Lottery Fiscal Year Proceeds Set All-Time Record at $260.3 Million
Mega Scratchers games and super-sized jackpots helped the Missouri Lottery set record proceeds during fiscal year 2006, coming in 19 percent higher than the last fiscal year transfers and 13 percent higher than the previous record $230.3 million set in fiscal year 2004. Today’s final monthly proceeds transfer to public education was $23,097,875, bringing the total proceeds transferred to Missouri’s public education during FY06 to $260.3 million. The June transfer is based on ticket sales in May.
"The Missouri Lottery has witnessed dramatic growth in the past 20 years, especially in the past four years," said Larry Jansen, executive director of the Missouri Lottery. "Lottery proceeds have gone from $80 million in fiscal year 1987 to $260.3 million in fiscal year 2006."
Jansen attributed much of the past year’s success to record Powerball jackpots and growth in Scratchers games sales.
"We introduced two ’mega’ Scratchers games during the past year, and together, they’ve added more than $1.7 million a week to our sales. These games have the highest payouts we’ve ever offered, so while the state is bringing in more proceeds, winners are taking home more than ever, too. It’s a win-win situation."
Jansen said that since the first "mega" Scratchers games was introduced in September 2005, proceeds each month have been more than $21 million.
In addition to Scratchers tickets, Jansen noted that the Powerball jackpot surpassed $300 million two times during fiscal year 2006; the first time the jackpot set a new record on Oct. 19, 2005, coming in at $340 million, and it broke that record on Feb. 18 when it reached $365 million. As a result of the record jackpot, the Lottery also experienced record sales in February of $94.1 million.
"We were also fortunate enough to award the largest jackpot won in Missouri during this past fiscal year," Jansen noted. "Thirteen state employees from the St. Louis area claimed a $224.2 million jackpot in April. That generated a tremendous amount of excitement for our games."
Jansen added that while the past fiscal year was phenomenal for Powerball, it will be hard to match during the next fiscal year.
Proceeds from Missouri Lottery ticket sales in fiscal year 2006 were used for a variety of public education programs including: the Foundation Program, the A+ Schools Program, special education excess costs, the Vocational Rehabilitation program, the Early-Grade Literacy program and capital improvements at several colleges and universities around the state. For a complete list of programs funded in FY06, visit the Lottery’s Web site at molottery.com.
From the start of the Lottery in January 1986 through fiscal year 1993, Lottery proceeds of $542,540,033 went to the state’s General Revenue Fund. In August 1992, Missouri voters approved an amendment to direct all Lottery proceeds to public education, and since July 1993, when the law change took effect, the Lottery has contributed more than $2.1 billion to the state’s public education system.
Each year, the proceeds are allocated by the governor and the state’s General Assembly during the annual appropriation process. These funds represent approximately 3.8 percent of the total annual funding required for Missouri’s public education system.
"In addition to record sales and profits, we also set a new record low - the lowest percentage of sales (5 percent) spent on operating costs in the agency’s 20-year history," Jansen added.
For each dollar spent on the Lottery, more than 95 cents goes back to the citizens of the state in one form or another. Approximately 61.6 cents is returned to players as prizes, 27.3 cents goes to the state’s public education programs, 6.1 cents pays for retailers’ commissions, incentives and bonuses, and 5 cents is used for administrative costs.
HISTORY OF LOTTERY PROCEEDS
FY88 $80,047,009.25 (+.05)
FY89 $93,102,306.37 (+16.3)
FY90 $75,000,000.00 (-19.4)
FY91 $76,179,083.01 (+1.6)
FY92 $66,082,246.00 (-13.3)
FY93 $72,129,289.00 (+9.2)
FY94 $110,573,071.00* (+53.3)
FY95 $125,169,977.37* (+13.2)
FY96 $132,311,303.00* (+5.7)
FY97 $134,201,860.00* (+1.4)
FY98 $147,134,560.00* (+9.6)
FY99 $150,578,471.00* (+2.3)
FY00 $155,819,955.00* (+3.5)
FY01 $156,918,454.00* (+.70)
FY02 $160,092,441.00* (+2)
FY03 $193,940,550.00* (+21.1)
FY04 $230,318,233.00* (+18.8)
FY05 $218,285,010.00* (-5.2)
FY06 $260,300,831.00** (+19.2)
Transfers to General Revenue - $542,540,033.63
Transfers to Education (FY94 - FY06) - $2,175,644,717**
* All proceeds sent to public education. All other years’ proceeds went to the General Revenue Fund.
** unaudited figures