June 20, 2008
Missouri Lottery Proceeds Set Record at $265 Million
New Mega Scratchers games and strong Club Keno and Powerball sales contributed to record Missouri Lottery proceeds of more than $265 million during fiscal year 2008. The 2008 proceeds are 1.8 percent higher than the previous record of $260.3 million, set in fiscal year 2006 and 2 percent higher than the last fiscal year’s transfers. Today’s final monthly proceeds transfer to public education was $21,322,592, bringing the total proceeds transferred to Missouri’s public education during FY08 to $265,051,179. The June transfer is based on ticket sales in May.
"Sales and proceeds increased this year, but it is getting harder and harder to come up with new ways of growing sales," said Larry Jansen, executive director of the Missouri Lottery. "Scratchers are the main reason we are up, but it really is a combination of game sales increases that helped us exceed our proceeds goal this fiscal year.”
Jansen noted that March was the highest sales month in the Lottery’s 22-year history, topping $96.8 million. That record was attributed to a combination of two factors: higher price-point Scratchers games, including the introduction of the first $20 Scratchers ticket; and strong Powerball sales from the $276 million jackpot on March 15.
“Scratchers sales and Powerball sales individually did not set any records in March,” said Jansen. “However, those two products combined were strong enough to set a monthly record.”
Jansen added that the Lottery is not much different than other businesses that are experiencing sluggish sales.
"Like a lot of businesses that sell their products in grocery and convenience stores, we are competing with higher gas and food prices and a stagnant economy,” Jansen noted. “Our retailers tell us that high gas prices are significantly impacting their in-store sales, including Lottery tickets.
“We are very grateful to our retail partners and our Lottery employees,” Jansen added. “None of this would be possible without their hard work and dedication.”
Proceeds from Missouri Lottery ticket sales in fiscal year 2008 were used for a variety of public education programs including: the Foundation Program, the A+ Schools Program, Special Education Excess Costs, the Virtual Schools program, Future Minority Teacher Scholarships and funding for several public higher education locations. For a complete list of programs funded in FY08, 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 $2.7 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 4 percent of the total annual funding required for Missouri’s public education system.
For each dollar spent on the Lottery, more than 96 cents goes back to the citizens of the state in one form or another. Approximately 63 cents is returned to players as prizes, 27.1 cents goes to the state’s public education programs, 6.1 cents pays for retailers’ commissions, incentives and bonuses, and 3.8 cents is used for administrative costs.
HISTORY OF LOTTERY PROCEEDS
| FY87 $80,000,100.00
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)
FY07 $259,737,970.00* (-.2)
FY08 $265,051,179.00** (+2)
Transfers to General Revenue - $542,540,033.63
Transfers to Education (FY94 - FY08) - $2,700,433,865.37
* All proceeds sent to public education. All other years’ proceeds went to the General Revenue Fund.
** unaudited figures