The Arkansas Scholarship Lottery's revenues increased in February from $46 million in the same month a year ago to $49 million, but the amount raised for college scholarships remained flat at about $7 million.
Scratch-off ticket revenues increased from $37.2 million a year ago to $39.6 million last month and the lottery's draw-game revenues increased from $8.7 million a year ago to $9.3 million last month, lottery officials reported Monday in the monthly report to Gov. Sarah Huckabee Sanders and the Legislative Council's lottery oversight subcommittee.
The lottery's Mega Millions revenues increased from $1.1 million in February 2023 to $1.9 million last month, and Powerball revenues dropped from $2.6 million in February 2023 to $2.4 million last month, according to the lottery's records.
Lottery Director Eric Hagler said many players cross-pollinate their play with draw and scratch-off games, also called instant games.
"During early February 2024, the draw side of the game portfolio did not have outsized jackpots," Hagler said in a written statement. "When draw jackpots are in the early stages of growth, we see a migration to instant games. As the month progressed, we saw a shift among consumer buying patterns towards draw (due to rising jackpots). Overall, February delivered a normalized month for play. It was a trying month for our team, but we ended on a distinct positive note for both key metrics (total sales, net proceeds)."
Hagler said the amount raised for college scholarships in February remained at about the same level as in the same month a year ago because in January "we saw the cash-to-accrual [accounting] adjustment result in a positive flow of [$2 million plus]; this month, the flow was reversed, almost to the penny."
"Net Proceeds are also fluid depending on game mix and respective margins. We continue to forecast a historic top-two year for Net Proceeds," he added.
During the first eight months of fiscal 2024, lottery revenues totaled $405.5 million -- up slightly from $405.2 million in the same period in fiscal 2023 -- according to the lottery's reports.
So far in fiscal 2024, the lottery's total revenue is 8.7% better than the lottery's projected budget, Hagler said.
During the first eight months of fiscal 2024, the lottery's scratch-off revenues totaled $314.4 million -- up from $307.8 million in the same period in fiscal 2023 -- and the lottery's draw-game revenues totaled $90.5 million -- a drop from $97 million in the same period in fiscal 2023 -- the lottery reported.
During the eight months of fiscal year 2024, the amount raised for college scholarships totaled $75.6 million, an increase from $72.4 million in the same period in fiscal 2023, according to the lottery's reports.
At the end of each fiscal year, the lottery transfers the balance of its unclaimed prize reserve fund, minus $1 million, to scholarships. The lottery's unclaimed prize reserve fund totaled $9 million Feb. 29 after receiving $1.1 million in unclaimed prizes in February
So far in fiscal 2024, the lottery's income before transfers for college scholarships is 23.49% better than the lottery's projected budget, Hagler said.
For all of fiscal 2024, the lottery has projected a total revenue of $567.9 million and raising $100.7 million for college scholarships.
In fiscal 2023, which ended June 30, the lottery raised $114.7 million for college scholarships, the largest amount it has produced in any fiscal year. The lottery's previous high for scholarships was $106.6 million raised in fiscal 2021, which ended June 30, 2021.
The lottery's revenue in fiscal 2023 totaled $608.2 million, lagging behind the $632.5 million collected in fiscal 2021. In fiscal 2021, lottery officials attributed the performance in part to factors brought on by the covid-19 pandemic, such as people spending more time at home.
Hagler has attributed the record amount of money raised for college scholarships in fiscal 2023 to collecting more draw-game ticket revenue in that fiscal year.
SCHOLARSHIPS
So far in fiscal 2024, the state Division of Higher Education has disbursed $62.9 million in Arkansas Academic Challenge scholarships to 29,041 students, state Department of Education spokeswoman Kim Mundell said Monday.
In fiscal 2023, the Division of Higher Education disbursed Arkansas Academic Challenge scholarships totaling $74.3 million to 26,109 students. For fiscal 2024, the Division of Higher Education projected it will award 27,000 students Academic Challenge scholarships totaling $75 million.
Fiscal 2023 is the second consecutive fiscal year over the past 13 fiscal years in which Arkansas Academic Challenge scholarships were awarded to fewer than 30,000 students.
The amount handed out for Academic Challenge scholarships peaked at $132.9 million in fiscal 2013, with awards going to 33,353 students. Scholarship totals have dropped largely because the Legislature cut the amount of initial scholarships several times.
The Arkansas Academic Challenge scholarships are financed with lottery proceeds plus $20 million a year in state general revenue.
So far in fiscal 2024, the division has disbursed $698,829 in Workforce Challenge scholarships, Mundell said, and 1,084 students have been awarded those scholarships.
In fiscal 2023, the Division of Higher Education disbursed Workforce Challenge scholarships totaling $521,277 to 701 students. For fiscal 2024, the division projected awarding Workforce Challenge scholarships totaling $750,000 to 2,000 students.
In 2017, the Legislature created the Workforce Challenge Scholarship to use excess proceeds to provide up to $800 per year for students enrolled in programs that lead to qualifications in high-demand occupations.
So far in fiscal 2024, the division has disbursed $2.5 million in Concurrent Challenge scholarships to 9,386 students, Mundell said.
In fiscal 2023, the division disbursed Concurrent Challenge scholarships totaling $2.6 million to 13,982 students. In fiscal 2024, the division projects distributing Concurrent Challenge scholarships totaling $3 million to 17,000 students.
In 2019, the Legislature created the Concurrent Challenge program that allows high school juniors and seniors to receive scholarships for a semester or an academic year in which they are enrolled in an endorsed concurrent course or certain programs.