Annual Report for Fiscal Year 2013

LOTTERY BREAKS SALES AND DIVIDEND RECORDS IN FISCAL YEAR 2013

Kentucky Lottery Corporation (KLC) sales for Fiscal Year 2013 were $846.6 million (including $35.8 million in free tickets). This breaks the old sales record established in FY12 of $823.5 million by 2.8%.

These sales also led to record-breaking proceeds returned to the Commonwealth. A total of $223.8 million was earned for scholarship and grants programs funded by the Kentucky Lottery, breaking the old record set last year of $216.4 million. This is a 3.4% increase. Unclaimed prizes, which are directed by law to the KEES scholarship reserve fund, were $9.2 million versus $8.3 million in FY12. In addition , the Commonwealth received $3.6 million in taxes withheld from prizes.

Cash prizes paid to players were $494.9 million, up from the $459.2 million mark in FY12.

Scratch-off ticket sales also rose to a record level of $522.2 million versus $505.9 million last year. Draw game sales rose to $324.4 million (their second-highest level in KLC history) from last year’s 317.6 million. Retailers also enjoyed record-breaking commissions of $52.2 million, up from FY12’s $50.9 million figure.

The lottery's biggest selling instant tickets were in the $5 price point, and $20 tickets saw the largest percentage sales jump with a 12.3% increase. The KLC revamped the entire scratch-off ticket program with a number of changes, including reducing the number of free tickets offered as prizes instead of a cash prize equal to the purchase price of the ticket, and reconfiguring some prize levels. As a result, sales of this product line rose to historic levels.

The increase in draw game sales was primarily driven by a record-breaking $590.5 million Powerball jackpot in May 2013.

Even though sales rose by more than $23 million, operating expenses for FY13 ($26.4 million) were actually $800,000 lower than the previous year.