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How Louisiana runs one of America's leanest lottery operations

In this exclusive interview with Lottery USA, Rose Hudson shares the formula for maximum education dollars.

Louisiana Lottery CEO, Rose Hudson.
Louisiana Lottery CEO, Rose Hudson. Photograph credit to the Louisiana Lottery.
Samantha Herscher

The Louisiana Lottery operates with a 3.7% administrative cost ratio. Most state lotteries can't match that efficiency.

Rose Hudson, the organization's CEO and employee number four since 1991, has helped build an operation that has transferred $4.9 billion to education. The formula? A lean structure, strong vendor partnerships, and disciplined cost management. Hudson says:

Every dollar saved on administrative costs is a dollar that can be transferred to the state. Efficiency isn't just a metric for us — it's core to our mission.

The education impact

Since 1991, Louisiana Lottery revenue has flowed into the Minimum Foundation Program. This supports K–12 public education across the state.

The Lottery's job is simple: generate maximum revenue while maintaining integrity and public trust. The state and local entities decide how to spend those education dollars.

Hudson sees the Louisiana Lottery's role as providing consistent, reliable funding. Year after year. No matter what happens with jackpots.

A powerful product mix

Jackpot games fluctuate. Instant-win and numbers games don't.

When jackpot sales dipped in fiscal year 2025, instant-win and numbers games kept revenue stable. The Louisiana Lottery generated $585.2 million in total revenue and returned $181.5 million to education, 31% of annual revenue. Hudson explains:

Offering a balanced portfolio of games with different price points, play styles, and prize structures helps reduce volatility.

The Product Development Team launched 63 new scratch-off games in fiscal year 2025. Planning starts five to six months early, driven by sales data, revenue goals, and player preferences.

Louisiana-themed games work. So do annual favorites and partnerships like the one with the New Orleans Saints. The team brings together expertise from Product, Graphics, Marketing, and Sales to deliver a fresh portfolio that meets player expectations.

The digital question

Louisiana law doesn't allow online lottery ticket sales. Any change requires legislative action.

Hudson says there's no timeline for iLottery in Louisiana. But the Lottery is watching how other states handle it. She commented:

We continue to monitor how the industry is evolving and to gather information from other states as we consider what any potential legislation in Louisiana could look like in the future.

Any model would need to work alongside brick-and-mortar retailers while prioritizing responsible gaming and public trust. The Louisiana Lottery doesn't engage with or authorize lottery courier services.

Meanwhile, the organization has made targeted investments in recent years. Website enhancements. An optimized mobile site. A mobile app. Now the focus is on maximizing those systems rather than pursuing major new initiatives.

Balancing innovation and responsibility

Hudson doesn't see a conflict between innovation and player protection. Innovation happens within a framework that prioritizes transparency and public trust.

By law, the first $500,000 of Lottery revenue each year goes to the Louisiana Department of Health's Office of Behavioral Health. That money supports problem gambling awareness, prevention, and treatment programs. Hudson explained:

As we explore new products and technologies, responsible gaming principles remain foundational to our decision-making.

Industry evolution

Hudson doesn't see one big thing reshaping lotteries. She sees gradual adaptation as customer behavior shifts toward digital and online spaces.

Sports betting has accelerated that conversation across the industry. Lotteries are thinking differently about player engagement, communication, and accessibility. She continued:

For us, it is less about chasing one big new thing and more about thoughtfully adapting to how consumer behavior is changing.

Multiple state lotteries are discussing a new multi-state game titled Millionaire for Life. The Louisiana Lottery doesn't plan to join. The game is being developed through the Multi-State Lottery Association.

From day one to now

Hudson has been with the Louisiana Lottery since the beginning. Employee number four.

She remembers working on the very first ticket — Louisiana Treasures. She remembers the launch events and the excitement of building something new for the state. She expressed:

It has been incredibly rewarding to see how the organization has grown over the years and to know I have been part of that story from day one.

The administrative cost ratio tells the story. At 3.7%, Louisiana runs one of the leanest lottery operations in America. That efficiency turns into education dollars.

Every year. Without fail.

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