Lottery sales & winner payouts

We sell state lottery & scratch offs as well as pay winners.  Technically we get reimbursed for the payouts, but it really ends up just being a carry forward until we owe the state, then we pay them a lesser amount.  However, this daily lottery payout amount needs to come off of our undeposited funds as we no longer have it to deposit.  How should I correctly set up a lottery payout account to accomplish this?  What other accounts should I set up/use in order to accomplish the accounting for the lottery?  The full sale (which we have to pay out at some point less a %) is included in our daily sales.  I was thinking I could leave that full amount then offset the payout to the state with COGS, thus reflecting in our P&L.  Is this the most efficient way?  Is there an easier way that includes all aspects plus the lack of cash due the payouts?  Thank you.