NEW: Rhode Island Lottery’s Payout to State Decreased $2.9M in Last Fiscal Year

Tuesday, October 14, 2014

GoLocalProv Business Team

The Rhode Island Lottery's payout to the state decreased $2.9 million from last year's payout of $379.2 million.

The Lottery contributed $376.3 million to the State’s General Fund for the year ending June 30, 2014, according to the Lottery’s audited financial statements.

The report was issued by Auditor General Dennis E. Hoyle and released by the Joint Committee on Legislative Services. The auditors concluded that the Lottery’s financial statements were fairly presented in accordance with accounting principles generally accepted in the United States of America.

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Revenue Breakdown

The total amount transferred to the State for fiscal 2014 decreased $2.9 million compared to the year ended June 30, 2013. The Lottery’s gross profit from gaming operations before operating expenses totaled $386.3 million for the fiscal year ended June 30, 2014. Video lottery accounted for $306.5 million or 79.3 percent of total gross profit.

Net video lottery revenue decreased approximately 2.6 percent compared to the prior year. On-line and Instant Ticket revenue decreased 5.7 percent and 1.2 percent, respectively, over prior year amounts. The Lottery’s operating expenses totaled approximately $10.5 million for the year ended June 30, 2014.

Net revenue from Twin River table games totaled $88.1 million for the year ended June 30, 2014 - the first full year of table game operations. After commissions paid to Twin River, the State’s share of net revenue from table games amounted to $15.9 million.

Recommendations

The Auditor General also issued the Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The audit found no matters required to be reported under Government Auditing Standards.

However, the report contains two management comments relating to information technology resources at one of the licensed gaming facilities and a third comment relating to streamlining the financial reporting process of the Lottery by consolidating accounting systems.