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Kansas Lottery celebrates silver anniversary with record sales year

In a year already marked with much celebration, its 25th anniversary year, the Kansas Lottery has achieved a new record for sales. Sales of Lottery products in Fiscal Year 2012, which began July 1, 2011, and ended June 30, 2012, were nearly $244 million (unaudited). That’s up more than 4.6 percent from the previous year’s sales.

“One of the main goals I set for myself and the Lottery in my first full year as Executive Director was to surpass sales records and transfers from previous years and make the largest contribution to the State of Kansas in this agency’s history,” said Kansas Lottery Executive Director Dennis Wilson. “The dedicated staff of the Lottery took on that challenge wholeheartedly and together we achieved it.”

The Lottery will transfer $72 million to the State in FY12, the highest transfer in a single year since the Lottery started selling tickets in 1987 – $2 million more to the State than the previous fiscal year when the transfer was $70 million. Prizes paid also hit a new record mark at $137.5 million, up from $132.3 million last year.

“The numbers show increases in instant games and pull tabs. Both played an important role in our success this year. Another factor was the effort of our sales staff to find more selling opportunities within our base of retailers and re-focus on merchandising and training. Additionally, our marketing staff did a great job to promoting the enhanced Powerball game and exciting second-chance prize drawings,” said Wilson.

Above all, Wilson points to the success of the world record-breaking $656 million Mega Millions jackpot in March. That record-shattering amount was the result of unprecedented sales in all jurisdictions where Mega Millions is played, and Kansas was no exception. The jackpot drove Mega Millions sales in Kansas to $15.6 million in FY12, up an astounding $4.3 million from last year. Kansas sold one of three jackpot-winning tickets and the Lottery introduced Kansas’ largest-ever jackpot winner.

Another bright spot for the year was the Lottery’s Veterans Benefit games. Profits from the sale of Veterans Benefit instant games ended the fiscal year with the second highest total ever, more than $1.3 million, up from $755,687 in FY11. Sales from Veterans Benefit tickets provide direct funding for Kansas Veterans’ programs and Kansas National Guard scholarships.

This recently ended fiscal year also saw the opening of two additional casinos with state-owned gaming to join Boot Hill Casino already open in Dodge City. Kansas Star Casino in Mulvane and Hollywood Casino at Kansas Speedway in Kansas City, Kan., combined with Boot Hill to transfer $43.4 million to the Expanded Lottery Act Revenues Fund – another record for the Kansas Lottery. The Problem Gambling and Addictions Grant Fund and local governments will each receive records amounts also, with transfers of $3.9 and $5.9 million, respectively.

Where does the money go?

Traditional lottery revenue goes into the State Gaming Revenues Fund. On a yearly basis, the first $50 million is divided by a formula which first transfers $80,000 to the Problem Gambling and Addictions Grant Fund. Then 85 percent of the balance is transferred to the Economic Development Initiatives Fund, 10 percent to the Correctional Institutions Building Fund, and 5 percent to the Juvenile Detention Facilities Fund. Any receipts in excess of $50 million must be transferred to the State General Fund.

The 2007 Kansas Expanded Lottery Act created the Expanded Lottery Act Revenues Fund. The state’s share of revenue from state-owned and -operated casino gaming is transferred from the ELARF for purposes of reduction of state debt, state infrastructure improvements and reduction of local ad valorem tax, and/or for such other purposes as directed by the Kansas Legislature.

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Posted by on Aug 2 2012. Filed under County News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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