Liquor and lottery officials report flat revenues, pilot kiosk expansion and seek statutory authority for online lottery sales

Wendy Knight, commissioner of the Department of Liquor & Lottery, presented the department's FY27 overview to the House Appropriations Committee, highlighting operational changes, revenue trends and a policy proposal to permit online lottery sales.

Knight described the 802 Spirits model — locally owned retail outlets operating under a state license and contractual relationship — and said the department is piloting smaller "kiosk" stores near tourist areas to capture in-state purchases and benefit local small businesses. Knight said the state does not operate the stores directly; licensees are independent business owners operating under a second-class retail license.

On revenue, Knight outlined recent transfers and projections: a projected transfer of about 16,800,000 from the liquor fund to the general fund, roughly 32,700,000 from the lottery fund to the education fund, and approximately 6,680,000 from sports-wagering to the general fund (FY26 projections reported during testimony). She said lottery sales and liquor sales have flattened or declined slightly, reflecting national trends and lower jackpot activity.

The department described a policy initiative to authorize online lottery purchases via phone or website; Knight said this would be "the next evolution" of retail lottery and emphasized that the proposal carries no FY27 budget ask (the department is working with policy committees on statutory language). Knight also highlighted a B2B online ordering rollout for on-premise licensees ("802 Connect") and the department's emphasis on operational efficiency as revenues change.

What happens next: the committee asked follow-up questions about projections and marketing; the department said more detailed FY27 projections would be provided and that statutory language for online lottery authorization is being developed.