 |
| |
 |
|
|
|
|
Gaming - May 2004
There were two scratch-off tickets offered on that first day of sales. Now, 15 years later, the Kentucky Lottery Corporation (KLC) has provided a tangible benefit to the Commonwealth in excess of two billion dollars. “Thanks to our incredible network of retailers and the confidence the people of Kentucky have shown in our games, we’ve been able to achieve great heights”, said KLC’s President and CEO Arch Gleason. “It’s exciting to know how we’ve benefited the Commonwealth over these past 15 years, and we look forward to continued success despite an increasingly competitive marketplace and challenging atmosphere.” In February, the KLC reached another major milestone when it turned over its two billionth dollar in proceeds to Kentucky. When first started, the lottery was projected to turn over $65 million annually to the Commonwealth. Had that been the case, it would have taken nearly 31 years to reach the billion-dollar mark. Instead, KLC has reached that milestone in half the time. All decisions on how to spend lottery proceeds are made by the Kentucky General Assembly. In 1998, legislators enacted a seven-year plan to shift lottery dividends to scholarship programs benefiting the Commonwealth’s high school students. “There’s no question economic development and economic prosperity is the focus of this administration,” Governor Ernie Fletcher said at a recent news conference. “That’s why I think it’s very important that it we look at the two billion dollars that has come to the Commonwealth from the Kentucky Lottery, that we can be proud of how that money has been invested, and how it will be invested in the future.” Since the start of the program, a little more than $400 million has gone to pay for need-based and merit-based scholarships over the past five years. As a result, more than 364,000 financial awards to Kentucky high school students have been made. “The Kentucky Lottery is instrumental in providing much-needed funds for Kentucky’s need-based and merit-based student financial aid programs,” said KHEAA Executive Director Dr. Joe L. McCormick. “Kentucky Educational Excellence Scholarships (KEES), College Access Program (CAP) Grants, and Kentucky Tuition Grants (KTG) help thousands of Kentucky students pay for their higher education expenses each year. These programs have set the Commonwealth on the right track to increasing the college-going rate and improving the quality of life of our citizens.” Also, starting this fiscal year, all unclaimed prize money will go into the KEES Reserve Fund to help maintain the financial stability of the organization. It’s estimated around $9,500,000 a year will go into this fund annually. Kentucky’s Early Childhood Reading Fund and the Collaborative Center for Literacy Development receive $3 million a year, with a total of $15 million going to these programs since inception. This contribution will continue, with the $3 million coming off the top of lottery proceeds and the remainder going for the scholarship and grant programs. Proceeds have gone to a variety of causes since lottery tickets were first sold in Kentucky. They include:
The KLC has achieved these impressive sales numbers while also making an effort to offer games in a responsible manner. Since 1996, the organization has worked closely with the Kentucky Council on Problem Gambling (KYCPG) to sponsor counselor training and public awareness programs in the state. The KYCPG not only works to provide help to those who need it, they also look to increase assistance for problem and compulsive gamblers. KYCPG training has led to an increase in the number of certified gambler counselors in Kentucky from one in 1995 to 10 today. While overall KLC sales and dividends have shown a steady increase in almost every year, challenges certainly lie ahead. The state with Kentucky’s longest contiguous border has launched their own lottery, and the Tennessee Education Lottery could cost the KLC up to $75 million in annual sales in just a few years. “That’s about 11 percent of our overall sales,” said Gleason. “While we’re continuing to improve our core products – and in fact our instant tickets have already shown more than a 13 percent sales increase this fiscal year – we’ve got our work cut out for us.” Since its inception, the Kentucky Lottery Corporation has sold more than $7.7 billion in tickets, with more than $4.5 billion (nearly 60 percent) going to player prizes. Retailers across the state have also enjoyed nearly $471,000,000 in commissions from selling and cashing tickets. During this same period, only 7.9 percent of overall sales have been used for marketing and operating expenses.
Back to May Issue The Lane Report is a trademark of Lane Communications Group. All other trademarks are the property of their respective owners.
|
|
|
|
|
Many Kentuckians well remember a trip they felt they had to make on April 4th, 1989. On that date, people were hot on the lookout for a single word in the windows or on the marquees of local stores – “lottery.”
In this current fiscal year, 80 percent of KLC proceeds will go to the KEES, CAP and KTG programs. KEES supports merit-based scholarships, while CAP and KTG are based on need. By fiscal year 2005-06, 55 percent of lottery revenue will fund need-based grants, while the remaining 45 percent of revenue will go toward merit-based scholarships.