NEW: State Made $377.7 Million from Lottery Last Fiscal Year
Tuesday, October 09, 2012
The Rhode Island Lottery paid $377.7 million to the State’s General Fund for the year ended June 30, 2012 according to the Lottery’s audited financial statements. The amount paid to the General Fund represents the Lottery’s net income after payment of prize awards, commissions, and operating expenses.
The Lottery’s financial statements for the fiscal year ended June 30, 2012 and the independent auditor’s report thereon are included in a report issued by Auditor General Dennis E. Hoyle and released today 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.
The total amount transferred to the State increased $22.8 million over the year ended June 30, 2011. The Lottery’s gross profit from gaming operations before operating expenses totaled $383.6 million for the fiscal year ended June 30, 2012. Video lottery accounted for $320.8 million or 84% of total gross profit.
Net video lottery revenue increased approximately 7.1% compared to the prior year. On-line and Instant Ticket revenue also increased 7.9% and 8.7%, respectively, over prior year amounts. The Lottery’s operating expenses totaled approximately $6.2 million for the year ended June 30, 2012.
The Lottery, along with other New England states introduced the Lucky for Life regional game in March 2012, which offers a top prize of $1,000 a day for life. Sales for this game totaled $3.8 million in fiscal 2012.
The Lottery disclosed certain contingencies, most notably, enacted legislation in Massachusetts allowing three casinos and one slot parlor in that State. The Rhode Island General Assembly authorized a statewide referendum in November 2012 to allow casino-style gaming at Twin River and Newport Grand as a response to future gaming competition anticipated from Massachusetts.
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 auditors reported an instance of immaterial noncompliance with the minimum General Fund transfer requirement for on-line and instant ticket games. The auditors recommended that the Lottery propose modifications to the General Laws to better align transfer requirements to current prize structures and provide for proportionate allocation of operating costs to all games. In addition, the report included two other findings related to the operation of the recently implemented Lucky for Life game and information systems security. The Lottery’s responses to these findings are also included in the report.
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Comments:
anthony sionni
5:29pm on Tuesday, October 09, 2012
thats a lot of money,what are they doing with it?
Russ Hryzan
2:18am on Wednesday, October 10, 2012
Paying pensions and health bennies for people who don't even work for the state and cities/towns anymore. It sure as hell isn't being used to rebuild our crumbling transportation infrastructure or renovate our aging K-12 schools and colleges (since we continue to borrow millions upon millions every election to pay for things that should be annually budget and should never require borrowing to accomplish).
Odd Job
3:10am on Wednesday, October 10, 2012
seems a bit high. $377 per person in this state? you sure of that?
CASH Only
6:10pm on Wednesday, October 10, 2012
I live in Connecticut, and have noticed that the number of L-F-L overall winners have dropped by at least 50 percent since the game expanded 7 months ago. I'm guessing that, throughout the region, players are slowly "boycotting" L-F-L because its winners _cannot_ choose lump sum in lieu of the lifetime annuity. As some financial experts are warning of high inflation (if not HYPERinflation) in the near future, a L-F-L winner would not be able to guard against such a disaster because of the game's lack of a cash option. We in Connecticut have "Classic Lotto", which allows a winner to truly be "lucky for life" if they choose the CASH OPTION and is wise with their winnings. Rhode Island, however, does not offer a "Classic Lotto"-type game. RILOT needs either to join forces with CT to make "Classic Lotto" a two-lottery game, or, add the "Hot Lotto" game that is available in Maine, New Hampshire, Vermont, and 12 other lotteries.