Hoosier Lottery Touts Record Surplus
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe Hoosier Lottery is reporting surplus revenue of $250 million for the 2014 fiscal year, compared to $224 million in 2013. Officials say the total is a record. It is the first full-year report since the lottery completed a more than $2 billion outsourcing deal with GTECH Indiana LLC. August 19, 2014
News Release
INDIANAPOLIS, Ind. – Hoosier Lottery officials today announced the Lottery is providing the State of Indiana with more than $250 million in surplus revenue for fiscal year 2014. The State uses the contributions to support the Build Indiana Fund, pensions for local firefighters and police officers and retirement funds for Indiana teachers.
The record surplus revenue was made possible in fiscal year 2014 because of an outsourcing agreement between the State Lottery Commission of Indiana and GTECH Indiana, LLC, a wholly-owned subsidiary of Rhode Island based GTECH Corp. In October 2012, the Lottery finalized an integrated services agreement with GTECH Corp. for services in the areas of marketing, sales and distribution.
The $250 million in surplus revenue for fiscal year 2014 is a 12 percent increase from $224 million in fiscal year 2013. Although final audited figures will not be available until later this year, preliminary totals show sales were $1.018 billion for fiscal year 2014.
“We are pleased with the financial results achieved in the first full fiscal year of the Hoosier Lottery's contract with GTECH Indiana,” said Sarah Taylor, Hoosier Lottery Executive Director. “Increasing Lottery revenue leads to more money for good causes that directly benefit Hoosiers.”
In fiscal year 2014, the Hoosier Lottery and GTECH Indiana reduced expenses, helping the Lottery come within $1.6 million of the bid net income goal of $256 million. GTECH Indiana has fulfilled its obligation under the integrated services agreement to fund the $1.6 million net income shortfall.
“We are pleased with our first year of operation in Indiana,” said Colin Hadden, GTECH Indiana COO and General Manager. “We look forward to continuing our collaboration with the Hoosier Lottery.”
Hoosier Lottery distributions benefit every county throughout Indiana. Each fiscal year, the Hoosier Lottery contributes $30 million to local police and firefighters' pensions and $30 million to the Teachers’ Retirement Fund. Hoosier Lottery earnings also contribute to the Build Indiana Fund, which help reduce motor vehicle excise taxes by up to 50 percent.
Since its inception in 1989, the Hoosier Lottery has transferred more than $4.5 billion to the State of Indiana for good causes. During that same period, Hoosiers won over $10.0 billion in prizes and retailers earned more than $1.1 billion on commissions.
To learn more about the Hoosier Lottery, visit www.hoosierlottery.com and follow us on Facebook and Twitter.
Source: The Hoosier Lottery