Massachusetts Lottery reports record profits of USD 1B

Net profit, which is distributed to the state's cities and towns, was up 4.6 percent to US$ 1.035 billion - the commission's first net profit over US$ 1 billion in its 45-year history. "This is a proud moment for the Lottery," said state Treasurer Deborah Goldberg. "During uncertain times, we were able to increase unrestricted local aid to the cities and towns throughout the Commonwealth."

 The lottery also paid out US$ 3.668 billion in prizes for the fiscal year ending June 30. Another US$ 97.4 million went to Lottery operations overhead, and US$ 291.9 million went to the retailers who sell tickets. The total sales numbers amounted to about US$ 935 per year for every adult resident of the state, though people from anywhere can buy tickets here.

Lottery revenues have been going up for years, and topped US$ 5 billion for the first time in 2015. The decline in total sales was the first dip since 2010. But Lottery Commission Executive Director Michael Sweeney said sales have been failing to keep up with inflation for years.

 He said the Lottery's dependence on cash sales have hampered it at a time when sales could be happening online. "We are absent from what I would argue is the most significant market change in commerce in recent years," he said. "In order to change our business model, we'd need approval from the Legislature, for example, to sell online."

 Instant ticket lottery games, which last year accounted for nearly 70 percent of all lottery revenues, saw a 2.7 percent decrease in sales year over year for 2017. Powerball sales also decreased, following a record-setting year. "The bulk of your revenue is in the hands of one product," Sweeney said. "We're looking for appropriate places to expand where we can."

 All or Nothing, a new monitor game introduced last July, brought in an estimated US$ 18.8 million in sales, more than eight times the sales of Jackpot Poker, the game it replaced.

 The Commission also cut administrative costs in 2017, reworking sales routes for greater efficiency and funneling an additional US$ 5 million into net profit, he said.