(INDIANAPOLIS) – The private company that runs most of the Hoosier Lottery’s operations says the state lottery could rake in record revenue this year, thanks in part to big lottery jackpots.
IGT Indiana presented a financial report to the Hoosier Lottery Commission on Tuesday which shows that by late March it had sold $1 billion worth of tickets during the fiscal year 2019.
That had grown to $1.12 billion in ticket revenue as of April 30, and IGT Indiana expects that revenue will increase to a Hoosier Lottery record $1.33 billion before the fiscal year ends June 30, the Indianapolis Business Journal reported.
The higher-than-expected income means more revenue for the state, which after paying for prize payouts and operating expenses uses surplus revenue to lower residents’ automobile excise taxes, support state pension funds and finance other projects.
The Hoosier Lottery estimates the state’s take this fiscal year will be $309 million, which would be another record. Last year, the lottery returned a record $306 million to the state.
As of April 30, the lottery’s increased revenue seems driven by higher sales in big jackpot draw games, like Powerball, Hoosier Lotto and Mega Millions. Mega Millions revenue is nearly 73% higher than last year and 70% above what the lottery expected it to be this year.
Indiana saw Mega Millions ticket sales skyrocket in October when the jackpot reached $1.6 billion, making it the biggest lottery prize in U.S. history.
“That has really helped contribute to our increased revenues,” said Carrie Stroud, the Hoosier Lottery’s chief of staff.
Total sales for scratch-off tickets and non-jackpot draw games are also higher so far this year than the same 10-month period in the previous year.
The lottery’s higher sales could result in a “provider net income” — which is total revenue minus prizes paid out and game and provider expenses — of $323 million. That’s $23 million higher than IGT Indiana’s $300 million minimum threshold to avoid paying a penalty and 5.6% above what the lottery had budgeted for 2019.
The company’s 15-year contract outlines minimum net income amounts that IGT Indiana must hit in order to avoid paying a penalty, as well as incentive net income amounts that would trigger an incentive payment.
Last year, IGT Indiana received its first incentive bonus since contracting with the state in 2012.
Information from: Indianapolis Business Journal, http://www.ibj.com