Hoosier officials announced Tuesday that the company has transferred $306 million to state coffers for the recently ended fiscal year. That’s about $6 million more than the minimum required under the state’s lottery contract with IGT Indiana to avoid paying a shortfall.
Lottery Proceeds At Record High In Indiana
The private company running most of Indiana’s lottery operations has generated a record profit this past year. However, it still falls short of its initial goal.
Indiana makes a record $306M in proceeds however still didn’t meet its initial goal.
The private company running most of the Hoosier operations generated a record-setting profit this past year. It earned its first incentive payment since the state decided to outsource most of its lottery operations more than five years ago.
Still, the net profit was nowhere near the target amount promised in the company’s initial lottery bid.
Preliminary numbers released Tuesday, Hoosier sold $1.27 billion worth of tickets in the fiscal year ending in June. This resulted in a total net income of $318.2 million. That is $18.2 million more than the $300 million required under the state’s updated lottery contract needed to avoid paying a shortfall.
Exceeding the $300 million incentive net income threshold also earned IGT Indiana its first incentive payment under the 15-year contract. The company was paid $9.1 million.
But the record-setting profit still wasn’t enough to meet IGT Indiana’s initial target.
The state’s proceeds go towards the State Teachers Retirement Fund, police and firefighters’ pensions. They aim to reduce the auto excise taxes. Prior to the outsourcing of most Hoosier Lottery operations, the lottery contributed over $205 million to the state in fiscal year 2012.
The company was required to bring in a net profit of $410 million by the end of June 2018. The “provider net income” still hasn’t reached the $320 million goal.