ST. PAUL, Minn. (AP) - Minnesota's state lottery director has resigned amid questions about his expenses.

Ed Van Petten told sources he resigned Friday. His abrupt exit follows the release of a report showing Van Petten was reimbursed for more than $7,000 after he and his staff stayed at his personal timeshare units during conferences in three cities.

Van Petten says that arrangement saved public money but conceded it may have violated state policies governing employee expenses. He says he offered to resign to save Gov. Mark Dayton's administration potential embarrassment.

Jaime Tincher, chief of staff to Gov. Dayton, confirmed the governor accepted the resignation. The state will immediately search for a replacement.