Lottery Profits Continue Ahead of Last Year

Year-to-date sales of Kentucky Lottery tickets are above the previous fiscal year, but slightly below budgeted amounts. This was announced during a meeting of the corporation’s board of directors yesterday.

$161.1 million in tickets were sold in July and August, which is $8 million more (5.2%) than the previous year but $2.2 million (1.4%) lower than budgeted.

This was due in part to some softening in scratch-off ticket sales, which finished the period with $93 million in sales. This is $4 million (4.1%) less that the same time in the previous year and $5.7 million (5.8%) less than budgeted. According to Vice President of Finance and Administration Rick Kelley, “Instant sales for the first quarter of most fiscal year are traditionally soft. There’s a seasonality to our business, and we’re optimistic this category will trend upwards as the fiscal year progresses.”

However, due to large Powerball and Mega Millions jackpots during the same period, income before transfer of dividends YTD is above the previous fiscal year’s amount and budget. This number was $43.1 million for the two month period, which is $5.4 million (14.4%) more than the same period in FY16 and $3.3 million (8.3%) more than budgeted. “The large Powerball and Mega Millions jackpots, which are two of our most profitable games, along with effectively managing expenses helped us exceed budgeted net income for the period,” said the lottery’s Vice President and Corporate Controller Maggie Garrison.

The Oliver Group, a Louisville-based search firm, has been retained to conduct a nationwide search for the lottery’s next president and CEO. Long-time president and CEO Arch Gleason passed away in July. The search is to begin shortly, and the average search for such a position typically takes 90 to 120 days.

Board chair June Hudson announced her resignation from the board due to relocation. This ends her eight years of service to the organization, where Hudson was elected chair in March 2015, and was the first woman in the history of the Kentucky Lottery to hold the position.

In other business, the board approved:

  • Naming the board room at Lottery headquarters as the Arch Gleason Board Room;
  • A contract with ICF Olson for player communication solutions and related services;
  • A contract with Bandy Carroll Hellige for traditional media creative production, and a contract with The Buntin Group for digital media creative, production, media planning and buying;
  • A contract amendment with Smartplay International for random number generator systems and related services, and;
  • Rules and regulations for seven scratch-off tickets and four instant play games, along with amended draw game rules for Powerball, Mega Millions, KY Cash Ball and Lucky for Life.

The next meeting of the KLC’s board of directors will be December 2nd. The meeting will begin at 9:30 AM EST, and will be held at the KLC headquarters at 1011 West Main Street in Louisville. Committee meetings will begin at 8:30 AM EST.

 

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