Hoosier Lottery could see record-high revenue again this year

in Lottery

The Hoosier Lottery is predicting record-high revenue for fiscal year 2019 after exceeding the $1 billion threshold in March—the earliest point it has reached that milestone.

The bottom line for the state—an estimated $309 million from the total lottery proceeds—also would be a record.

According to a financial report presented to the Hoosier Lottery Commission on Tuesday morning, IGT Indiana, formerly known as Gtech Indiana, has already sold $1.12 billion worth of tickets in the 2019 fiscal year as of April 30. 

IGT Indiana expects that to increase to $1.33 billion before the fiscal year ends on June 30. That would set a record for the Hoosier Lottery.

Those sales could result in a “provider net income” of $323 million—$23 million higher than the $300 million minimum threshold for IGT Indiana to avoid paying a penalty and 5.6% above what the lottery had budgeted for 2019. (Provider net income refers to total revenue minus prizes paid out and game and provider expenses.)

The 15-year contract outlines minimum net income amounts that IGT Indiana must hit in order to avoid paying a penalty, as well as incentive net income amounts that would trigger an incentive payment.

IGT Indiana received its  first incentive bonus last year—the first time since contracting with the state in 2012—and is on track to receive an incentive payment again this year.

For fiscal year 2019, the incentive payment threshold is $305 million. If the estimates hold, IGT Indiana will receive half—or $9 million—of the excess income, and the Hoosier Lottery will receive the other half.

That would be slightly lower than last year’s incentive payment of nearly $9.2 million. 

Next year, the minimum income target stays at $300 million, but the incentive mark increases to $310 million.