Senate committee recommends Alec Thompson to lead Arizona Lottery after confirmation hearing

Alec Thompson, the governor's nominee for executive director of the Arizona Lottery, appeared before the Arizona State Senate Committee on Director Nominations and won a unanimous committee recommendation to the full Senate following a hearing that ranged from retailer strategy to responsible‑gaming safeguards.

Thompson told the committee he has led the agency since April 19 (he said he submitted nomination paperwork in April) and described the Lottery as “a $1,500,000,000 enterprise” that has returned record transfers to the general fund under his leadership. “When you play, Arizona wins,” Thompson said in his opening remarks.

The hearing centered on three recurring themes: the Lottery's relationship with 3,500‑plus retail partners, steps the agency is taking on responsible gaming, and a legislative budget request for additional marketing funds. Thompson said retail remains the backbone of Lottery sales and that the agency has added roughly 500 new quality retailers during his tenure and supports about 3,600 retail locations across the state. He said the agency is expanding vending operations and deploying digital menu boards in stores to increase sales.

On responsible gaming, Thompson told the committee the Lottery is pursuing Level 2 certification from the World Lottery Association and intends to pursue higher levels. He said the Lottery coordinates with the Arizona Department of Gaming, runs campaigns during Responsible Gaming Month and requires staff to be trained to recognize signs of problem gambling.

Senators pressed Thompson on sponsorship choices and advertising. Thompson said the Lottery maintains an application process for sponsorships, that marketing decisions are developed by the Lottery's marketing team and its outside agency using return‑on‑investment analyses, and that he would follow up with the committee with written materials about specific sponsorships when requested. He confirmed the Lottery’s recent marketing outlays of about $15.5 million and said the office has requested a $4 million marketing increase in the executive budget to modernize outreach and support product launches.

Several senators raised equity and harm concerns. Senator Ortiz and others cited peer‑reviewed research showing higher lottery participation among certain demographic groups and asked what the Lottery is doing to avoid disproportionate targeting of vulnerable populations. Thompson replied that the agency follows industry marketing rules, has increased responsible‑gaming efforts, and runs campaigns such as a “gift responsibly” effort to discourage giving tickets to minors; he said Arizona’s minimum age to purchase is 21.

Retail and gaming competition from sports betting and online operators was a focus. Thompson said new market entrants have reduced the Lottery’s “share of voice” in traditional advertising, which factored into his request for more marketing funds; he also pointed to national board service (Powerball, the Multi‑State Lottery Association and the National Association of State and Provincial Lotteries) as a source of shared industry strategies.

Three industry and public witnesses backed Thompson in public comment: Don Isaacson for the Arizona Licensed Beverage Association, Lisa Bednar for the Arizona Food Marketing Alliance, and Shannon Scheele (law‑enforcement member of the Arizona Lottery Commission). Each praised the nominee’s engagement with retailers and commission work.

After public testimony the committee moved to recommend confirmation. A motion to recommend Thompson was made on the record and the clerk called roll; the committee recorded five ayes and no nos. The committee did not record any dissents in committee. The motion’s outcome: recommendation to the full Senate for confirmation.

Thompson said he negotiated an extension of the Lottery’s central gaming system contract and expects a new system to be live around mid next year; he said the upgraded system will bring additional security tools. He also emphasized the Lottery’s mission to maximize net revenue for public benefit and said the operation supports state investments without raising taxes.

The committee recording closes with the committee reporting a vote of 5 ayes, 0 nos and 0 not voting to recommend Thompson’s confirmation to the full Senate.