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Big winners reduce Iowa Lottery profitability

Iowa LotteryIowa Lottery: Big winners reduce Iowa Lottery profitability

DES MOINES, Iowa — Iowa Lottery sales rose over the past 12 months, although profits dipped slightly amid a surge of lucky prize winners.

Preliminary figures released Tuesday show sales totaled $256.3 million for the state budget year ending June 30, up about 5 percent from a year earlier. Lottery proceeds, spent on state government programs, totaled $57.9 million, down about 4 percent from a year ago.

Iowa Lottery Chief Executive Terry Rich said two key factors reduced lottery profits. One is that prize payouts, which are cyclical and even out statistically over time, were ahead of projections. Compared with the previous year, the Iowa Lottery returned an additional $12.1 million prizes directly to players.

"Right now, we sure seem to have a lot of winners," Rich said.

Over the last 12 months, those fortunate players included seven $1 million prizes, compared with just two winners of $1 million payouts the previous year.

Secondly, the Iowa Lottery accrued expenses totaling about $1.5 million related to the state's early retirement program, Rich said. About 20 lottery employees recently retired, and accounting standards required that all expenses for the program be recorded during the recently concluded state budget year.

Despite the downturn in profits, Rich said, the lottery had its second-best year ever in generating sales revenue. The best year was in 2006, when the Iowa Lottery operated its ill-fated TouchPlay games, which resembled slot machines. The Iowa Legislature pulled the plug on TouchPlay amid controversies that arose.

One highlight of the fiscal year was the addition of the Mega Millions multistate jackpot game in January. The game added $5.5 million to lottery sales, while Powerball sales in Iowa increased to $59.2 million, up nearly 2 percent from a year earlier.

Instant-scratch tickets, a traditional favorite among players, were the biggest generator of sales over the past fiscal year. Scratch tickets brought in $143.7 million, while Powerball was second. Hot Lotto sales were third, at $13.6 million.

Des Moines Register

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11 comments. Last comment 6 years ago by RJOh.
Page 1 of 1
ressuccess's avatar - Lottery-043.jpg

United States
Member #93164
June 23, 2010
1322 Posts
Offline
Posted: July 28, 2010, 12:42 pm - IP Logged

I wonder why there were too many winners to drop Iowa's profit in their lottery?

    Todd's avatar - Cylon 2.gif
    Chief Bottle Washer
    New Jersey
    United States
    Member #1
    May 31, 2000
    23273 Posts
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    Posted: July 28, 2010, 12:47 pm - IP Logged

    I wonder why I wasn't one of them.

     

    Check the State Lottery Report Card
    What grade did your lottery earn?

     

    Sign the Petition for True Lottery Drawings
    Help eliminate computerized drawings!


      United States
      Member #68713
      December 28, 2008
      301 Posts
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      Posted: July 28, 2010, 5:05 pm - IP Logged

      I wonder why I wasn't one of them.

      Thumbs UpWell, Todd from your comments you do a lot of traveling may we look up one day to find are  a millionaire in any of the states playing.Anyway good luck on that ,I play Ind. Oh,Ill and where I am home Tenn.Big Smile

        Todd's avatar - Cylon 2.gif
        Chief Bottle Washer
        New Jersey
        United States
        Member #1
        May 31, 2000
        23273 Posts
        Offline
        Posted: July 28, 2010, 6:02 pm - IP Logged

        Thumbs UpWell, Todd from your comments you do a lot of traveling may we look up one day to find are  a millionaire in any of the states playing.Anyway good luck on that ,I play Ind. Oh,Ill and where I am home Tenn.Big Smile

        No, it was sort of a joke.

         

        Check the State Lottery Report Card
        What grade did your lottery earn?

         

        Sign the Petition for True Lottery Drawings
        Help eliminate computerized drawings!

          rdgrnr's avatar - walt
          Way back up in them dadgum hills, son!
          United States
          Member #73904
          April 28, 2009
          14903 Posts
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          Posted: July 28, 2010, 11:22 pm - IP Logged

          I think it's amazing how scratchers just literally blow away the other games in sales.

          I almost never even think about them much less buy them.

          But apparently there's a whole lotta people buying them like crazy.


                                                       
                               
                                                   

           

           

           

           

                                                                                                             

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

                                                                                                      --Edmund Burke

           

           


            United States
            Member #81843
            October 31, 2009
            856 Posts
            Offline
            Posted: July 29, 2010, 3:52 am - IP Logged

            Scratchers are a guaranteed pool to play from. People like fixed odds for one game and want to play against the same odds or better hoping they will win before all the tickets are sold. Kind of like raffle ticket feaver.People are getting desperate and any peak in sales will precede a sharp drop. I expect the divisions to make some changes soon. Looks like CA is on to it.

            DD

              RJOh's avatar - chipmunk
              mid-Ohio
              United States
              Member #9
              March 24, 2001
              19829 Posts
              Offline
              Posted: July 29, 2010, 2:36 pm - IP Logged

              Scratch tickets brought in $143.7 million. 

              Considering Iowa has about 3 millions people and half of them would probably be too young to buy lottery tickets, that's an average of 98 scratch tickets per potential player per year and if only half of them actual play then it's closer to 200 per player per year. 

              They probably have a lot of places selling scratch tickets that don't offer their on-line games.

               * you don't need to buy more tickets, just buy a winning ticket * 
                 
                           Evil Looking       

                rcbbuckeye's avatar - Lottery-043.jpg
                Texas
                United States
                Member #55889
                October 23, 2007
                5604 Posts
                Offline
                Posted: July 29, 2010, 9:05 pm - IP Logged

                I think it's amazing how scratchers just literally blow away the other games in sales.

                I almost never even think about them much less buy them.

                But apparently there's a whole lotta people buying them like crazy.

                Scratchers are probably the biggest seller in every state with a lottery. I never used to play them, but the last couple of months I've been buying them, and I win more on them than any other game.

                CAN'T WIN IF YOU'RE NOT IN

                A DOLLAR AND A DREAM (OR $2)

                  Winlotta's avatar - Lottery-001.jpg

                  United States
                  Member #60014
                  April 3, 2008
                  735 Posts
                  Offline
                  Posted: July 29, 2010, 11:47 pm - IP Logged

                  Iowa Lottery Chief Executive Terry Rich - . . . . . . fascinating. . . . . .  name ! ! !

                  Patriot

                  `|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|`

                   


                   

                   

                   


                    dpoly1's avatar - driver
                    PA
                    United States
                    Member #66141
                    October 16, 2008
                    1672 Posts
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                    Posted: July 30, 2010, 11:59 am - IP Logged

                    Without winners the lottery would grind to a halt !

                    The store where I purchase my powerball tickets has a giant $200,000 Winner "check" hanging above the lottery machine !

                    I am hoping for a $45.4 Million  winner "check" to be hanging in that store ! ........... after I win !

                    US Flag Citizens First !

                      RJOh's avatar - chipmunk
                      mid-Ohio
                      United States
                      Member #9
                      March 24, 2001
                      19829 Posts
                      Offline
                      Posted: July 30, 2010, 12:13 pm - IP Logged

                      Without winners the lottery would grind to a halt !

                      The store where I purchase my powerball tickets has a giant $200,000 Winner "check" hanging above the lottery machine !

                      I am hoping for a $45.4 Million  winner "check" to be hanging in that store ! ........... after I win !

                      US Flag Citizens First !

                      Even if you take the cash, the check will show the annuity amount of $85.0M

                       * you don't need to buy more tickets, just buy a winning ticket * 
                         
                                   Evil Looking