Hoosier Lottery says profit up 16 percent from year ago

INDIANAPOLIS (AP) - The Hoosier Lottery says it is turning over 16 percent more in profits to state government than a year ago.

Lottery officials project a $281 million profit during the 2016 budget year that ended June 30 after record sales for scratch-off tickets and draw games because of large Powerball and Mega Millions jackpots.

The profit will allow the lottery's private management company to avoid a penalty for a third straight year. IGT Indiana missed both its 2014 and 2015 minimum income targets, so last year the Hoosier Lottery Commission restructured the contract and lowered the $365 million penalty-triggering minimum to $270 million.

"We are extremely pleased with these results and the success of the Lottery under our amended service agreement with IGT Indiana," said Fort Wayne businessman Bill Zielke, chairman of the commission. "This public/private model for the Hoosier Lottery is serving our state well and helping us fulfill our mission to provide important funds for the State of Indiana."

Sarah Taylor, executive director of the Hoosier Lottery, said the commission will give $60 million for teacher and public safety pension funds and reduced auto excise taxes.

"All Hoosiers will benefit from this very successful year for the Hoosier Lottery," Taylor said.

Lottery ticket sales totaled $1.2 billion. Lottery winners received more than $772 million in prize payments, and more than 4,500 retail partners earned $82 million in commissions.

IGT's new minimum goal was $270 million with an extra incentive goal of $290 million for fiscal year 2016. The minimum goal is $290 million with an incentive goal at $295 million in fiscal year 2017.