Lottery's December up for sales, proceeds

$4.4M Saturday Powerball haul a state best

Eric Ward (left) buys a lottery ticket from manager Harold Tunious on Monday afternoon at the D & J Mini Mart at 18th and Main streets in North Little Rock.
Eric Ward (left) buys a lottery ticket from manager Harold Tunious on Monday afternoon at the D & J Mini Mart at 18th and Main streets in North Little Rock.

The Arkansas Scholarship Lottery's revenue and net proceeds raised for college scholarships increased in December from a year ago, before the Powerball jackpot reached several hundred million dollars at the start of this year and fueled the lottery's ticket sales.

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Manager Harold Tunious works behind the register at the D & J Mini Mart at 18th and Main streets in North Little Rock as a sign displays the record Powerball jackpot amount as of Monday afternoon.

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Arkansas Democrat-Gazette

Graph showing information about Arkansas Powerball ticket sales.

The Powerball jackpot was at $1.4 billion Monday, and the next drawing is Wednesday night for the game.

The Arkansas lottery sold a record $4.4 million in Powerball ticket sales on Saturday, when the jackpot totaled $900 million for that night's drawing, said lottery Director Bishop Woosley. The previous record was $3.3 million in Powerball tickets sold on Nov. 28, 2012, when the jackpot was $587 million.

The lottery also sold a record total of $19.9 million in scratch-off and draw game tickets last week -- exceeding the $15.4 million sold in the week ending April 1, 2012, after the Mega Millions jackpot reached $656 million, lottery officials said.

Powerball tickets are sold in 44 states, plus Washington, D.C., Puerto Rico and the U.S. Virgin Islands.

Arkansas' lottery has helped finance more than 30,000 Arkansas Academic Challenge Scholarships each of the past six fiscal years. It started selling tickets Sept. 28, 2009.

The lottery's revenue and net proceeds for college scholarships have dipped each of the past three fiscal years, after peaking in fiscal 2012. The Arkansas Legislature has cut the size of the scholarship for future recipients three times in recent years, partly because of the lottery's net proceeds falling short of initial projections.

But the lottery's revenue and net proceeds in the first six months of fiscal 2016 are both up from the same period in fiscal 2015. Fiscal years start July 1.

The lottery's revenue in December increased by $4.1 million from a year ago to $38.6 million, while the lottery's net proceeds for college scholarships increased by nearly $1 million from a year ago to $6.4 million, the lottery reported Monday in its monthly report to Gov. Asa Hutchinson and the Legislature's lottery oversight committee.

In December, the lottery's scratch-off ticket revenue increased by $3 million from a year ago to $32 million, while the lottery's draw-game ticket revenue increased by $1.1 million from a year ago to $6.5 million, the lottery reported.

The lottery's draw games include Powerball, Mega Millions, the Natural State Jackpot, Cash 3, Cash 4, Lucky for Life and Fastplay.

Woosley attributed the increased ticket revenue in December from a year ago to stronger sales in scratch-off ticket sales and Powerball and Fastplay tickets.

"Each of these products had increased popularity, which translated into significantly stronger sales" in December 2015 over December 2014, and the increase in ticket sales meant a significantly larger amount for college scholarships over a year ago, he said.

During the first six months of fiscal 2016, the lottery's revenue increased by $13.9 million from the same period in fiscal 2015 to $205.2 million, the lottery reported. Scratch-off ticket revenue increased by $12.6 million from the same period in fiscal 2015 to $169.8 million, and draw-game ticket revenue increased by $1.3 million to $35 million. The lottery's other revenue includes retailer fees, such as applications fees.

Woosley noted that the lottery's scratch-off ticket sales have increased during 14 of the past 18 months at the lottery.

During the first six months of fiscal 2016, the lottery's net proceeds for college scholarships increased by $3.5 million from the same period in fiscal 2015 to $36 million, the lottery reported.

The lottery reported an unclaimed-prize balance of $3.49 million on Dec. 31.

Act 1180 of 2011 requires that unclaimed-prize money, minus $1 million, be transferred to the state Department of Higher Education's scholarship account on the last day of each fiscal year.

Woosley, who has been the lottery's director since February 2012, has projected that lottery revenue will be $411 million and net proceeds for college scholarships will be $79.5 million in fiscal 2016 -- up from $409.2 million and net proceeds of $72.4 million in fiscal 2015.

Woosley said Monday that the lottery is on target to meet its current projections for fiscal 2016 because of "the product, advertising and retail changes that we put into place in the spring and summer 2014.

"That, combined with lower gas prices and cuts to expenses that were implemented by the governor and the Legislature over the past 12 months, have contributed to improved overall performance," he said.

Last February, Hutchinson and the Legislature enacted legislation to place the lottery under the control of the state Department of Finance and Administration and eliminate the nine-member Arkansas Lottery Commission that oversaw its operations.

Camelot Global Services was hired by the state to produce a proposed business plan by a March 8 deadline under the terms of its consulting contract with the lottery. The firm has offices in London and Philadelphia.

"We're confident that our continued partnership with Camelot will help us build on this momentum and create plans for continued long-term growth and stability," Woosley said.

Under the contract, the consulting firm will receive base compensation and expense reimbursements up to $750,000 a year, but it also will be eligible for incentive compensation of at least 12.5 percent of the lottery's adjusted operating income above $72.28 million in a fiscal year. The contract also calls for Camelot to help the lottery implement the business plan and renegotiate contracts with vendors; the savings would be used to help pay for Camelot's services. The contract runs through June 30, 2020, with options for two one-year extensions.

Jerry Cox, president of the Family Council, said he doesn't believe that the lottery is any better under the control of the Hutchinson administration.

"The lottery is still a failure [and] their numbers are pathetic," he said, asserting that the lottery should, among other things, increase the percentage of its revenue going to scholarships and reduce its prizes.

Meanwhile, Woosley said he's certain that Powerball's $1.4 billion jackpot will be raised again.

Under the cash option, the winner would receive $868 million, before taking out state and federal taxes. Under the annuity option, the winner would receive the full jackpot amount, minus state and federal taxes, on the first and annual payments -- 30 payments over a 29-year period.

The odds of winning the jackpot are 1 in 292.2 million. The overall odds of winning any prize are 1 in 24.9.

The lottery On drawing days, the lottery sold $433,969 in Powerball tickets on Jan. 2 ,when the jackpot was $334 million, and $2.12 million last Wednesday, when the jackpot was $500 million, before selling $4.43 million on Saturday, when the jackpot was $900 million, according to Woosley.

The Double Quick No. 79 store is Lake Village sold the most tickets Saturday among Arkansas lottery retailers -- $25,067 -- Woosley said.

Store manager Valerie Mack said the store sold many tickets Saturday to residents of Mississippi, which doesn't have a state lottery.

"We are busy with lottery sales. I don't have the time to talk to you," she told a reporter late Monday afternoon.

A Section on 01/12/2016

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