Lottery Generates More Than $1B for Senior Programs, Achieves Record Sales and Profits

MIDDLETOWN – The 2011-12 fiscal year was the Pennsylvania Lottery’s most successful year in its 41-year history, as the Lottery set new records for annual sales and profits, generating more than $1 billion for programs benefiting older Pennsylvanians.

Fiscal year 2011-12 Lottery sales totaled $3.48 billion, which was $273 million, or 8.5 percent, above the previous year and prior all-time sales record.

Net revenue to the Lottery Fund for fiscal year 2011-12 totaled $1.06 billion, which was $100 million, or 10.4 percent, more than the previous year and $85 million, or 8.7 percent, more than the previous profit record achieved in fiscal year 2005-06.

“The growth in sales of instant tickets, continued efforts to expand Lottery’s retailer base, growth in the multi-state games Powerball and Mega Millions as well as many other variables all played a role in the Lottery’s tremendous success this year,” said Lottery Executive Director Todd Rucci.

The Lottery ended fiscal year 2011-12 with more than 9,100 retailers, a record for the modern-era Lottery that simultaneously sells terminal-based products and dozens of instant games.  Lottery retailers, many of them family-owned small businesses, earned $183.9 million in commissions in fiscal year 2011-12.

“The funds generated by the Pennsylvania Lottery this fiscal year helped support programs that provide services such as Older Adult Protective Services, in-home personal care, free transportation, meals, tax rebates and prescription drug assistance to thousands of older Pennsylvanians aimed to protect their independence, preserve their health and improve the quality of their life,” said Secretary of Aging Brian Duke. “We are grateful for the support and commitment we receive from the Lottery.”

As an example of Lottery’s renewed focus on the programs that benefit older Pennsylvanians, Rucci pointed to the advertising campaign Lottery launched this year with the goal of raising awareness of the specific programs that Lottery funds.

Instant games sales for the fiscal year totaled $2.13 billion, which was $212.5 million, or 11.1 percent, higher than the previous year. Instant games accounted for 61.3 percent of fiscal year 2011-12 sales, as compared to 59.9 percent in 2010-11.

Sales for terminal-based games – including The Daily Number, Big 4, Quinto, Treasure Hunt, Cash 5, Match 6, Millionaire Raffle, Powerball and Mega Millions – totaled $1.35 billion for the fiscal year, which was $60.5 million, or 4.7 percent, more than the previous year.

Powerball sales of $277.7 million were $63.5 million, or 29.7 percent, more than last year, indicating enhancements made to the game this year to offer larger jackpots, better odds and more million-dollar prizes were welcomed by players.

Mega Millions sales of $151.2 million were $25 million, or 19.8 percent, more than last year, illustrating the significant sales impact of a world-record jackpot in March and suggesting Mega Millions continues to gain popularity with players.

In fiscal year 2011-12, the Lottery’s administrative costs decreased from 2.3 percent of total sales to 2.1 percent through a new contract with the independent drawing auditor, reductions in printing costs and fleet management changes.

“We are committed to improving efficiencies to maximize the dollars for programs that benefit older Pennsylvanians, we embrace our unique mission and we are working to push that profit number even higher in the future,” said Rucci.

“This tremendous success is welcome good news for programs benefiting older Pennsylvanians, and it sets the bar even higher for potential bidders on a Lottery private management agreement.  While this growth is not unexpected, it is difficult to predict,” Rucci added. “A private management agreement could help mitigate this unpredictability and provide security and stability in budgeting for years to come.”

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