Since the Montana Lottery sold its first ticket in 1987, it
has transferred more than $152 million to the State of Montana.
Since 1995, following legislative action, Lottery proceeds
have gone to the state's General Fund. The General Fund provides money
for state programs which do not have dedicated revenue sources, such as
education, health, and public safety, to name a few. Where Lottery proceeds
go is a function of the Legislature, not the Montana Lottery.
For fiscal year (FY) 2008, which ended on 6/30/08,
the Montana Lottery’s transfer to the General Fund was $11 million.
Here's an illustration of fiscal year 2008's performance,
based on total revenue of $43.8 million:
Prizes: By law a minimum of 45% of all sales must be paid
in prizes. Since 1987 through FY 2008, the Lottery has paid over $332 million in
prizes.
Retailer Commissions: Retailers earn 5% on all ticket sales
and have the opportunity, through their Scratch ticket sales, to earn up to an
additional 5%. To date, retailer commissons total more than $38 million.
Ticket Costs: They include the costs for printing Scratch
tickets and the fee–for–ticket (Lotto and Scratch) paid to our
Lottery operating system vendor.
Operations: The Montana Lottery is responsible for the marketing
and sales of all Lottery products; for public and media relations; for the security
of all aspects of the Lottery; for warehousing and inventory control; and for
Lottery operations, which include accounting, fiscal management, and information
technology. The operations chart below summarizes operations expenses for the past five years.
Proceeds to the state's General Fund: Beginning July 1, 1995,
Lottery net revenue has been transferred on a quarterly basis to the state’s General Fund.
In fiscal year 2008, the Lottery provided the General Fund slightly over $11 million. Through FY 2008,
the Lottery has transferred over $100 million to the General Fund.
Product costs such as retailer commissions and ticket costs are directly
related to ticket sales. As sales increase, these expenses increase accordingly.
Over the years, the Montana Lottery has shown efficiency in
the area of non-product expenses such as personnel, advertising, rent,
and other administrative expenses. The chart below shows these expenses over the
past five fiscal years, both in dollars and as a percent of total revenue.
Operations
 |
 |
 |
 |
 |
 |
| Admin. Expenses /$ |
$3,037,067 |
$3,252,095 |
$3,245,884 |
$3,135,349 |
$3,545,581 |
| Admin. Expenses /% |
8.26% |
9.60% |
8.13% |
7.54% |
8.09% |
 |
 |
 |
 |
 |
 |
In addition to controlling expenses, over the same period, the
Montana Lottery's transfer to the State general fund and its
percentage to revenue has been:
Transfers
 |
 |
 |
 |
 |
 |
| Transfer to Gen. Fund/$ |
$8,115,602 |
$6,222,555 |
$9,110,455 |
$11,420,242 |
$11,028,563 |
| Transfer to Gen. Fund/% |
22.09% |
18.39% |
22.82% |
27.47% |
25.16% |
 |
 |
 |
 |
 |
 |
Our Annual Reports contain more detail. If you want
additional information about the Lottery’s finances, please
contact us.
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