Massachusetts Lottery Profits Soar to $903 million

Massachusetts Lottery Profits Soar to $903 million

New games, belt-tightening drive profits up more than 5 percent

BRAINTREE, Aug. 5, 2010 -- Under the leadership of Treasurer Timothy P. Cahill, the Massachusetts State Lottery exceeded all expectations for Fiscal 2010 by posting profits of more than $903 million, an impressive jump of $44 million, or 5.1 percent, from Fiscal 2009.

The Massachusetts Lottery -- the nation's number one Lottery for sales per capita -- eclipsed the $900 million mark by introducing new and exciting games to the marketplace, while Lottery spending decreased by nearly 15 percent. All profits from the Massachusetts Lottery are used to aid the Bay State's 351 cities and towns.

"The Massachusetts Lottery's performance is especially important during these trying economic times," said Treasurer Cahill, chairman of the Massachusetts State Lottery Commission. "By leveraging our successful products, deepening our relationships with our professional sports teams and finding additional budget efficiencies, our Lottery has delivered millions more for taxpayers. When times got tough, we got more creative, inventive and lean."

After posting profits of $859 million in Fiscal 2009, the Lottery initially projected profits of $814 million for Fiscal 2010. But a series of significant steps -- the addition of Powerball, adding dozens of KENO agents, the release of a $10 instant ticket that has the best per capita ticket sales in the nation, and others -- propelled the Lottery's dramatic performance. At the same time, Lottery spending decreased by nearly 15 percent, or $13.8 million, in Fiscal Year 2010. The Lottery’s administrative expenses are less than 2 percent of its total budget, the lowest ratio in the nation.

"We took this fiscal year as a challenge to figure out how to deliver more for players and taxpayers while cutting from our already tight operating budget," Executive Director Mark Cavanagh said. "Our performance is the result of our proven business plan of offering the most entertaining games of chance in the Lottery industry and the commitment of our talented industry professionals."

For example, Cavanagh noted, the instant game $100,000 A Year for Life has been recognized by independent industry analysts as the top selling ticket in the nation as ranked by per capita sales in fiscal 2010.

During the tenure of Treasurer Cahill, the Massachusetts State Lottery Commission has raised more than $7.2 billion for police officers, firefighters, teachers and other essential municipal services.

Contact:

David Kibbe, State Treasury Communications Director, 617-367-6900

Catherine Gropp, 617-367-6900

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Click here to watch Fox 25’s Political Editor Joe Battenfeld’s coverage on the Lottery profits, or here to read the article.