Iowa Lottery up 15.7 percent over last year

Des Moines Register

William Petroski

Aug 1, 2012

A slew of million-dollar jackpot winners helped the Iowa Lottery rake in hefty profits over the past year, totaling $78.8 million, up 15.7 percent from a year earlier.

Even high gasoline prices and a sluggish national economy, which have hurt lottery sales in the past, didn’t stop Iowa Lottery players from indulging in sales of $310.9 million for scratch tickets, pull-tabs, chances on Powerball and other games. The preliminary figures reported Tuesday are for the 12 months ending June 30.

“In the era of recessions, people look for simple pleasures, and we are low-cost, and we are local,” said Iowa Lottery Chief Executive Officer Terry Rich.

Another factor that spurred sales is that the Iowa Lottery had lots of big jackpot winners, which generated more attention than usual, Rich said. There were 12 prizes of at least $1 million, including a $241 million jackpot in June that was jointly claimed by 20 Quaker Oats workers from Cedar Rapids. The Iowa Lottery also attracted international news coverage in December and January, when a claim was mysteriously filed and subsequently withdrawn for a $14.3 million Hot Lotto jackpot.

“In some ways, it was a building effect. More people are playing, and just by pure odds more people are winning,” Rich said. “That just translates to others taking a look and spending a few dollars and trying their luck.”

Prizes paid to Iowa Lottery players over the past fiscal year totaled $182.4 million.

Besides the $78.8 million in state profits, the Iowa Lottery generated $9.9 million in state taxes withheld from jackpot winners. Most of the money will be spent on general state government operations, such as education, public safety and welfare programs. However, some lottery money helps the Vision Iowa program, which has financed community and tourist attractions, and a portion is used for military veterans’ programs.

Rich said he agrees with experts who predict a digital future for lottery games, particularly as Iowans do more business with smartphones. He believes the Iowa Lottery already has legal authority to sell lottery tickets online, but he has no immediate plans to do so.

“I think you want to have a few things left in the quiver and let others test it and look at it,” Rich said. “When needed, we will look at it together with the governor and the Legislature. But what we are doing now is working well, and we will continue to do that in a socially responsible way.”