Overall lottery sales exceed budget expectations by $1.1m — sales of scratch-offs drive impressive gains


“The story we’ve shared with you over the past year continues to hold true,” said the Kentucky Lottery’s Vice President of Finance Rick Kelley in a meeting of the organization’s board of directors yesterday. “Our scratch-off product continues to post impressive gains. Mega Millions and Powerball – two of our most profitable products – continue to suffer due to the lack of sustained jackpot runs.”

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Kelley reported overall lottery sales from July through October were $310.3 million, which is $23.2 million (or 8.1%) more than last year and $1.1 million more than budget. Sales of instant tickets for the period were $194.4 million, a $16.3 million (or 9.2%) increase from last year and $5.9 million (or 3.1%) more than budget. He said Keno continues its strong performance at $18.6 million, up $4.4 (or 30.7%) million from last year and $170,000 more than budget. Draw game sales though continue to be stunted by the jackpot issue in the large multi-state games. Kelley said draw game sales were $97.3 million, which is $2.5 million more than last year yet $4.9 million less than budgeted.

“Powerball sales in Kentucky are actually up very slightly from last year, but are 13.8% below where they were budgeted to perform. Mega Millions is down 22.7% below budget as well,” said Kelley.

Year-to-date income before transfer of dividends was $75.8 million, which is $873,000 more than last year but $816,000 less than budgeted.

Kelley said players have benefitted in the past two months due to high-paying number combinations being drawn in the daily Pick 3 and Pick 4 games. “Pick 3 prize expense so far this year is $967,000 above what was anticipated, and Pick 4 prize expense had been $432,000 more than anticipated” he said. The trend continued in November, when a single Pick 4 drawing of the combination 1-2-3-4 paid out $1.4 million in prizes.

Results of a benchmark measurement study comparing Kentucky’s performance to 11 comparable state lotteries in the U.S were shared with the board. “Kentucky sold $899.1 million in tickets last year, as opposed to the average of $865.1 million in our benchmark states,” Kelley said. “In addition, while we returned $236.1 million to the Commonwealth, the average state returns in our benchmark states was $221.5 million.”

In other business, the board approved new or amended rules and regulations for eight scratch off games, eight Internet instant play games and three draw games.

The next meeting of the KLC’s board of directors will be January 22 at 9:30 a.m. EST will at the KLC headquarters at 1011 West Main Street in Louisville. Committee meetings will begin at 8:30 a.m. EST.

From the Kentucky Lottery


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