A system and associated method are provided for dispensing lottery tickets at retail establishments. A lottery ticket terminal is in communication with a retail POS register and accepts a request for purchase of a particular lottery ticket selected from a plurality of different lottery tickets. A dispenser array is in communication with the terminal and includes a plurality of separate bins having a different respective lottery tickets stored. The lottery tickets have a machine readable code printed thereon and each bin includes a scanner disposed to read the code as the tickets are dispensed from the bin by an electronic drive mechanism. The lottery ticket terminal transmits a purchase signal for dispensing a particular lottery ticket that is routed to the respective bin containing the particular lottery ticket. The bin transmits a signal that is routed to a central lottery server for each lottery ticket dispensed from the bin, the signal identifying the lottery ticket from the scanned code.