The Illinois Lottery released their financial report for the 2012 fiscal year that ended on June 30. The report shows higher revenue than last year, but profits are still lower than proposed by lottery management company Northstar.
The illinois Lottery was established in 1974. In its first years of operation the Illinois Lottery provided revenue for the Illinois General Fund. In 1985 legislation passed to allow the Illinois Lottery to raise revenue for the Common School Fund, which benefits the education system throughout Illinois. Since 1985, the Illinois Lottery has provided funds for K-12 education throughout the state, with contributions for the 2012 fiscal year totaling $655.6 million. The 2012 fiscal year allowed the Illinois lottery to give record revenue to all of its beneficiaries, transferring a total of $793.5 million.
The Illinois Lottery financial report for the 2012 fiscal year includes total generated sales of $2.8 billion. The Illinois Lottery had an overall sales growth of 6% from the previous. The lottery attributes the growth in sales to the ability to purchase Powerball tickets on the internet. This change came in November 2012, and has helped attribute to the growth of Powerball sales. Powerball changes over the past year have helped the jackpots reach record heights, and have helped sales among state lotteries increase. The Illinois Lottery saw a sales increase of 61% for Powerball alone.
Despite the increase in sales, the lottery operations management company, Northstar Lottery Group has fallen short on their promises for the second year in a row. The Northstar Lottery Group acquired the Illinois Lottery in July 2011, taking over their day-to-day operations. Under their contract for the 2012 fiscal year, Northstar promised $947 million in net proceeds, however they fell short by more than $150 million. Northstar faces a $20 million penalty for the lower than expected sales.
Overall, the Illinois Lottery is proud to provide record amounts. They hope their sales will continue to increase and meet the expected goals of Northstar. They are relying on their internet sales to gain more popularity and bring in new lottery players.