Hoosier Lottery Celebrates Reaching $6 Billion In Total Revenue

The state of Indiana has generated over $6 billion in revenue through the Hoosier Lottery.

Since its inception in 1989, the lottery has continued to snowball, delivering an incredible return.

Recently, Sarah Taylor, the Executive Director of the Hoosier Lottery, expressed her gratitude to lottery players across the state for their role in the lottery’s growth.

It’s astounding to think that over 30 years have passed since the first Scratch-off ticket was sold. We take immense pride in the fact that the Hoosier Lottery has contributed over $6 billion back to Indiana during this time, including donations to the Teachers’ Retirement Fund and local police and firefighter pensions. Such achievements could not have been realized without the continuous backing of our players and retailers across the state. For this, we are profoundly grateful.

Big sales numbers provided by scratch-off tickets

The surge in scratch-off ticket sales in Indiana has significantly contributed to the growth of the lottery.

During the lottery’s fiscal year 2020, Hoosiers purchased scratch-offs valued at over $1 billion.

The Hoosier Lottery commences its budget years midsummer, hence Indiana has been in the 2021 fiscal year since the previous July.

The current budget year is already poised to shatter the previously set figures.

Sales for scratch-off tickets increased by 31% during the first third of the budget year, reaching $423 million.

The pandemic and the increase in self-service machines were primarily responsible for that.

When major sports leagues shut down and casinos closed, playing the lottery became the only gambling option in Indiana.

Even when things reopened, the availability of self-service kiosks in grocery stores provided Hoosiers with a gambling alternative that avoided large public gatherings.

This also resulted in a surge in draw game sales in the first third of the budget year. During that four-month span alone, sales rose by more than $100 million.

The Hoosier Lottery has set new revenue records due to strong sales numbers.

Hoosier Lottery revenue booming

The complete budget details for the entire year are not available yet, but some intriguing figures were disclosed by the State Lottery Commission at its most recent meeting.

Thus far, the Hoosier Lottery is generating record-breaking revenue numbers in every aspect.

The data encompasses the initial seven months of the budget year, spanning from July 2020 to January 2021.

During that seven-month period, lottery revenue saw an increase of more than 27% compared to the same period in the previous budget year. This 27% surge contributed to new revenue of $210 million.

Scratch-off sales are once again leading the way.

During the same period, the Hoosier Lottery’s scratch-off revenue increased by 29% from the previous year, reaching a total of $169 million.

Those numbers skyrocketed due to holiday games.

During the holiday season, the Hoosier Lottery conducts special scratch-off promotions. The winter months of 2020 once again established a new record.

The “$10 Holiday Game” scratch-off made a comeback in 2020, achieving the highest ever sales for a $10 game in Indiana in its initial 13 weeks. In general, sales of holiday games saw an increase of 8%.

On Feb. 8, the Hoosier Lottery also achieved a new record by crossing $1 billion in sales, marking the earliest date this milestone has been reached.

As the Hoosier Lottery experiences record revenues, it implies that more tax money is being directed to the state.

Compared to the previous year, the first seven months of the budget year generated an additional $46 million in surplus revenue for Indiana.

Where is the tax money from Hoosier Lottery directed?

The record numbers of the Hoosier Lottery are generating a large amount of tax revenue.

Indiana is pleased with the additional income from gambling tax, but how does that state utilize it?

A significant portion of the money is directed towards the pensions of local firefighters and police officers. Similarly, a substantial part is channeled towards the Teachers’ Retirement Fund.

The Hoosier Lottery donated $30 million to both of those areas during the 2020 budget year.

The majority of the Hoosier Lottery’s revenue, after deducting lottery winners’ payouts and staff salaries, is used to offset vehicle excise taxes.

The state legislature’s decision back in the 1990s is largely responsible for this.

At the time, lawmakers resolved to cut the Vehicle Excise Tax, a tax that influences the cost of car registration fees in Indiana. Since that decision, the shortfall from the excise tax reduction has been compensated with lottery tax revenue.

In 2018 alone, Indiana expended over $236 million on the replacement of Motor Vehicle Excise Tax.

Keeping the cost of vehicle registration low benefits Hoosiers throughout the state. After all, in the Crossroads of America, car ownership is practically a necessity, making cost reduction a priority for the state.

The remainder of the lottery tax revenue is divided and allocated to a few other areas, such as state-wide education programs.

If the Hoosier Lottery continues to break revenue records, Indiana’s budget will keep receiving more tax money than ever.