Massachusetts Lottery Produces Estimated $1.105 Billion in Net Profit in FY 2021

in Lottery

LOTTERY PRODUCES ESTIMATED $1.105 BILLION IN NET PROFIT FOR THE COMMONWEALTH IN FISCAL YEAR 2021, ESTABLISHING ALL-TIME HIGH Record-setting revenues result in largest commissions and bonuses for retailers and all-time prize payout for players

BOSTON, MA (July 27, 2021) – State Treasurer Deborah B. Goldberg announced today that the Massachusetts State Lottery produced an estimated $1.105 billion in net profit for the Commonwealth during the 2021 fiscal year that began July 1, 2020 and ended June 30, 2021.

This is the highest net profit total in the Lottery’s 50-year history, surpassing the previous record of $1.104 billion set in the 2019 fiscal year. Lottery revenues rang in at an estimated record high of $5.827 billion, topping the previous record of $5.509 billion set in fiscal year 2019. It is the seventh consecutive year that revenues have eclipsed the $5 billion mark.

"Despite the pandemic, this year the Lottery experienced record setting sales,” said State Treasurer Deborah B. Goldberg, Chair of the Massachusetts State Lottery Commission. “Thanks to our lottery team, retail partners and particularly our customers, we will again be able to deliver critical resources to every community in the state.” In fiscal year 2020, which was significantly impacted by the COVID-19 pandemic, Lottery net profit totaled $986.9 million, with total revenues of $5.258 billion.

“I greatly appreciate the collective efforts made by Lottery team members, our retail partners and our customers to maintain safe environments at our claim centers and retail locations under unique circumstances,” said Michael Sweeney, the Lottery’s Executive Director. “As a result of this cooperation, and with the guidance of Treasurer Goldberg and our Commissioners, the Lottery proved to be a safe form of entertainment and an important source of revenue for small businesses while contributing a record amount of support to cities and towns across the Commonwealth.”

While the FY 2021 figures have not been formally audited, the Lottery does not expect them to change substantially once that annual review process is complete. Lottery officials anticipate completing the finalized financial statement of operations by the end of September. The Lottery’s network of retailers earned an estimated $333.3 million in commissions and bonuses in FY 2021, also a record, surpassing the previous high of $314.5 million set in FY 2019.

Instant ticket sales exceeded $4 billion for the first time ever, besting the previous record of $3.673 billion set in FY 2019. At $4.030 billion, instant ticket sales increased 10.5 percent over last fiscal year’s total of $3.646 billion. Even as restaurants and bars remained closed for full service much of the fiscal year, Keno also established an all-time high with $1.057 billion in total sales, just ahead of the $1.055 billion registered in fiscal year 2019 and 8 percent higher than last fiscal year’s mark of $979 million.

Sales of Mega Millions and Powerball increased by a combined total of over $60 million, largely fueled by a sequence of drawings that culminated in January with advertised jackpots of $1 billion and $730 million, respectively.

The Lottery set another record by paying out an estimated $4.283 billion in prizes in FY 2021, surpassing the previous high of $3.987 billion paid out in FY 2019. An estimated 73.5 percent of all revenue was returned to players in FY 2021.

Prize payouts can fluctuate from year to year based on the schedule or rate at which players cash in their prizes. In FY 2021, Lottery players won 208 prizes valued at $1 million or more, including 38 prizes valued at $2 million or more.

The Lottery’s administrative costs were less than two percent of overall revenues. Over the course of the 2021 fiscal year, the Lottery relocated its Western Massachusetts claim center from Springfield to West Springfield and prepared for the move of its North Shore regional office from Woburn to Lawrence, which occurred earlier this month.

Last fall, the Lottery added a remote ticket scanning feature to its mobile app, allowing customers to scan tickets to see if they are winners.

Over 32,500 users have registered to use this feature and over 6.1 million tickets have been scanned.

In May, the Lottery successfully processed its first remote ticket cashing transaction through its mobile app, a significant step in the introduction of digital technology that will provide multiple benefits to customers as well as the environment, reducing trips to Lottery claim centers and cutting down on printing of paper checks.

The Massachusetts State Lottery was created in 1972 to generate local aid revenues for the Commonwealth’s cities and towns. Since its inception, the Lottery has returned more than $29 billion in net profit to the Commonwealth. For more information about the Mass Lottery, please visit www.masslottery.com.

###