It is the fifth consecutive year that revenues have eclipsed the $5 billion mark. “Another net profit record is a proud achievement for the Lottery. We continue to perform at the highest levels even as we face mounting challenges in today’s retail environment,” said Treasurer Deb Goldberg, Chair of the Massachusetts State Lottery Commission. “This profit generates local aid, critical to every community across the Commonwealth.”
FOR IMMEDIATE RELEASE
CONTACT: Christian Teja Office: (781) 849-5600 Mobile: (781) 664-7168 This email address is being protected from spambots. You need JavaScript enabled to view it.
LOTTERY PRODUCES ESTIMATED $1.092 BILLION IN NET PROFIT FOR THE COMMONWEALTH IN FISCAL YEAR 2019, 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 23, 2019) – State Treasurer Deborah Goldberg announced today that the Massachusetts State Lottery produced an estimated $1.092 billion in net profit for the Commonwealth during the 2019 fiscal year that began July 1, 2018 and ended June 30, 2019.
This is the highest net profit total in the Lottery’s 48-year history, surpassing the previous record of $1.039 billion set in the 2017 fiscal year. Net profit for the 2018 fiscal year was $997 million, the third highest total. Lottery revenues rang in at an estimated record high of $5.499 billion, surpassing the previous record of $5.292 billion set last fiscal year.
It is the fifth consecutive year that revenues have eclipsed the $5 billion mark. “Another net profit record is a proud achievement for the Lottery. We continue to perform at the highest levels even as we face mounting challenges in today’s retail environment,” said Treasurer Deb Goldberg, Chair of the Massachusetts State Lottery Commission. “This profit generates local aid, critical to every community across the Commonwealth.”
While the FY 2019 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 mid-September.
The Lottery’s network of retailers earned an estimated $314.4 million in commissions and bonuses in FY 2019, also a record, surpassing the previous high of $303 million set in FY 2018. With approximately 7,500 retailers, that amounts to an average of over $41,000 in income for each of the Lottery’s retail partners.
Contributing to FY 2019’s record-setting revenue figure were jackpot-driven sales of Mega Millions, the continued growth of Keno, and the consistent performance of instant ticket products. Mega Millions sales increased 73.6 percent over FY 2018 to a total of $154.3 million. This growth was largely fueled by a sequence of drawings in the fall of 2018 that culminated in advertised jackpots of $1 billion and $1.6 billion. Keno sales exceeded $1 billion for the first time since the launch of the game in 1993.
With an estimated total of $1.055 billion, Keno sales were up 5.8 percent over last fiscal year. Sales of instant tickets increased 2.2 percent, ringing in at an estimated $3.673 billion, also an all-time mark. The Lottery set another record by paying out an estimated $3.987 billion in prizes in FY 2019. An estimated 72.5 percent of all revenue was returned to players in FY 2019. Prize payouts can fluctuate from year to year based on the schedule or rate at which players cash in their prizes. In FY 2019, Lottery players won 202 prizes valued at $1 million or more, including 26 prizes valued at $2 million or more. The Lottery’s administrative costs remained approximately 1.9 percent of overall revenues, the lowest of any U.S. lottery. Over the course of the 2019 fiscal year, the Lottery relocated its headquarters, converted to a new host system, and completed the process of replacing its 20-year old agent terminals, all on or ahead of schedule, and within budget.
“Setting records across the board, while simultaneously executing multiple major operational transitions, is a testament to the devotion of our team and the cooperation of our dedicated retail partners,” said Michael Sweeney, the Lottery’s Executive Director. “These accomplishments are also the result of the thoughtful guidance provided by the Treasury and our commissioners.”
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 $27 billion in net profit to the Commonwealth. For more information about the state Lottery, please visit www.masslottery.com.
###