Illinois Lottery FY12 Sales Top $2.67 Billion

Transfers to Good Causes Exceed $708 Million; Final Profit Analysis Awaits Audit

Springfield, IL–(ENEWSPF)–July 23, 2012.  Illinois Lottery sales topped $2.67 billion during the fiscal year that ended June 30, in which the Lottery transferred a record $708.6 million to good causes:  $639.8 million to public schools, and $68.8 million to roads, bridges, and to fund causes through the sale of special instant games like the fight against breast cancer and Illinois veterans’ assistance. 

A key to increased sales, according to the Lottery’s new Superintendent, was the Lottery and its private manager, Northstar Lottery Group, moving decisively to change its brand image in Illinois. “Research indicates that most adults in Illinois support the idea of the Lottery, but a much smaller percentage actually play,” said Lottery Supt. Michael Jones. “We also learned during an advertising review that we have work to do to make the lottery relevant to a larger segment of the population.”

The lottery’s emphasis on, and redesign of, its specialty instant games–Veterans’ Cash, Mission Move, Ticket for the Cure, and Red Ribbon Cash—which benefit specific causes, helped players and non-players alike realize the essence of the Lottery: you risk a small amount of money toward a large prize, with the net proceeds going to something you believe in.  “Making people aware of that equation is one of the keys to the Lottery’s long–term success,” Jones said.

Jones pointed to the Powerball creative done by the Lottery’s multi-cultural ad agency, Commonground, as another turning point that impacted sales. “Almost everywhere I go, people comment on that television spot,” said Jones. “It seemed to capture what a great state we live in–and the possibilities of what a lottery can do.”

Other marketing highlights that impacted the Lottery’s brand, according to Jones, include the rebranding campaign titled “Anything’s Possible,” as well as the recent relaunch of Little Lotto as Lucky Day Lotto.  

Total sales increased 17.9 percent (unaudited) over last year. Sales of instant tickets grew the most–27 percent–to $1.62 billion during fiscal year 2012.  Among popular new instant games were the beautifully designed Chicago Cubs, Chicago White Sox , and St. Louis Cardinals tickets, which allow participants a chance to win season and/or World Series tickets.
Sales for Mega Millions grew 9.5 percent, thanks in large part to a month-long run-up to the $656 million jackpot of March 30, 2012 that resulted in three winners across the country, including one from beautiful Red Bud, Illinois– a serene, story-book city of 3,700 in downstate Randolph County.  Merle Butler and his wife of 30 years captivated people across the country when he accepted an oversized check for the largest prize in Illinois Lottery history, while a crowd of several hundred Red Bud residents cheered the Butlers’ good fortune. 

The Illinois Lottery became the first lottery in the United States to sell tickets over the internet on March 25, 2012–when an internet sales pilot program began allowing adults in Illinois to purchase Mega Millions and Lotto tickets online. Internet sales through June 30 for the two games totaled $2.2 million.  Yearly sales were down for Raffle (-50% due to holding only one Raffle game instead of two), Pick 3 (-3.9%), and Lotto (-2.9%). Sales increased for Pick 4 (1.9%) and Lucky Day Lotto (9.6%).

In FY 2012, the Lottery transferred $639.87 million to the Common School Fund and $65.2 million to the Capital Projects Fund for roads, bridges and other capital projects. 

Through the sale of specialty instant games like Veteran’s Cash, the Lottery generated $3.5 million to four “specialty causes” (each receiving between $747,000 to $960,000): Illinois veterans groups; the battle against breast cancer, efforts to  improve the lives of people living with HIV/AIDS; research into finding a cure for Multiple Sclerosis.

“The Lottery’s primary responsibility is to maximize revenue to schools, roads and special causes in an ethical and socially responsible manner by expanding its player base, offering games everyone would like to play, chances to win prizes everyone would like to win, while making sure everyone is aware of the odds and the causes the Lottery benefits,” said Jones. “We have made progress toward those goals in FY12, while creating a new department and working with our private manager Northstar.”

FY 2012 saw the Lottery become an independent state agency, charged with overseeing operations with the Lottery’s private manager, Northstar Lottery Group. Final, year-end, net-income calculations, which could impact Northstar’s annual compensation, will not be completed until September, when all FY12 Lottery revenues and expenses have been audited.

FY12 Unaudited Game Sales

Pick Three
Pick Four
Mega Millions
Lucky Day Lotto
Power Play

In 2009, contributions to the Common School Fund were capped at $625 million plus inflation each year.  Revenues generated above the capped amount are transferred to the Capital Projects Fund.  Specialty game proceeds are dispersed under separate transfers throughout the year.

Complete, audited financial results for fiscal year 2012 will be provided later this year. Financial reports for previous years are posted on the Lottery’s website: www.illinoislottery.com

Source: illinois.gov