Massachusetts lottery profits down 8 percent

Apr 25, 2018, 8:41 am (7 comments)

Massachusetts Lottery

Even with sales up more than 3 percent through nine months of the fiscal year, the Massachusetts Lottery has seen an almost 8 percent drop in profits so far this year, the executive director reported Tuesday.

The Lottery has turned a profit of roughly $744.3 million since fiscal year 2018 began in July, a drop from the approximately $807.8 million the agency counted as profit through the same time period the previous fiscal year, Executive Director Michael Sweeney told the Lottery Commission on Tuesday, according to a copy of his monthly report.

Players have bought just shy of $4 billion worth of Lottery products in since last July, an increase of $123.7 million or roughly 3.2 percent over the same nine months in fiscal 2017, Sweeney said. Sweeney reported the Lottery's prize payout rate — the percentage of revenue that is returned to gamblers as winnings — through nine months is 73.79 percent, compared to a rate of 71.61 percent during the same period in fiscal 2017.

Lottery sales in March were up $50.6 million or 12.8 percent over last March thanks to 271 percent growth in Mega Millions sales and 106 percent growth in Powerball sales. Still, estimated profit in March decreased by $5.1 million from last year.

Sweeney's report said a "high rate of cashing, including over $45 million in instant ticket grand prize claims during March" and a prize payout percentage of 77.51 last month contributed to the decline in profit. After raking in a record $1.035 billion in fiscal 2017, annual Lottery profits are currently projected at $968 million for this fiscal year and $965 million in fiscal year 2019, Treasurer Deborah Goldberg has told the House and Senate Ways and Means committees.

State House News Service

Comments

music*'s avatarmusic*

This is surprising news from the Massachusetts Lottery. I believe that this State is number one in lottery sales. They love their lottery!

 I would be satisfied with a $968 million annual Lottery profit for this fiscal year. Projected.

Stretch

Coin Toss's avatarCoin Toss

From the OP;

The Lottery has turned a profit of roughly $744.3 million since fiscal year 2018 began in July, a drop from the approximately $807.8 million the agency counted as profit through the same time period the previous fiscal year, 

Pure corporate greed. They still made $744.3 million profit

Bang Head

DELotteryPlyr's avatarDELotteryPlyr

Quote: Originally posted by Coin Toss on Apr 26, 2018

From the OP;

The Lottery has turned a profit of roughly $744.3 million since fiscal year 2018 began in July, a drop from the approximately $807.8 million the agency counted as profit through the same time period the previous fiscal year, 

Pure corporate greed. They still made $744.3 million profit

Bang Head

On top of that it appears that the PLAYERS are getting paid more THIS year than last year, which appears to account for the drop in 'profit' 

"the percentage of revenue that is returned to gamblers as winnings — through nine months is 73.79 percent, compared to a rate of 71.61 percent during the same period in fiscal 2017."

So the real story is 'Massachusetts players winnings up'

Coin Toss's avatarCoin Toss

When I see articles like this they make me think that those running the show, despite making $744.3 million profit kvetch about the profit being down 8% are upset about bonuses. 

I remember one year GM said they couldn't put anything into employees profit sharing but yet those at the top got very healthy bonuses.

Bleudog101

Quote: Originally posted by music* on Apr 25, 2018

This is surprising news from the Massachusetts Lottery. I believe that this State is number one in lottery sales. They love their lottery!

 I would be satisfied with a $968 million annual Lottery profit for this fiscal year. Projected.

Stretch

Read somewhere that they are #1 in sales.

They were debating allowing folks to buy some tickets on-line and think that reached a dead end.  IMO with millennial and newer lottery players that is the way they prefer to play given the option.

maximumfun's avatarmaximumfun

Maybe this is their golden number... mayhap Mass has finally hit saturation.  There has to be a point where it is just not possible to make anymore profit on this.  Sounds like a solid business model with the total profit this year... even if it IS down from projected amounts.

Bleudog101

Just saw about their new $30 ticket...The Fastest way to $1 million.  122 winners and second chance adds four more million prizes.  WTG Massachusetts State Lottery!!

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