Pandemic Slows Sales, But MA Lottery Has Third-Best Fiscal Year

Despite the challenges posed by COVID-19, the Massachusetts Lottery managed to overcome and conclude the 2020 fiscal year (FY) with its third-highest revenue figure.

According to the recent data revealed by State Treasurer Deborah Goldberg, the state lottery yielded an estimated net profit of approximately $979 million over the course of the most recent fiscal year, spanning from July 1, 2019 to June 30, 2020.

MA lottery sees over $5 billion in revenue

With an estimated total of $5.252 billion, the lottery achieved its third-highest revenue in its 49-year history.

Goldberg reports that revenues have consistently surpassed $5 billion for six consecutive years. Notably, FY 2019 witnessed record-breaking achievements, as the company accomplished a net profit of $1.1 billion and generated revenues amounting to $5.5 billion.

Despite a once-in-a-generation pandemic, 2020 achieved remarkable totals.

The lottery’s achievement demonstrates its vigorous endeavors leading up to the early spring closure, and its subsequent success during the partial reopenings in June.

Coronavirus impacts ticket sales, keno, draw games

According to lottery data, the sales during the months of March, April, and May witnessed a collective decline of $244.6 million compared to the corresponding period in FY 2019.

The decline in Keno sales amounted to a 7.2% decrease, going from $1.055 billion to $979 million. This drop in Keno revenue was primarily caused by the closure of bars and restaurants.

Despite the pandemic, instant ticket sales had a strong performance before it hit, contributing to higher sales in June. The total sales for the month reached $3.656 billion, just slightly below the previous year’s total by less than one percent.

However, there were significant declines in Mega Millions and Powerball.

The reduced size of the jackpots resulted in a decline of $141 million in total sales for the two programs, with Mega Millions experiencing a 50% drop and Powerball witnessing a 47% decrease in sales compared to FY 2019.

In spite of the declines, the lottery had a successful fiscal year in 2020, distributing $3.866 billion in prizes, which marks the third-highest sum in the history of the lottery. Furthermore, players were fortunate to win 185 prizes amounting to at least $1 million each.

The positive outcome of a potentially disastrous period was attributed to the implementation of “significant” safety measures by Michael Sweeney, the executive director of the lottery.

Sweeney expressed his admiration for our team members’ exceptional agility and responsible approach in promptly implementing and adjusting to new and modified operating procedures during this unprecedentedly challenging period for all of us.

He also stated,

In my experience at the lottery, the team’s achievement under these circumstances is the most remarkable accomplishment. It surpasses the records we set in various areas last year, as we encountered substantial operational hurdles and successfully conquered them.

Lottery revenue turns into municipal aid

Lawmakers had varying reactions to the news.

Democratic Massachusetts Representative Carlos Gonzalez expressed his astonishment, stating, “I am taken aback by this unexpected high figure. This news is incredibly encouraging and serves as a strong indication of the recovery.”

State Senator Eric Lesser, also a Democrat, demonstrated a more reserved demeanor.

He pointed out that while it is indeed good news, it only constitutes a small fraction of the state’s budget. He considers it a positive indication, but believes that there are still challenges ahead. Additionally, the closure of Massachusetts’ three casinos in mid-March, followed by their reopening in July, has also had an impact on the state’s finances.

Since 1972, cities and towns in Massachusetts have been receiving lottery revenue as unrestricted government aid.

According to the lottery’s data, significant sums of FY 2020 funds were allocated to major cities, such as $201 million to Boston and $44 million to Worcester. Conversely, smaller portions of the funds were distributed to less densely populated regions.

Gosnold, the tiniest town in Massachusetts, was granted a mere $2,227.

Goldberg, the chairperson of the Massachusetts State Lottery Commission, expressed gratitude towards our loyal customers. Additionally, they expressed pride in the efforts of the lottery team and committed retail partners, who have made necessary adjustments to ensure the continuous generation of essential local aid.

In the face of increasing challenges, the significance of these resources for our cities and towns becomes even more crucial.

Is it possible for those totals to be higher?

Legislators and Gov. Charlie Baker have been presented with the proposal by Goldberg and Sweeney to permit online lottery sales. However, the response from lawmakers and the governor has been varied, with Gov. Baker’s 2021 budget proposing restricted online lottery payments.

Concerns about the elimination of in-person store business have been raised by certain legislators, while state officials have highlighted an anticipated increase in overall revenue.

Goldberg stated in April that if we had the capability to process cashless payments and sell our products online, it would have undoubtedly assisted in reducing our losses.