California Lottery SmartCount

SmartCount handles the scan. LottoReco handles reconciliation.

A quick guide for California retailers comparing SmartCount, SmartScan, and LottoReco.

SmartCount can replace the paper ticket-number sheet and block scanned Scratchers after End Day. LottoReco supports SmartCount stores by comparing the printed report against sales, payouts, POS data where supported, activations, returns, prior inventory, and cashier activity.

Close Flow Preview SmartCount + LottoReco

Close Night Workflow

What SmartCount handles, then what LottoReco checks.

1
Scan active counter packs SmartCount records the Scratchers that are included in the close workflow.
2
End Day blocks scanned tickets Useful for closed-store break-ins and overnight removal.
3
Print the SmartCount report The report still needs to be checked against the rest of the store.
4
LottoReco reviews exceptions Sales, payouts, activations, returns, POS data where supported, and cashier activity.
SmartCount protects scanned tickets after close. LottoReco helps explain whether the day reconciled.

What SmartCount Does

From paper ticket sheet to printed report

SmartCount is useful because it automates the manual inventory scan. The important question is what happens after the report prints.

1

Scan active packs

Staff scan or enter Scratchers ticket information through the lottery terminal.

2

Print the report

SmartCount produces inventory and ticket-balance reports based on what the cashier scans and reports accurately.

3

End Day

SmartCount can block validations for scanned tickets after the store closes.

4

Still reconcile

The report still needs to be checked against POS sales, payouts, activations, returns, and inventory history.

If SmartCount is free, why use LottoReco?

Because SmartCount helps produce the inventory report only from what was scanned and reported accurately. LottoReco helps verify whether that report agrees with POS sales, payouts, activations, returns, prior inventory, and cashier activity. That is where owners catch the mismatches SmartCount was not designed to explain.

Lottery Theft Risk Map

What can actually go wrong in a store?

For a retailer, the issue is not only whether tickets were scanned. The issue is whether missing packs, payout errors, and POS mismatches are noticed before the loss becomes harder to recover.

After close

Break-in or overnight removal

SmartCount can create a response window by blocking scanned tickets after End Day. The owner still has to notice the shortage and report it before tickets are unblocked.

SmartCountYes
LottoRecoPartial

Display case

Pack removed but not sold

A paper sheet can catch this if the previous and current display records are accurate. SmartCount will not report the missing pack if the cashier skips it during scanning.

SmartCountNo
LottoRecoYes

During scan

Pack skipped or marked incorrectly

If a pack is removed during the day and skipped during SmartCount scanning, SmartCount will not report the missing pack.

SmartCountNo
LottoRecoYes

Backstock

Activated but never loaded

A pack activated from backstock and taken before it reaches the display may not show clearly in a spreadsheet or SmartCount alone. LottoReco gets activated-pack signals from the state lottery portal.

SmartCountNo
LottoRecoYes

Cashier desk

Payout or POS mismatch

SmartCount is not built to explain paid-in, paid-out, and POS register differences. That still needs daily reconciliation.

SmartCountNo
LottoRecoYes

Investigation

Who handled the shift?

When totals do not match, the owner needs cashier, shift, inventory, and report context in one place.

SmartCountNo
LottoRecoYes
Pattern
Source Summary
SmartCount Helps?
LottoReco Helps?
Open-store robbery across multiple stores
LA Times reported roughly $250,000 in Scratchers stolen from 44 stores in a Los Angeles County robbery case. Source
NoDoes not stop an open-store robbery and tickets stolen during selling hours are not blocked by End Day protection. The owner still has to identify exact stolen tickets quickly for the state lottery claim process.
YesCan generate a stolen-ticket report from store inventory and sales history so the owner can share the ticket detail with the state lottery.
Closed-store burglary after End Day
The Los Angeles Times reported a Garden Grove liquor-store burglary just before 3 a.m. where burglars stole thousands of California Lotto scratchers. Source
YesHelps when scanned tickets were blocked after End Day before the store closed.
PartialReports and documents the inventory issue; it does not block ticket validation.
Distraction theft and fast cashing
Colorado officials described more than $150,000 in scratch-ticket thefts from gas stations and convenience stores, with suspects redeeming prizes quickly. Source
PartialCan help only if the missing ticket range is noticed and reported before validation.
YesHelps flag inventory/report mismatches and gives managers a trail for follow-up.
Internal or manager theft
NBC Miami reported a case involving alleged theft by a convenience-store manager, with more than $300,000 in tickets taken and bulk cashing patterns noted by investigators. Source
NoSmartCount reports what was sold in the shift only if sold out or moved inventory is reported accurately; it does not provide cashier/POS/payout accountability.
YesDesigned for sales, payout, inventory, and cashier exception review.

Routine Loss Patterns

The smaller problems that rarely make the news

Most owners are not only worried about a headline theft. They are trying to catch the daily misses that add up: shift-count errors, employee shortcuts, payout mismatches, and packs that quietly move without explanation.

Routine Pattern
Best-Practice / Statistic Summary
SmartCount Helps?
LottoReco Helps?
Shift-to-shift inventory drift
Kentucky Lottery retailer security guidance recommends beginning and ending inventory each shift, watching trends by shift, and matching cash-register receipts with lottery sales reports. Source
PartialHelps with the inventory scan, but the cashier or manager still has to manually check the numbers against POS.
YesHandles the end-to-end close comparison across inventory, sales, payouts, POS data where supported, and cashier activity.
Employee theft or discounting
Retail shrink research commonly identifies employee theft and administrative errors as major parts of shrink, not only external theft. Source
NoCannot explain employee theft, discounting, cashier behavior, or POS mismatch.
YesDesigned to surface cashier, payout, sales, and inventory exceptions.
Activated tickets left accessible
Washington Lottery retailer guidance says activated tickets should never be left unattended on the counter and should be accessible to a customer only after purchase. Source
NoDoes not track activated books unless they are loaded onto the counter and included in the SmartCount workflow.
YesTracks and reports every activated book until it is sold out or returned.
Backstock access by too many people
Lottery retailer security guidance emphasizes securing inventory, limiting access, and tracking ticket ranges before and after shifts. Source
NoIf a pack is activated and never loaded into SmartCount, SmartCount may not see it.
YesGets activated-pack signals from the state lottery portal and can compare them against inventory movement.
Manual paperwork and math errors
Retail shrink analysis includes administrative and process errors as a meaningful part of shrink; lottery retailers also rely on accurate shift and sales records. Source
PartialReplaces much of the paper ticket-number sheet, but the owner still has to manually match SmartCount numbers with POS totals.
YesEliminates the sheet and matches numbers with available store/POS data to produce an accurate close report with less manual effort.
Payout, no-sale, and exception patterns
Loss-prevention best practices recommend exception-based review for unusual POS activity, voids, no-sales, discounts, and refund behavior. Source
NoNot a POS or cashier-exception system.
YesHelps review payout and cashier exceptions where store data is available.

Coverage Matrix

What catches which problem?

This is the fastest way to think about the difference. A spreadsheet, SmartCount, and LottoReco are not solving the same problem.

Problem
Spreadsheet
SmartCount
LottoReco
Pack removed from display but not sold
YesCan catch it if the sheet is complete and compared shift to shift.
NoIf the pack is skipped during scanning, SmartCount will not report it missing from the display.
YesFlags the exception when current reports do not line up with prior inventory.
After-close theft before the next day opens
NoDoes not block ticket validation.
YesCan block scanned tickets after End Day, which helps protect overnight inventory until the next selling day workflow.
YesHelps identify sold tickets and missing ticket ranges from opening stock, sales, activations, and inventory history.
Pack activated but never loaded in display
NoUsually not visible if it never reaches the sheet.
NoUsually not visible if it is not loaded into the SmartCount workflow.
YesGets the activated-pack signal from the state lottery portal and can flag when the pack does not appear in expected inventory movement.
Pack removed during the day and skipped during scan
PartialCan catch it only if the manual count is accurate.
NoIf the cashier skips the pack during scanning, SmartCount will not report that it is missing.
YesChecks the report against prior inventory, activations, sales, and returns.
POS sales or payout mismatch
PartialRequires manual POS and lottery report comparison.
NoNot the core purpose.
YesCompares sales and payouts with store data where supported.

Switching Workflow

Using LottoReco with a SmartCount store

If your store starts using California Lottery SmartCount, adjust the daily close around the printed SmartCount report.

1

Confirm SmartCount use

Tell LottoReco your California store is using SmartCount for Scratchers inventory.

2

Set the report routine

Print, photograph, and upload the SmartCount report through the LottoReco app.

3

Train the checklist

Make the scan, End Day, upload, and review steps part of close.

4

Review exceptions

Use LottoReco to see what matched and what needs follow-up.

FAQ

California Lottery SmartCount questions

What is California Lottery SmartCount?

SmartCount is a Scratchers inventory workflow that helps California Lottery retailers scan inventory, produce reports, and block scanned tickets after End Day.

Is SmartScan the same as SmartCount?

Many store operators use SmartScan or Smart Scan to describe the SmartCount scan workflow. This page uses SmartCount as the primary term.

Does SmartCount replace LottoReco?

No. SmartCount can reduce manual inventory counting. LottoReco helps with the broader reconciliation workflow around that report.

How does LottoReco support SmartCount stores?

Stores can upload a picture of the printed SmartCount report through the LottoReco app, then include that report in daily close and exception review.

Can stolen SmartCount tickets be cashed?

SmartCount can help block scanned tickets after End Day, but retailers must follow California Lottery theft reporting and ticket-blocking procedures immediately.

What does LottoReco check beyond SmartCount?

LottoReco helps compare SmartCount reports with sales, payouts, activations, returns, prior inventory, POS data where supported, and cashier activity.

Use SmartCount and LottoReco Together

SmartCount helps with Scratchers inventory scanning. LottoReco helps owners finish the daily reconciliation, payout review, POS matching, and accountability workflow around it.