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PA Lottery Reports Record Sales, Posts Increase in Profits to Programs Benefiting Older Pennsylvanians - Retail Network Growth Helps Drive Success

Middletown – The 2010-11 fiscal year was the Pennsylvania Lottery’s most successful one in recent history, as the Lottery set a new annual sales record and posted significant increases in net revenue for programs benefiting older Pennsylvanians, Interim Executive Director Drew Svitko announced today.

“As businesses across Pennsylvania started to grow again last year following the challenges of the recession, the Pennsylvania Lottery succeeded in expanding its retailer base by more than 500 locations last year,” said Svitko. “Those increased points of sale were the driving factor in our ability to expose more of our products to more players, and grow our sales and profits.”

Fiscal year 2010-11 Lottery sales totaled $3.2 billion, which was $142.2 million, or 4.6 percent, above the previous year. It was $118.7 million higher than the previous all-time sales record, which was set in fiscal year 2007-08.

The Lottery ended fiscal year 2010-11 with more than 9,000 retailers, a record for the modern-era Lottery that simultaneously sells terminal-based products and dozens of instant games.

Net revenues to the Lottery Fund for fiscal year 2010-11 totaled $960.6 million, which was $44.9 million, or 4.9 percent, more than the previous year. This fiscal year was the second-highest year for profit returned to the Lottery fund for programs benefitting older Pennsylvanians, just $4.6 million short of the all-time record for net revenue set in 2005-06.  

“The Pennsylvania Lottery remains dedicated to helping older Pennsylvanians, and the Pennsylvania Department of Aging is grateful for this support,” said Secretary of Aging Brian Duke. “The funds generated by the Lottery last fiscal year translate into social, educational and recreational programs and services for older Pennsylvanians that protect their independence, preserve their health and help improve the quality of their lives.”

Instant games sales for the fiscal year totaled $1.9 billion, which was $173.4 million, or 9.9 percent, higher than the previous year. Instant games accounted for 59.9 percent of fiscal year 2010-11 sales, as compared to 57 percent in 2009-10.

Sales for terminal-based games – including The Daily Number, Big 4, Quinto, Treasure Hunt, Cash 5, Match 6, Millionaire Raffle, Powerball and Mega Millions – totaled $1.3 billion for the fiscal year, which was $31.2 million, or 2.4 percent, less than the previous year.

Powerball sales of $214.2 million were $99.3 million, or 31.7 percent, less than last year. Mega Millions sales were $126.2 million. Mega Millions joined the PA Lottery game line-up on Jan. 31, 2010, and was only sold for five months of the previous fiscal year.

Lottery retailers, many of them family-owned small businesses, earned $168.6 million in commissions in fiscal year 2010-11. The number of locations selling Lottery products increased by about 500 locations last year, topping 9,000 retailers at the end of fiscal year 2010-11.

In fiscal year 2010-11, the Lottery’s administrative costs decreased $2.9 million from the prior fiscal year, accounting for only 2.3 percent of total sales.

“We are committed to improving efficiencies to maximize the dollars for programs that benefit older Pennsylvanians, we’re energized by our unique mission and excited to push that profit number even higher in the future,” said Svitko.  “According to the most recent industry reports, the PA Lottery ranks sixth among the 44 U.S. lotteries in annual sales and fifth in annual profits, so we succeed in squeezing just a little more out of a dollar for the bottom line than the majority of lotteries.”

About the Pennsylvania Lottery: The Pennsylvania Lottery remains the only U.S. lottery that designates all its proceeds to programs that benefit older residents.  Since its 1971 inception, the Pennsylvania Lottery has generated more than $21.5 billion for programs including property tax and rent rebates; free transit and reduced-fare shared rides; the low-cost prescription drug programs PACE and PACENET; long-term living services; and the 52 Area Agencies on Aging, including full- and part-time senior centers throughout the state. The Pennsylvania Lottery reminds its players to play responsibly. Players must be 18 or older.

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