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Study finds Michigan Lottery one of most efficientby Acting Commissioner Jim Kipp
Five different rating factors were used in the study:
sales as a percentage of personal income, revenue as a percentage of
sales, revenue as a percentage of gross revenue, cents spent to generate
one sales dollar, and cents spent to generate one government dollar.
Ranking high in all of these categories is very difficult
for any state lottery. The Michigan Lottery is one of only eight lotteries
in the U. S. to be ranked 11th or better in all five categories. The Lottery is a proud supporter of K-12 public education
in Michigan, and that support was shown in its 38.3 percent return of
sales back to the state School Aid Fund. This measure highlights the
good balance between prize payouts and sales that Michigan Lottery maintains,
and shows its ability to keep costs low to raise maximum funds to support
Michigan’s schoolchildren. Only the state lotteries of Florida
and Pennsylvania ranked ahead of the Michigan Lottery in this category.
In fiscal year 2002, the Lottery generated more than
$613 million in revenue for the state School Aid Fund. On average, that
is approximately $11.7 million going into the state School Aid Fund
every week, or $1.68 million per day. Every time a Lottery player purchases
a ticket, an average of 35 to 38 cents of that dollar goes to the state
School Aid Fund. The IGWB report stated that “effectiveness
and efficiency are often conflicting goals, and as a result, lotteries
that perform well by both measures are rare. Michigan was a very good
performer during the year.” The Michigan Lottery is proud of its ranking in the
IGWB study and strives to maintain its high efficiency ranking to
ensure that the maximum amount of funds possible are transferred to
the state School Aid Fund. I would like to thank all of the Lottery’s retailers
for their hard work in promoting our products. Your commitment to selling
Michigan Lottery products remains key to helping the Michigan Lottery
achieve its efficiency status. 2004 Budget The addition of these two new games was instrumental
in helping to restore the $6,700 per-pupil K-12 foundation grant in
full. Gov. Granholm considers the restoration of this grant to be her
proudest accomplishment in the budget. The introduction of “Quick
Draw Keno” and “Break Open” tickets is contingent upon
the legislature’s approval of the FY 2004 budget. Mega Play Lottery retailers will earn an additional 20-percent
commission for each five-panel wager sold during the promotion. The
“Mega Play” promotion ends May 23, 2003. I encourage you to
“ask for the sale” during the promotion. Unclaimed Ticket If Michigan Lottery prizes are not claimed by the one-year
deadline, they revert to the state School Aid Fund. For more information
about any unclaimed Michigan Lottery prize, players can call 517.335.5640. New Instants On May 1, two great new games hit stores: the $2 “Lots
O’ Spots Bingo” with a $25,000 top prize and the $1 “Michigan
Lighthouses” with a $5,000 top prize. “Daddy Morebucks,” a $2 ticket featuring a
$20,000 top prize, goes on sale May 8. Players will get the opportunity
to be lifetime Lottery winners on May 15 when the $5 “Jackpot for
Life” debuts with a $1,000-per-week-for-life top prize. On May 22, the $10 “Cool Millions” instant
game with a whopping $1,000,000 top prize and the $1 “Sunny Money”
ticket featuring a $2,000 top prize will hit store counters statewide.
Finally, the $2 “Scavenger Hunt” instant ticket with a $30,000 top prize goes on sale May 29. |
At 30 years old, the Michigan Lottery is not only one of the most mature
lotteries in the nation, but according to a major gaming industry publication,
it is also one of the most efficient.