Indiana Lottery earns a profit despite decrease in sales
INDIANAPOLIS (AP) - Financial results show that the Indiana lottery's private operator still generated income for the state despite a slight dip in revenue.
Financial results presented to the State Lottery Commission show residents spent $1.2 billion on lottery tickets during 2017's budget year, The (Northwest Indiana) Times reported . That's a nearly $7 million decrease from 2016.
However, a reduction in game and provider expenses has led lottery operator IGT Indiana to produce nearly $294 million in net income. The provider needed to meet an income of more than $290 million in order to avoid a shortfall penalty. It just missed a $295 million goal that would've earned an incentive payment.
The state will receive almost $290 million of the funds, an increase of nearly $8 million when compared to last year.
"Through innovation, cost savings and hard work, our team was successful in making 2017 another record year for the Hoosier Lottery," said Sarah Taylor, the lottery's executive director.
The report found that Powerball sales dropped 25 percent, but new scratch-off ticket sales were able to make up for the decrease. Last year's Powerball had a record $1.6 billion jackpot.
"Meeting our goal of increasing revenue to the state was a challenge following the extraordinary Powerball jackpot," Taylor said.
The report said scratch-off ticket sales accounted for 75 percent of lottery revenue. The Powerball, MegaMillions and Hoosier Lotto accounted for 15 percent of revenue while other daily and instant draw games brought in 10 percent.
The state uses lottery profits to fund an annual vehicle excise tax credit and state building projects as well as to support teacher, police and firefighter pensions.
The lottery operator must generate $300 million in net income for budget year 2018 in order to avoid a shortfall penalty. The lottery plans to increase revenue by focusing on scratch ticket sales.
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Information from: The Times, http://www.nwitimes.com