Annual Report for Fiscal Year 2012
LOTTERY PROCEEDS IN KENTUCKY HAVE NOW PROVIDED MORE THAN $1,800,000,000 IN COLLEGE SCHOLARSHIPS AND GRANTS
After a repositioning of some of our key products – and a tremendous amount of work by our outstanding team – the KLC has reached record sales heights once again in Fiscal Year 2012.
Lottery sales in Kentucky for the year were $823.5 million (including $55.7 million in free tickets). This breaks the old sales record established in FY 09 of $810.5 million by 1.6% and shatters last year’s results by $51.2 million or 6.6%.
We accomplished this feat in a couple of ways. Our scratch-off ticket program helped lead the charge, as we saw record sales of these games of $505.9 million, a 5.5% increase from last year. The transition of Powerball to a $2 game and the successful launch of the innovative 5 Card Cash game helped boost online sales that had lagged earlier in the year.
And these record sales led to record proceeds to the Commonwealth. A total of $216.4 million was earned for scholarship, grant and other higher education programs funded by the Kentucky Lottery. This breaks the old record set back in FY10 of $214.3 million or 1% and beats last year’s mark by $4.2 million or 2%.
Moving forward, we need to realize an approximate 4.3% increase in sales next year to meet the proceeds amount expected by the Commonwealth. We are excited about several key initiatives on tap for FY13 to help us meet this ambitious goal – our new Points for Prizes program, major changes in the free instant ticket initiatives, elimination of our Final Top Prize program, and a change in the way drawings are delivered to players should result in either increased sales or increased savings.In the midst of all this, college tuition continues to rise to record levels. This makes our work to provide scholarships and grants even more important. Tens of thousands of Kentucky students are directly counting on us to help them go to college, and we must meet the challenge of providing them with needed resources to pursue their degrees.