Annual Report for Fiscal Year 2014
LOTTERY BREAKS SALES AND DIVIDEND RECORDS IN FISCAL YEAR 2014
We’re pleased to report FY14 proved to be another record-breaker in Kentucky Lottery history.For 16 out of the past 21 years, we've broken sales records. We've also broken dividend transfer records in 16 years out of the past 21. While dividends may not have been quite where we wanted them for FY14, we continue to work toward sales and dividend improvement. That's what the Commonwealth expects from us, and that's what college students receiving our scholarship and grant funds expect from us.
Sales for the period were $858.8 million (including $15.6 million in free tickets). This breaks the old sales record established in FY13 of $846.6 million by 1.4%.
Those sales led to record-breaking profits returned to the Commonwealth. A total of $226.1 million was earned for the college scholarship and grant programs funded by the Kentucky Lottery, breaking the old record of $223.8 million. We paid record retailer commissions of $52.8 million last year.
And our players benefited as well, for the first time ever winning over a half billion dollars in a single fiscal year. FY14 saw $523.8 million in prizes awarded.
All of this was accomplished with spending only 4.9% of sales towards our operating costs, a remarkable number for an organization with over $850 million in annual sales.
However, even in light of this record-breaking performance, we were $4.5 million below what was budgeted by the Commonwealth for FY14 dividends. We've started FY15 by taking steps to improve our sales performance. Changes have been made to our scratch-off program which we feel will bolster sales. We also continue to recruit new Keno retailers with the focus being on expanding sales of the game.