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2007-08 Fiscal Year Marks Seventh Consecutive Year of Revenue Growth
Schenectady, NY Building upon seven consecutive years of growth, the New York Lottery today announced it achieved another record-setting year in fiscal year 2007-08 for its sole mission to earn revenue for education.
The Lottery contributed nearly $2.6 billion to help support education in New York State on incoming revenues of $7.549 billion - - a profit margin of 34.3%. The New York Lottery continues to be North America’s largest and most profitable Lottery, earning over $34.2 billion in education support statewide since its founding over 40 years ago.
This $2.6 billion Lottery Aid-to-Education funding represents over 13% of total state aid to education, which was $19.65 billion in 2007-08.
“Education is the big winner as a result of the Lottery’s record growth this year,” said New York Lottery Director Gordon Medenica. “We’ve been successful in driving growth in a competitive gaming market. Ultimately, our ability to achieve record results comes from our commitment to providing customers with innovative, fun and entertaining games.”
Where Lottery Money Goes:
Overall, 96% of the Lottery’s record $7.5 billion in sales was returned to New Yorkers in the form of prizes, aid to education, and commissions to independent retailers:
- The $2.6 billion earned for education, 34.3% of total sales, represented a 10% increase over fiscal year 2006-07.
- Total commissions paid to over 16,000 traditional Lottery retailers and eight video gaming facilities totaled $707 million. The Lottery paid $399 million in commissions to traditional Lottery retailers and $308 million in commissions to video gaming facilities.
- The entire operation of the Lottery, including advertising, marketing, printing, systems, telecommunications, finance and administration, is funded from the remaining 4% of sales.
Lottery Director Medenica attributed the Lottery’s growth in fiscal year 2007-08 to the first full year of Video Lottery Terminals in all eight racinos statewide. Traditional Lottery games such as Lotto, Mega Millions, Numbers and Instant Scratch-Off tickets, while the largest part of the Lottery product line, experienced “almost no growth,” according to Medenica. “Nevertheless, Lottery commissions paid to thousands of our retailer partners across the state help create jobs and promote economic development among small and medium sized businesses and corporate franchises alike,” he added.
Traditional Lottery Games Experience Slow Growth:
Sales in 2007-08 included $6.674 billion from traditional Lottery games, up slightly from $6.652 billion in 2006-07, an increase of $22 million, or 0.3%. Within the product mix of traditional Lottery Games, growth came from the twelve-state “Mega Millions” jackpot game and the daily “Win 4” game. Other games, such as “Lotto” and “Take 5”, declined, while “Quick Draw” and “Numbers” were flat.
Within traditional Lottery games, $3.9 billion (59%) went back to players as prizes, $2.1 billion (31.5%) went to education and $399 million (6.0%) went to retailer commissions; Lottery operations cost $237 million (3.5%).
Video Gaming Revenues Drive Overall Lottery Growth:
The Lottery has achieved seven years of consecutive growth partly due to the ongoing roll-out of new video gaming facilities over the past five fiscal years. Revenue from Video Lottery Terminals (VLTs) at the state’s eight racinos in fiscal year 2007-08 totaled some $875 million in “Net Machine Income.” “Net Machine Income” represents revenue remaining after the payout of prizes to players. Video Lottery Gaming “Credits Played” (the cumulative sum of all bets played, called the “handle”) in fiscal year 2007-08 totaled $10.68 billion, with $9.81 billion returned to winners.
Of the $875.3 million in Net Machine Income, $492.7 million (56.3%) went to education, $307.7 million (35.2%) went to the VLT facilities, and $74.9 million (8.5%) went to contractor and operating expenses.
About the New York Lottery and Education Funding:
The New York Lottery was enacted into the New York State Constitution by voters as a result of a ballot initiative in 1966. The Office of the New York State Comptroller distributes revenue earned by the Lottery for education based on a statutory formula.
The Lottery’s ongoing commitment to education also includes the awarding of some 3,600 Leaders of Tomorrow Scholarships and recognition of hundreds of Educators of the Week statewide annually. The Lottery also supports education programs like EdVideo Online, Regents Review Live and the Hugh L. Carey Empire State Games.
For more information about the New York Lottery’s annual earnings, visit www.nylottery.org. |
