The Arkansas Scholarship Lottery's revenue in August totaled $35 million, a $3.8 million increase from a year ago, the lottery reported Monday.
Net proceeds, or the amount of money raised for college scholarships for the month, held firm at $5.4 million -- the same amount raised a year ago, the lottery reported to Republican Gov. Asa Hutchinson and the Legislative Council's Lottery Oversight Subcommittee.
August is the second month of fiscal 2017, which started July 1.
The lottery's revenue and net proceeds for college scholarships in July reached record levels for that month. That's because the lottery reaped the benefits of increased revenue from a national Mega Millions jackpot of more than $500 million and a national Powerball jackpot of nearly $500 million before winning numbers for both jackpots were drawn in other states.
The lottery started selling tickets on Sept. 28, 2009.
It has helped finance more than 30,000 Arkansas Academic Challenge Scholarships during each of the past six fiscal years. The Legislature has cut the size of future scholarships three times partly because net proceeds in previous years have lagged initial projections.
The lottery's revenue and net proceeds rebounded last fiscal year, after dipping each of the previous three fiscal years from a peak in fiscal 2012. Key lawmakers have said they want to make sure the lottery's rebound is sustainable before changing the current scholarship program.
Lottery Director Bishop Woosley said Monday that the lottery's revenue increased by $3.8 million in August compared with the same month a year ago because "our draw game sales increased due to large jackpots near the end of the month with Powerball and Mega Millions being over $100 million each and Natural State Jackpot being over $100,000, as well.
"In addition, we continued our two-year trend of having strong instant ticket sales," Woosley said in a written statement. "We also had an early launch of our September games on August 30 in light of the Labor Day holiday, which accounted for a two-day bump in instant-ticket sales."
Instant tickets also are referred to as scratch-off tickets.
The lottery's scratch-off ticket revenue increased in August by $3 million over a year ago to $29 million, while the lottery's draw-game ticket revenue increased by about $800,000 over a year ago $5.9 million, the lottery reported. The lottery's revenue also include fees paid by lottery retailers.
The lottery's net proceeds for college scholarships in August was the same amount as a year ago because "this past month we had several large prizes, including a Play It Again prize of $1 million that was paid out to a lucky Arkansas player that had entered her non-winning scratch-off ticket in the Player's Club," Woosley said.
The lottery also reported $2.6 million in its unclaimed prize reserve fund at the end of August. Under state law, the balance of that fund, minus $1 million, is transferred to scholarships at the end of the fiscal year on June 30.
Through the first two months of fiscal 2017, the lottery's revenue totaled $73.3 million and its net proceeds for college scholarships totaled $14.2 million.
The $73.3 million in lottery revenue is the largest amount of revenue collected by the lottery two months into a fiscal year since fiscal 2012's $74.1 million, according to lottery records.
The $14.2 million in net proceeds is largest amount of net proceeds raised by the lottery two months into a fiscal year since fiscal 2012's $14.6 million.
In fiscal 2016, lottery revenue totaled $456.3 million, an increase of $47.1 million over the previous fiscal year. Net proceeds -- the amount raised for college scholarships -- increased by $12.7 million, to $85.3 million, over what was raised in fiscal 2015. Fiscal 2016 ended June 30.
In fiscal 2012, the lottery's revenue and net proceeds peaked at $473.6 million and $97.5 million, respectively.
For fiscal 2017, Woosley is projecting revenue of $463.4 million and net proceeds at $80.9 million.
Woosley said Monday, "We are in a very good position after two months of this fiscal year."
"However, two months does not make a year. Several factors, including an increase in gas prices, could impact sales and the amounts we raise for scholarships over the next 10 months," he said. "I am happy with where we are, and I am happy with the strategies we have in place to increase sales and proceeds."
Metro on 09/13/2016