Massachusetts Lottery Generates a Record $1 Billion-Plus Profit

Despite seeing sales drop 2.7%, the net profit of the state’s lottery rose 4.6%.

August 02, 2017

BOSTON – The Massachusetts State Lottery Commission reported a drop in sales of 2.7% but a rise in net profit of 4.6%, the Lottery Post reports. That pushed the lottery’s profit to more than $1 billion for the first time in its 45 years.

“This is a proud moment for the lottery,” said state Treasurer Deborah Goldberg. “During uncertain times, we were able to increase unrestricted local aid to the cities and towns throughout the Commonwealth.”

The lottery paid out $3.668 billion in prizes for the fiscal year ending June 30, with $291.9 million going to retailers to sell lottery tickets. Overall, lottery revenue for the state had been climbing for years, but last year’s decline was the first drop since 2010. Lottery Commission Executive Director Michael Sweeney pointed out that sales have not been keeping abreast with inflation for a long time.

Sweeney also said that the lottery depends on cash sales, which have hampered it from cashing in on online play. “We are absent from what I would argue is the most significant market change in commerce in recent years,” he said. “In order to change our business model, we'd need approval from the legislature, for example, to sell online.”

Instant ticket lottery games had a 2.7% drop in sales for 2017—last year, those tickets generated close to 70% of all lottery revenue. Powerball sales also dropped. “The bulk of your revenue is in the hands of one product,” Sweeney said. “We're looking for appropriate places to expand where we can.”

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