Kentucky Lottery announces four per cent sales drop
FRANKFORT, KY – The Kentucky Lottery Corporation announced recently that the state wide ticket sales had fallen four per cent in the first half of the fiscal year, beginning July 31st 2010. The main factors in the sales drop were a high unemployment rate and a lack of big jackpots.
The decreased ticket sales were also below the sales estimate that was included in the current fiscal-year budget approved by the Kentucky Lottery Corp. board last spring. That has prompted lottery officials to lower the predicted dividend to be paid into the state treasury through next June 30.
The Kentucky Lottery now estimates that the dividend that will be paid to the state on July 31st 2011 for the full fiscal year will total $196.4 million. This is a significant drop compared to $200.7 million actually paid last year and this year’s early estimate of $205.4 million.
Total ticket sales for the first six months of the fiscal year totaled $375 million, or $14.9 million less than the same period last year, and $16.7 million less than the amount budgeted last spring. According to Lottery President Arch Gleason this trend has been evident for the past couple of years as Kentucky struggles to find a way out of recession.
One of the main factors highlighted by Gleason was that there were hardly any sustained roll overs in Powerball, meaning that jackpots were lower. The fact is that people prefer to buy tickets when the jackpot is very high. Powerball ticket sales in Kentucky are projected to fall $25.9 million to $73.3 million for this fiscal year.
Gleason said, “While economic factors in our state are making the situation difficult, we’re working hard to turn this around. We have embarked on a revenue growth project utilizing teams of employees to look at best practices of our own and those of other U.S. lotteries to improve sales in the short and long term.”
source: The Courier Journal
Published: January 31, 2011