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Massachusetts State Lottery breaks sales and profit records in 2021

News

The Massachusetts State Lottery recorded an all-time record profit of $1.105bn in its 2021 fiscal year, consisting of the twelve months to June 30, 2021.

The operator narrowly surpassed its previous record of $1.104bn set in the 2019 fiscal year.

Revenue came in at another record high of $5.83bn, compared to the previous record of $5.51bn in 2019. This year marks the seventh consecutive year that revenues have surpassed the five billion dollar mark.

The impact of the novel coronavirus (Covid-19) pandemic saw revenue and profit for the fiscal year 2020 drop, to $5.26bn and $986.9m respectively.

Figures for 2021 have not yet been formally audited, but the Lottery said it does not expect them to change substantially when the review process is complete.

The operator’s network of retailers earned an estimated $333.3m in commissions and bonuses, which also eclipsed the previous record of $314.5m set in 2019.

Instant ticket sales brought in $4.03bn, marking the first time the product has brought in over $4bn, and beating 2019’s record of $3.67bn. Sales of instant tickets were up 10.5% on 2020’s figure of $3.65bn.

Keno product sales also enjoyed an all-time high during the period, bringing in $1.06bn, 8.0% ahead of 2020’s figure and narrowly surpassing the previous record which was also set in 2019.

The operator said sales of Mega Millions and Powerball increase by a combined total of over $60m, encouraged by a sequence of draws that culminated in January with advertised jackpots of $730m and $1bn.

An estimated 73.5% of all revenue was returned to players during the period, marking a record $4.28bn paid out in prizes. This was well ahead of the previous record of $3.99bn paid out in 2019.

The Lottery awarded 208 prizes valued at $1m or more, including 38 prizes of $2m or more.

Administrative costs were less than 2.0% of overall revenue, suggesting expenses of $116.5m or less.

“Despite the pandemic, this year the Lottery experienced record setting sales,” said state treasurer Deborah B. Goldberg, chair of the Massachusetts State Lottery Commission.

“Thanks to our lottery team, retail partners and particularly our customers, we will again be able to deliver critical resources to every community in the state.”

Michael Sweeney, the Lottery’s executive director, added: “I greatly appreciate the collective efforts made by Lottery team members, our retail partners and our customers to maintain safe environments at our claim centers and retail locations under unique circumstances.”

Sweeney concluded that thanks to this cooperation, the Lottery contributed a record amount of support to small businesses, cities and towns across the state.