Audit: Iowa Lottery Revenues Dropped Nearly 5% As Pandemic Isolated Gamblers

Des Moines IA

22 December, 2020

12:55 PM

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the Iowa Capital Dispatch By Perry Beeman December 21, 2020 A state audit has confirmed that the Iowa Lottery saw a dip of just under 5% in operating revenue last budget year and funneled less money to the state general fund. State Auditor Rob Sand's report covering the budget year ending June 30 included the first few months of the coronavirus pandemic. A 4.86% drop in revenue from the previous year's level led the lottery authority to send 12.7% less to the state's general fund. The lottery sent the general fund $78.9 million, down from $90.4 million the year before. The allocation to the Veterans Trust Fund remained at $2.5 million. Among the biggest percentage drop in audited revenues among the lottery's games were Mega Millions, down 43.7%; Powerball, down 33.6%; and Lotto America, down 22.9%. Mary Neubauer, the Iowa Lottery's vice president for external relations, said sales lagged for the national lotto games due to the coronavirus pandemic and the fact many Americans weren't at lottery outlets as much as usual. Iowans continued to snap up scratch tickets, however. "Scratch tickets had a strong year," Neubauer said. "People were home more, looking for more entertainment." When they weren't emptying store shelves of puzzles and board games, Neubauer said, some were trying their luck with scratch tickets, traditionally the Iowa Lottery's biggest seller in part because the odds of winning a prize are higher than with national lotteries. Neubauer noted that while revenue was down, the Iowa Lottery met its budget, keeping expenses below budget. As the year ends, lotto sales are picking up a bit, because both major games have large jackpots, she added. Sales for multistate lotteries such as Mega Millions and Powerball often are influenced by whether exceptionally large jackpots are offered because no one has won in a while, Neubauer said. The audit found no problems with the lottery's financial dealing. Sand noted the authority spent 1.8% of revenue, or $6.8 million, on media purchases and advertising production. The lottery is allowed by law to spend up to 4%. The lottery had reported earlier that it had a drop of 4.8% in revenues for the year that ended June 30, based on unaudited figures. The Iowa Capital Dispatch is a hard-hitting, independent news organization dedicated to connecting Iowans to their state government and its impact on their lives.