The Kentucky Lottery announced today in a board of directors meeting that sales for Fiscal Year 2016 were a record $997.3 million. This breaks the old sales record established in FY15 of $899.1 million by $98.2 million (10.9%). FY16 ended on June 30.
Those sales led to record-breaking profits for the Commonwealth. A total of $253 million was earned for the state, breaking last year’s record of $231.1 million by $21.9 million (9.5%). Lottery proceeds in Kentucky are used to fund college scholarship and grant programs. The lottery is the sole funding source for the KEES scholarship program, and also funds the need-based College Access Program and Kentucky Tuition Grants.
Scratch-off ticket sales continued to be the best-selling product in the lottery’s portfolio, finishing the year with a record-breaking $597.3 million in sales. This is $36.8 million (6.6%) more than the previous year.
Draw game sales however were key in the record-breaking performance. This category closed the year at $399.7 million in sales, which was $60.9 million (18%) more than the previous year. Keno showed solid performance, with sales rising to a record $65.9 million. This is $18.6 million (39.2%) more than the previous year. Pick 3 sales for the FY were up 6.3% to $139.6 million and Pick 4 sales were up 10.7% to $42.6 million, both new records for the games.
Not surprisingly, the largest percentage increase by game for the full year went to Powerball. This follows the world record-breaking $1.5 billion jackpot run the game saw in January. Sales for this game rose 45.2% from the previous year, finishing at $94.4 million ($29.4 million more than FY15).
The lottery’s Executive Vice President and CFO Howard Kline reported that Powerball alone was not the cause of the record-breaking year. “The $1.5 billion jackpot run absolutely helped us exceed the state’s estimates for the year, but even without this bump, we were on track to break our all-time sales record thanks to the solid performance in our other game categories,” said Kline. “We had lofty goals set for us this year, and we achieved them.”
Record sales in FY16 also led to record prizes paid to players of $620.6 million ($64.3 million or 11.6% more than last year), and record commissions to retailers of $62.6 million ($6.7 or 12% more than last year).
According to the Kentucky Higher Education Administration Authority (which administers Lottery-funded college scholarship and grant programs), from 1999 through 2015 the Kentucky Lottery has funded $2,497,431,181 in college scholarship and grant programs for 659,308 students.
Since inception, the Lottery has sold $17.4 billion in tickets, earning $4.6 billion for the Commonwealth. Winners have received $10.5 billion in prizes, and retailers have been paid $1.1 billion.
The board also approved the corporation’s operating budget for FY17. The budget includes sales of $1.031 billion (the first time the Kentucky Lottery would ever break the billion dollar mark), a 1.5% increase over FY16’s sales mark. This includes $662 million in sales of scratch-off tickets and $386 million from draw games.
Board approval was also granted for the FY17 retailer incentive, rules and regulations for ten
scratch-off tickets, amended Powerball and Mega Millions rules, and six Instant Play games.
The former commissioner of the Kentucky Department of Parks June Hudson of Benton was re-elected board chair. She has served in that position since March 2015. Louisville attorney Mark F. Sommer was elected vice chair.
The meeting was the first held since the passing of the lottery’s long-time President and CEO Arch Gleason. The lottery’s Sr. Vice President and Corporate Counsel Mary Harville reported personnel from the governor’s office requested lottery staff coordinate the search for a new president and CEO, and that a request for proposals (RFP) for an executive search firm is being prepared. Selection of the firm should take four to five weeks after the RFP is issued. By statute, the governor appoints the lottery’s president and CEO, and is subject to confirmation by the board.
The next meeting of the KLC’s board of directors will be Sept. 20. The meeting will begin at 9:30 a.m. EST, and will be held at the KLC headquarters at 1011 West Main Street in Louisville. Committee meetings will begin at 8:30 a.m. EST.
