(Pierre) - Fiscal Year 2002 was a record-setting one for the South Dakota Lottery. The state agency, through the sales of its instant and lotto tickets and the collection of revenues from video lottery, produced over $109.4 million in revenue for state projects and programs – a 7.8 percent increase over FY01.
Video Lottery – the Lottery’s leading product – produced $102.87 million in revenues to the state; $102.84 million of that will be placed in the Property Tax Reduction Fund, which helps reduce property taxes on owner-occupied and agricultural lands by about 30 percent. The remaining $30,000 will be deposited into the state’s General Fund, which funds numerous important programs like education, the Unified Judicial System and programs of health, human and social services. Video Lottery revenues were up 6.6 percent from the previous fiscal year.
Instant tickets produced $3.08 million in revenue – a huge increase of 36.9 percent over the previous fiscal year -- for the state’s General Fund. While instant ticket sales increased 6.7 percent in FY02, expenses increased only 2 percent overall, helping account for the large bump in revenues generated for the state. A gigantic Powerball® jackpot run last August helped boost overall lotto revenues by 25.5 percent over the previous fiscal year. Lotto revenues are dedicated to the Capital Construction Fund, which funds programs like ethanol production incentives, special transportation and water projects and the General Fund.
“Our staff has worked extremely hard to make this year a record year for the Lottery,” said Clint Harris, Acting Executive Director of the South Dakota Lottery. “To know that we are producing revenues for so many worthwhile programs is a strong motivator for all of us.”
Harris said some of the increase in video lottery activity is explained by a higher average number of terminals throughout FY02 versus FY01. The increase in sales of instant tickets is due to a change in philosophy on how often new tickets are introduced to the public and also the restructuring of special promotions and the instant games themselves. “Our staff simply did a better job of watching ticket inventories and knowing when was the right time to launch a new game,” Harris said. “Our sales staff worked hard with retailers on promotions to bring better awareness to our games. Our marketing staff really concentrated on the kinds of games that our players would better appreciate and how to make promotions make better sense to the public.”
Powerball helped pave the road for an overall increase in lotto ticket sales by starting the Fiscal Year with a $295 million jackpot run. “Anytime a Powerball jackpot grows, more players pay attention and that generates more revenue for the state,” Harris said.
Since its inception in 1987, the Lottery has raised over $973 million for state-sponsored programs. Below is a breakdown of unaudited FY02 sales, prizes, retailer commissions and revenue for the instant and lotto product lines and net machine income and revenues produced by video lottery in FY02.