The Arkansas Scholarship Lottery's net proceeds for college scholarships in February increased by $2.2 million over what was collected a year ago to $6.6 million, while its revenue increased by almost $400,000 over year-ago figures to $41.1 million.
The lottery's scratch-off ticket revenue last month declined by about $2 million from the same month a year ago to $32.4 million, while the lottery's draw game revenue increased by about $2.4 million to $8.6 million, the lottery reported Friday in its monthly report to Gov. Asa Hutchinson and the Legislature's Lottery Oversight Subcommittee. The lottery's revenue also includes fees paid by retailers.
Draw games include Powerball, Mega Millions, Natural State Jackpot, Cash 3 and Cash 4.
"We had a very good month for draw game sales with the Powerball jackpot being high and the Natural State Jackpot growing throughout the month," lottery Director Bishop Woosley said Friday. "When you have high draw game sales, the return increases as those games are more profitable to the lottery."
The lottery stated selling tickets in late September 2009.
Along with $20 million a year in general revenue and a $20 million reserve account to cover temporary cash shortfalls in scholarship funds, the lottery has helped finance more than 30,000 Arkansas Academic Challenge Scholarships during each of the past seven fiscal years. The Legislature has cut the size of future college scholarships three times because net proceeds fell short of initial projections, and more students than initially projected received the scholarship.
Revenue and net proceeds peaked at $473 million and $97.5 million, respectively, in fiscal 2012 before dropping each of the next three fiscal years.
In fiscal 2016, revenue and net proceeds rose with the help of a world-record $1.6 billion Powerball run in January 2016.
Fiscal 2016's total lottery revenue was $456.3 million, an increase of $47.1 million over the previous fiscal year. Net proceeds increased by $12.7 million, to $85.3 million, over what was raised in fiscal 2015.
During the first eight months of fiscal 2017, revenue totaled $291.1 million, compared with $304.7 million in the same period in fiscal 2016.
So far in fiscal 2017, scratch-off ticket revenue has declined by about $200,000 over the same period in fiscal 2016, to $235.2 million, while the lottery's draw-game ticket revenue has dropped by $13.4 million over the same period in fiscal 2016, to $55.3 million.
Woosley said it would be hard to pinpoint a reason for the drop in scratch-off ticket revenue "given the small difference relative to how much we sell."
"I think our early spring instant sales were a bit slower due to the delay in federal income tax returns this year. Just last week we had our best instant ticket sales week since 2012. This week's sales for instant tickets are strong as well. It could be that we are seeing a delayed impact due to the timing of the tax returns. We normally begin seeing that in late January," he said. Scratch-off tickets also are referred to as instant tickets.
During the first eight months of fiscal 2017, net proceeds have totaled $50.9 million, compared with $54.3 million in the previous fiscal year.
Under state law, the lottery's unclaimed prize reserve fund, minus $1 million, is transferred for scholarships at the end of the fiscal year.
As of Feb. 28, the lottery reported $6 million in the unclaimed prize reserve fund, after adding $802,147.04 in unclaimed prizes in February.
Woosley, who has been the lottery's director since February 2012, is projecting revenue at $463.4 million and net proceeds at $80.9 million in fiscal 2017.
"We are right at $3 million above budget for proceeds for the fiscal year," Woosley said.
In November 2015, lottery officials signed a contract with Camelot Global Services to develop a business plan and help implement it. The company has offices in London and Philadelphia.
Camelot's self-described ambitious business plan projects lottery revenue at $463 million in fiscal 2017. It forecasts net proceeds for college scholarships at $81 million in fiscal 2017.
Metro on 03/11/2017