesperson. In one case, a father complained that his juvenile son had stolen his winning ticket and cashed it at a retail location. After Lottery Security made contact with the store, the retailer promised to counsel all employees.
In another incident, the state’s Division of Alcoholic Beverages and Tobacco arrested a store employee for selling a lottery ticket to a minor. The Florida Lottery suspended the retailer’s lottery license until the employee was terminated.
“The Lottery investigates any reports it receives of underage individuals who have attempted to purchase or cash lottery tickets,” said Barnes. “We also conduct training for all new lottery retailers to ensure they understand the laws of Florida and the Florida Lottery contract as it pertains to underage purchases.
Lottery vending machine history
Florida’s very first 500 lottery vending machines, which only sold scratch-off tickets, were introduced in the Orlando area in 1997 as part of a pilot program. However, in 2001 the machines were removed after former Governor Jeb Bush vetoed the state’s contract with the company that leased the machines.
Eight years later, the state legislature gave the Florida Lottery money to lease 1,000 new instant ticket vending machines. In 2012, Gov. Rick Scott expanded the use of vending machines by signing a bill authorizing Full Service Vending Machines (FSVMs) that dispense both scratch-off tickets and terminal games like Fantasy 5.
"We're confident that the Florida Lottery will work with all of their retail partners to ensure all lottery tickets are legally sold," Scott's deputy press secretary said in response to News 6's investigation.
There are currently 2,000 lottery vending machines throughout the state. Those machines are located in less than 15 percent of Florida’s 13,000 lottery retailers, according to the agency.
Last year, the Florida Lottery achieved an all-time sales record exceeding $5.58 billion. Of that, $3.6 billion was paid out in prize money. An additional $1.5 billion in lottery revenue was transferred to educational programs including K-12 schools, state colleges and universities, and the Florida Bright Futures Scholarship.
Under Florida law, all lottery vending machines must include a sign that reads, “THE SALE OF LOTTERY TICKETS TO PERSONS UNDER THE AGE OF 18 IS AGAINST FLORIDA LAW. PROOF OF AGE IS REQUIRED FOR PURCHASE.”
State law also requires lottery vending machines to include a method of electronically deactivating the device for a period of 5 minutes or more.
Unlike states such as North Carolina that require ticket buyers to insert a drivers license into lottery vending machines to verify the customer’s age, Florida Lottery’s vending machines cannot automatically stop a minor from purchasing a ticket.
This year, state lawmakers unsuccessfully introduced bills that would have allowed the Florida Lottery to sell tickets at gas pumps. Under those proposals, the lottery ticket dispensers would have been required to recognize a drivers license or other form of age verification to prevent the sale of tickets to minors.
“These games are built to be successful. But there are strict regulations that must be followed,” said Sen.Sachs. “(Retailers) need to comply, and if they don’t the contract needs to be terminated.”
In recent years Sachs has unsuccessfully tried to establish a state gaming commission that would oversee the Florida Lottery, as well as casinos, card rooms, and greyhound tracks. Currently three different state agencies regulate gambling in the state.
“You need one entity to review all gaming,” said Sachs, who wants to make sure children are not able to purchase lottery tickets.
“I’ve never doubted the integrity of the Florida Lottery,” said the senator. “They need to stay on top of it and enforce their own rules.”