NY lottery sales soar to USD 9.7B

The state Lottery collected record-high wagers, worth $9.7 billion, for the financial year that ended March 31, even as interest waned at the horse track, according to the state Gaming Commission.

The uptick – which produced a $3.3 billion bonanza in aid to public schools – is impressive in an field where growth is usually modest, said Thomas Garrett, a University of Mississippi professor and former Federal Reserve economist who has studied state lotteries.

"It's a good bump, but it won't last," Garrett predicted.

More than half of the $7.7 billion in sales for traditional lottery games involve the popular scratch-off tickets, the agency said in an annual report released this week.

The Win 4 lottery game racked up $911 million in sales, while another $902 million was spent on the Numbers game, according to the report.

Quick Draw, a video game authorized at some restaurants and bars, collected $787 million while New Yorkers ponied up $254 million for Mega Millions drawings.

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Lottery sales included nearly $2 billion in receipts from video terminals installed at nine harness tracks. That total does not include money paid to winners

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But while gamblers were willing to risk more on Lottery games, the sum wagered on horse racing at tracks and betting parlors declined by some $96 million from the prior year.

The past year's handle - of just below $1.48 billion - was also down from 2011, 2012 or 2013.

The surge in Lottery sales comes as the state hopes to see even more growth in gambling revenue with the opening of four new casinos.

In December, the Gaming Commission awarded licenses to operators of the Lago Resort and Casino in the Seneca County community of Tyre; the Montreign Resort Casino at Kiamesha Lake in Sullivan County; and the Rivers Casino and Resort at Mohawk Harbor in Schenectady.

All are expected to open within two years, the agency reported. A fourth operator, Tioga Downs Casino, has been selected for consideration by a state casino siting board.

The new casinos - in addition to gambling expansion in Massachusetts and Pennsylvania - have fueled speculation over whether Lottery revenues will hold up.

"There is some evidence that new gaming takes away from state lotteries, but it's not a significant amount," Garrett said. "It's a different type of product."

As states open casinos, he added, it's possible that spending on gambling will grow because those interested in playing casino games are not always the same people as those who buy lottery tickets.

Moody's Investors Service, in a February report, predicted that the Lago casino, to open between Rochester and Syracuse, will "cannibalize" other casinos nearby. Turning Stone, a casino run by the Oneida Indian Nation, and the Batavia Downs racino and Finger Lakes track could be affected.

Garrett said the popularity of scratch tickets across the nation. They top the charts in among players who want to see instant gratification.

"They don't have to wait around for three days to get the result on television,' he said.

The Lottery's popularity also made it a banner year for retailers, who get a 6 percent commission on sales.

Merchants raked in a total of $464 million -- $30 million more than a year earlier, according to the state.