Pennsylvania Lottery Sets Record Revenue as Sales Reach $4.5 Billion
The Pennsylvania Lottery has announced the figures for the most recent fiscal year, revealing the company generated sales of over $4.5 billion in the 12 months ending on June 30, with a net profit reaching $1.14 billion. This number represents an increase of 7.2% when compared to the previous fiscal period.
Profit went up by $49.6 million from 2017-18, and an additional $20 million from the record-breaking 2015-2016.
A Record-Breaking Fiscal Period
According to the latest numbers, the fiscal 2018-2019 set a new record when it comes to both sales and profit.
The recently-posted report revealed that scratch-off tickets accounted for more than 60% of sales during fiscal 2018-2019, improving by 6% to yet another record of $2.9 billion. Sales of draw tickets also improved, jumping by 8.7% to around $1.4 billion. An increase of nearly 20% in multi-state draws such as Powerball and MegaMillions was cited as the main driving force behind this improvement.
It was a fantastic first full year for the new online lottery games, which recorded sales of $381 million, with the Lottery drawing profits of $31.3 million. The brand-new set of “monitor games”, whose list includes Keno and the Xpress Sports virtual games, generated revenue of $46.7 million, along with nearly $10 million in profit.
All seven land-based casinos currently operating in Pennsylvania were strongly against the launch of the online lottery products, even before they were introduced in May last year. The casinos said these games resembled online slots too much and even filed a lawsuit intended to stop the games from being launched. The lawsuit was struck down last month, as the court decided the casino didn’t provide sufficient evidenced that these games were causing any real harm.
Market Continues to Grow
Only a few state lotteries across the U.S. have so far made online sales available in any form. One of them, the Kentucky Lottery, whose online draw tickets and instant-win games hit the market back in 2016, has recently revealed its online lottery sales reached $26.8 million in the last fiscal year, significantly improving when compared to $10.2 million generated during the previous fiscal period.
At the same time, the Kentucky Lottery Corporation’s overall sales increased by 8.3% to a record-breaking sum of $1.13 billion, which in turn lead to a record profit of $272.7 million. So much for the whole “online will destroy retail sales” theory!
Commenting on the latest results, Drew Svitko, the executive director of the Pennsylvania Lottery, said this was the eighth consecutive year that at least $1 billion was generated to benefit older Pennsylvanians, as the Keystone State lottery was the only one in the U.S. that used its proceeds to benefit seniors. He added they were thrilled that the new and exciting games that had been authorized … were proving to be a tremendous success.
We can expect more from Pennsylvania in the coming period, as its gaming industry is now the second-richest market in the U.S., with only Nevada being the richer one.