(Pierre) - The total amount of revenue raised by the South Dakota Lottery topped more than $1.5 billion at the recent completion of the state’s fiscal year.
The Lottery generated nearly $119.9 million in revenue for fiscal year 2007, which ended on June 30. That brings the revenue raised by the Lottery to $1,565,043,914 since the Lottery began.
Norm Lingle, executive director of the Lottery, said the year’s total revenue was the largest transferred to state coffers in a single year. “We’re pleased to celebrate our twentieth year with another record amount of revenue to help fund education, lower property taxes, and develop natural resources,” he said.
The Lottery sold its first ticket on September 30, 1987, less than a year after a constitutional amendment was adopted to allow a state-operated lottery.
Product performance for the 2007 fiscal year was mixed, with total revenues surpassing the previous year by less than $1 million.
Scratch ticket sales generated at least $4 million in revenue for FY07. Lotto ticket sales generated at least another $5.2 million. The year’s totals for both are expected to increase after an audit is completed and a second revenue transfer made. Video lottery generated $110.4 million in revenue.
Scratch ticket sales for the fiscal year declined a half a percent to $18.4 million, nearly $100,000 short of last year.
Lingle attributed the slower sales to high gas prices, but also noted the Lottery was still able to increase revenues. “We negotiated a new ticket printing contract and lowered our costs significantly. We sent nearly a half million dollars more to the general fund this year even with slightly lower sales,” he said.
Scratch ticket sales raised $4 million for the general fund in FY07. Each year, half of the general fund is used to support K-12 and higher education.
Lotto ticket sales increased 2% to $21.3 million for the fiscal year, despite a drop in Powerball sales. Record high Powerball jackpots prompted a big jump in sales in FY06, something that was hard to match in FY07. “We made up the difference with our other lotto games. Hot Lotto and Wild Card 2 had their own record high jackpots that boosted sales and Dakota Cash performed well too,” Lingle said.
Lotto ticket sales raised $1.4 million for the general fund and $3.8 million for the capital construction fund, which is used for water and environment projects, ethanol production incentives and the state highway system.
Video lottery revenue grew less than 1% in FY07. Play of the machines generated $110.4 million for the property tax reduction fund while licensing fees generated $60,000 for the general fund.