The Arizona Lottery has announced that sales have increased to more than $1bn for the first time ever and this is thanks to a boost in instant ticket sales, the inclusion of large national jackpots and a steady increase in the gambling business. Detailed financial results for the state agency won’t be released until after the fiscal year, which ends June 30th 2019, but with this date fast approaching, lottery sales have exceeded $1 billion.
Sales generated in 2018 amounted to $981 million; fiscal analysis for 2018 also saw a spike in record sales too, with a 15.2% jump in revenue over the previous year (2017).
Current year revenue is estimated to be more than $220 million in expenditure to 18 government agencies and public programs. This overall figure is also up on the previous year, which saw almost $212 million handed out to various agencies and programs. In 2018, $120 million was awarded to the state’s general fund, almost $40 million went to universities, $21 million was handed to the state Department for Health Services and in addition to all this, it’s estimated that retailers throughout the state have amassed more than $66 million in commission from sales of lottery tickets.
In fiscal 2018, every dollar of sales saw 66 cents going directly to prizes, almost 22 cents awarded to public programs and 7 cents for all other expenses – such as administration costs.
Expansion in National Gambling:
Arizona currently ranks 21st in total sales among the states and 2nd in the growth of instant ticket sales (scratchcards), according to John Turner Gililand, a state lottery spokesman. The state lottery generated the sum of $75 million last October and this was from just two big jackpots’ the $620 million Powerball and the $1.6 billion Mega Millions draw. “Revenue can grow quickly when jackpots are rolling," Gilliland said.
But it’s not only lottery that has seen a rise in revenue; Harrah’s Ak-Chin Casino near Maricopa is just one of 25 tribal casinos in Arizona, has recently announced plans for a major expansion with remodelling, which is scheduled to take place on its 25th anniversary, thanks to a rise in revenue. Tribal casinos employ more than 38,000 staff and generate $691 million annually for government taxes and revenue.
Other casino chains in the US such as Las Vegas Sands, MGM Resorts, Wynn Resorts and Caesars Entertainment (which manages Harrah’s Ak-Chin), have all reported revenue gains.
Gains in other states have also been recorded, but this time in sports betting in the wake of the ruling by the U.S, Supreme Court to legalize sports betting. In total, there are now 8 states permitted to offer sport betting services, including New Mexico, Nevada and six states east of Mississippi. There are more states toying with the idea of allowing sportsbook services, and it’s only a matter of time before more jump on board.
Source: Wiles, Russ. “Arizona Lottery exceeds $1 billion in sales for first time ever” . AZ Central. June 4, 2019.
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