The Kentucky Lottery today announced Fiscal Year 2012 sales of $823.5 million (including $55.7 million in free tickets). This breaks the old sales record established in FY09 of $810.5 million (1.6%), and shatters last year’s results by $51.2 million (6.6%).
These sales also led to record-breaking proceeds returned to the Commonwealth. A total of $216.4 million was earned for scholarship and grants programs funded by the Kentucky Lottery, breaking the old record set back in FY10 of $214.3 million (1%) and besting last year’s mark by $4.2 million (2%). Unclaimed prizes, which are directed by law to the KEES scholarship reserve fund, were $8.3 million versus $7.5 million in FY11.
Cash prizes paid to players were $459.1 million, up 8.7% from the $422.4 mark in FY11.
Other highlights of FY12 included:
- Record scratch-off ticket sales of $505.9 million (5.5% increase from last year).
- Record Mega Millions sales of $40.1 million (19.7% increase from last year.
- Record retailer commissions of $50.9 million (7.6% increase from last year).
At a meeting of the Kentucky Lottery Corporation’s (KLC’s) board of directors, Senior Vice President of Finance & Administration & CFO Howard Kline said improving economic conditions and changes to the lottery’s scratch-off ticket program helped generate a large part of the sales increase. “After a relatively slow start in the first half of the fiscal year, the transition of Powerball to a $2 game and the successful launch of the innovative 5 Card Cash game helped boost draw game sales to $317.6 million or 8.4%,” Kline said. Powerball sales increased $11.1 million (15.4%) over the previous year, and 5 Card Cash contributed $10.8 million in new sales.
Operating expenses for the year were $27.2 million, up $1.8 million from FY11. Kline attributed this to one time savings realized in FY11 through a new online gaming contract, along with capitalized expenses related to software development.
“It took a tremendous effort by our retail partners, our sales and marketing staff, and staff to break these records last year’” said KLC President and CEO Arch Gleason. “We do face a significant challenge this year as our sales goal is $853 million. Sales however look promising in the first few weeks of FY13, and I believe a variety of new initiatives and game enhancements will help us work to achieve our goal.”
During the meeting, the board approved a lease extension for the KLC’s Prestonsburg regional office along with rules and regulations for five scratch-off tickets and an amendment to the Powerball game rules.
The board also re-elected Keith Griffee as chairman. He has served in this role since March 2008, and has served on the board since July 2003. Griffee is Bullitt County market president for PBI Bank and a resident of Mt. Washington. June Hudson of Benton was elected to vice chair of the board. She is the first woman to ever hold this position. The Kentucky Department of Parks retiree has served since January 2009.
The next meeting of the KLC Board of Directors will be September 28th. The meeting will begin at 9:30 a.m. ET, and will be held at KLC headquarters at 1011 West Main Street, Louisville. Committee meetings will begin at 8:30 a.m. ET.