Massachusetts Lottery rings in at $1 billion in net profit for state
State officials said the Massachusetts Lottery generated more than $1 billion in net profit for the sixth year in a row, but fell short of profit projections due to record jackpot payouts.
Massachusetts Treasurer Deborah Goldberg said Tuesday that the State Lottery produced $1.045 billion in net profit for the state in the last fiscal year that ended June 30.
The total profit was based on gaming revenue that came in at $5.904 billion, administrative costs that cut into that revenue by roughly 2.4% or $141.7 million, and distributed lottery winnings.
“Thanks to our retail partners, loyal customers, and the Lottery team, we are able to provide critical local aid for every community in Massachusetts,” Goldberg said in a statement. “With this week’s launch of online lottery, we will build on our success while supporting early childhood education and care, expanding the Lottery’s positive impact across the state.”
Net profit fell $5 million below Goldberg’s projection of $1.05 billion, and was $22 million less than the prior fiscal year.
The Lottery paid out 74.19% of its revenue to players as prizes, which it described Tuesday as a record amount for the 50-year state organization.
“For the sixth year in a row, we’re proud to deliver over $1 billion to our cities and towns thanks to our customers, employees, and statewide network of retail partners,” Mass Lottery Executive Director Mark William Bracken said in a statement. “Powerball and some of our in-state draw games helped boost profits as well as Keno reaching a new record in sales.”
Mass Lottery players won an estimated $4.379 billion, largely driven by two Powerball jackpots that exceeded $1 billion last fiscal year — compared to just one jackpot that hit the billion-dollar mark the prior fiscal year.
State Lottery players won 146 prizes valued at $1 million or more, between 136 scratch tickets and 10 Powerball prizes. The largest prize won last fiscal year was $25 million on the $25 million Mega Money scratch ticket that sells for $50, according to the Lottery.
Bracken told State House News Service that last year’s record prize payout percentage “clearly takes a cut into our net profit but is really good news for our players.”
Also affecting profit margins were a dip in scratch ticket sales, which typically represent two-thirds of lottery sales. Scratch ticket sales fell by 3.7%, or $145.6 million, totaling $3.808 billion, per State House News reporting.
The Lottery highlighted in its press statement that sales were up elsewhere, while only sharing the scratch ticket sales amount.
Draw game sales totaled $758.7 million, representing a 12.2% increase over the prior year’s $676.2 million. Keno set an all-time high with $1.288 billion in total sales, eclipsing the prior fiscal year’s then-record sales total of $1.285 billion, according to the Lottery.
The Lottery said its network of retailers earned $337.1 million in commissions and bonuses last fiscal year.
State officials said they are hoping to see a future boost in profits with the launch of Mass Lottery Online, featuring new and familiar games that registered players 21 and older can play on their phones, computer or tablet through the Lottery’s app and official website.
Bracken said, “We’re excited to have revenue already coming in from online sales and look forward to seeing those net profits support early childhood educational grants.”
This content is sourced from www.bostonherald.com and is shared for informational purposes only.
