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Kentucky Lottery approves adding Mega Millions

Kentucky LotteryKentucky Lottery: Kentucky Lottery approves adding Mega Millions
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The Kentucky Lottery Corporation's board of directors has approved a cross-selling agreement allowing sales of the Mega Millions multi-state jackpot game in the Commonwealth.

Tentatively set to go on sale in Kentucky at the end of January 2010, lottery players will have both Mega Millions and Powerball available as multi-state multi-million dollar games.

Drawings for Mega Millions are held Tuesday and Friday nights, while Powerball drawings will continue to be held Wednesday and Saturday nights.

Mega Millions is played like Powerball in that tickets cost $1 and players select five white balls from 1 to 56 and one "Mega Ball" from 1 to 46. The game also has an add-on "Megaplier" feature which acts as a prize multiplier. Mega Millions also holds the world record for largest annuity-based prize ever awarded ($390 million in March 2007).

The option of offering both Powerball and Mega Millions had not been possible until an agreement was reached during an October joint meeting of the Powerball and Mega Millions lottery directors.

Kentucky Lottery president and CEO Arch Gleason was an advocate for the cross-selling arrangement during negotiations. "This is a win-win situation for the Kentucky Lottery, as it will allow our players more chances to play for the large jackpots they enjoy," said Gleason.

"Research conducted in 2008 showed 24% of players would play both of the games, and 38% would play in addition to games already played," Gleason said. He also reported collective sales of the two games could reach approximately $125 million to $130 million annually, with Mega Millions accounting for approximately $60 million of that amount. Gleason said some cannibalization of Powerball and other online game sales is expected, which will result in a net incremental sales gain of approximately $32 million annually. For the remainder of FY 10, he estimated total Mega Millions sales of $25 million and an incremental sales gain of approximately $13 million.

Powerball sales in Kentucky during FY09 were $96.9 million, which was a 1.5% drop from the previous year. The first Powerball (then known as Lotto America) ticket in Kentucky was sold on January 10, 1991.

As it now stands, there are 31 states, the District of Columbia and the U.S. Virgin Islands participating in the Powerball game. Mega Millions is offered in 12 states.

Once the cross-selling agreements go into effect at the end of next month, Gleason says 35 of the 45 jurisdictions that had previously been selling one game or another will make both available to their players. Other lotteries are expected to join in the cross-selling during 2010.

The board also learned the results of fiscal year-to-date sales. Vice President of Finance Rick Kelley reported overall sales from July through October have totaled $261.6 million, which is $255,000 (or 0.1%) less than in the prior fiscal year. This number is also $3.2 million (1.2%) less than budgeted.

Kelley reported the Kentucky Lottery is experiencing the industry-wide trend of softening instant ticket sales. Sales for these games have declined $10.1 million (6.1%) for the FY to date compared to last year, and are $10.5 million (6.3%) less than budgeted. Online games such as Pick 3 and Powerball however are $9.9 million (or 10.4%) higher for the first four months of the current FY than from the previous FY.

Even in light of the declining sales, Kelley said, the Kentucky Lottery has been able to increase profits back to the state. This is due in large part to the increase in sales of online games, which have a higher profit margin than instant tickets. Year-to-date income before transfer of dividends was $69.8 million dollars, which is $4.6 million than the same period in the previous year and $1.5 million more than budgeted.

In other actions, the board:

  • Approved an amendment to the personal services contract with Delehanty Consulting LLC.
  • Accepted an internal audit report indicating the KLC's compliance with items in the June 2009 APA's auditors alert.
  • Approved game rules and regulations for eleven scratch-off games and five pull-tab games.

The next meeting of the KLC's board of directors will be January 22nd. The meeting will begin at 9:30 AM EST, and will be held at the Kentucky Lottery headquarters at 1011 West Main Street in Louisville. Committee meetings will begin at 8:30 AM EST.

Press Release

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7 comments. Last comment 7 years ago by larry3100.
Page 1 of 1
Guru101's avatar - rw6jhh
Indiana
United States
Member #48725
January 7, 2007
1954 Posts
Offline
Posted: December 7, 2009, 10:35 pm - IP Logged

Nice. At least now I won't have to miss out on those really big jackpots being that Kentucky is only 5 minutes away from me. Hopefully Indiana will come to a decision soon.

Gonna win.Big Smile

    joshuacloak's avatar - Money Swim-uncle-scrooge-mcduck-35997717-677-518.jpg

    United States
    Member #32537
    February 12, 2006
    698 Posts
    Offline
    Posted: December 8, 2009, 12:13 am - IP Logged

    35 of the 45

     

    really, what are the other 10 states smoking

    it be like both games doubleing in size over nite, i

    it be a fresh shock to jackpot growth, and record sales for both, cant wait for new record jackpots!

     they will come around in a hurry,  i give the 10 holdout states a few month's before they all fold and go we give up, you can have both

     

    also i want to know what PB and MM plan to do to their Odds/matrix  LOL

    doubleing in player base over nite means the new odds are going to be setting new records also LOL

     

    i notice MM puts more money into their jackpot per ticket sold then PB,

    so i think even with the same player base MM will be Great one with PB as its side kick

     

    plus mm has no caps, unlike the retarded little brother that is PB with its <snip> jackpot caps

     

    i think MM will break 500m if the odds go up a little bit

    This post has been automatically changed by the Lottery Post computer system to remove inappropriate content and/or spam.

      rdgrnr's avatar - walt
      Way back up in them dadgum hills, son!
      United States
      Member #73904
      April 28, 2009
      14903 Posts
      Offline
      Posted: December 8, 2009, 12:00 pm - IP Logged

      Good move for Kentucky.

      All they're missing now is a Pick5 game.


                                                   
                           
                                               

       

       

       

       

                                                                                                         

      "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                  --Edmund Burke

       

       

        sunjune6's avatar - Lottery-010.jpg
        Atlanta,GA
        United States
        Member #79429
        September 1, 2009
        103 Posts
        Offline
        Posted: December 8, 2009, 1:44 pm - IP Logged

        Ladies and Gentlemen, we're on our way to a national lottery; hip, hip, hooray; hip, hip, hooray!!!!!!!!!!!!!!!!!!!!!!! It's just a matte of time. Like a few more years. My guess will be around 2036.

        Hope ya'll enjoy it; for I doubt if I be around at that time. Or I will be too old to even wonder about it. As that saying go in the mob------------Forget about it!

        If you think you can or if you think you can't you are right!

        Today could be the day!

          Avatar

          United States
          Member #26330
          November 16, 2005
          330 Posts
          Offline
          Posted: December 8, 2009, 2:46 pm - IP Logged

          I don't see why people would be happy with a national lottery.   Look at what happened when larger states started joining Mega Millions and Powerball.    The jackpots get hit more often because of more players and the jackpots are consistently low.    Well at least their will be shorter drives for people even though sometimes the "road trips" to buy lottery tickets was half the fun.....me and my buddies or work pals talking about what we were going to do with the dough.......  My only other concern is that now the Store Clerk that sells lotto tickets is going to be even more confused when I try and buy tickets.   And I can't imagine what will happen when one or the other jackpots gets up to a record ammount and new ticket buyers are trying to buy tickets.    As always I'll buy my tickets EARLY and keep the dream alive!!!  LOL

            tiggs95's avatar - Lottery-036.jpg

            United States
            Member #47420
            November 4, 2006
            3930 Posts
            Offline
            Posted: December 8, 2009, 9:28 pm - IP Logged

            Petergrfn.. The smaller the pot the less you can give away to people who beg..Just how much do you need?..

              larry3100's avatar - larry icon2.jpg
              Redwood City,California
              United States
              Member #70503
              February 3, 2009
              200 Posts
              Offline
              Posted: December 11, 2009, 7:24 pm - IP Logged

              Now we will have really big jackpots in the mega millions game. Party