Home » Kentucky Lottery shatters sales, dividend records in FY 2012

Kentucky Lottery shatters sales, dividend records in FY 2012

LOUISVILLE, Ky. (Aug. 6, 2012) — The Kentucky Lottery announced last week that its Fiscal Year 2012 sales of $823.5 million — including $55.7 million in free tickets — breaks the old sales record established in FY09 of $810.5 million and shatters last year’s results by $51.2 million.

These sales also led to record-breaking proceeds returned to Kentucky, according to a press release from the organization. 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 and besting last year’s mark by $4.2 million. 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 percent from the $422.4 mark in FY11.

Other highlights of FY12 included:

— Record scratch-off ticket sales of $505.9 million, a 5.5 percent increase from last year.

— Record Mega Millions sales of $40.1 million, a 19.7 percent increase from last year.

— Record retailer commissions of $50.9 million, a 7.6 percent increase from last year.

Improving economic conditions and changes to the lottery’s scratch-off ticket program helped generate a large part of the sales increase, said CFO Howard Kline, who also is senior vice president of finance and adminstration.

“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 percent,” he said.

Powerball sales increased $11.1 million 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.”