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The Kansas Lottery reported to the Kansas Lottery Commission at its monthly meeting in Topeka today that in Fiscal Year 2018 the Lottery nearly matched the all-time combined transfer record for traditional lottery and casinos.

Total revenue transferred to the State through the sale of traditional lottery games was $74.7 million.  Revenue transferred from the four casinos with state-owned and state-operated gaming totaled $89.0 million.

Combined, traditional lottery and casino revenue totaled $163.7 million transferred to the State in Fiscal Year 2018. That was only slightly below the record combined transfer of $163.9 million in Fiscal Year 2016.

Traditional lottery sales in Fiscal Year 2018 (July 1, 2017 – June 30, 2018) were $283.2 million (unaudited).  That’s 4.35 percent ahead of last year’s sales of $271.4 million. 

“I’m grateful to our retailers, staff and players for the good year we’ve had,” said Kansas Lottery Executive Director Terry Presta.  “Instant tickets continue to grow as our biggest category. We are up in the two big multi-state jackpot games Powerball and Mega Millions, and sales show players are enjoying our new games, Lotto America and Lucky for Life.”

“While I’m very pleased with this year’s results, it’s next fiscal year that’s going to be the real game changer,” continued Presta.  “The Kansas Lottery hopes to have vending machines in stores sometime next calendar year, and our new partner Scientific Games is providing us with a brand new state-of-the-art gaming system with incredibly fast terminals and a whole new central system that’s scheduled to go live at the end of this month. These changes will help create revenue next year and in years to come.”   

Traditional Lottery

Here’s a breakdown of FY18 traditional lottery sales, by game, compared to FY17 sales:

Veterans Games

Included in the traditional lottery Fiscal Year 2018 transfer is $1,028,373 from the sale of special $1 and $2 Veterans Benefit instant scratch tickets. Proceeds from the sale of Veterans tickets are directed to state programs that provide benefits to Kansas Military veterans.  Programs include the Veterans Enhanced Service Delivery Program, National Guard scholarships and Kansas Veterans homes and cemeteries.

Expanded (Casino) Gaming

The $89.0 million transferred to the State from state-owned and -operated casino gaming in Fiscal Year 2018 includes revenue from four casinos.  This was the first full fiscal year of operation for the Kansas Crossing Casino near Pittsburg in the Southeast Kansas Gaming Zone, which opened March 29, 2017.

In addition to $89.0 million in total transfers to the State from the four casinos, $12.1 million went to local units of government and $8.1 million to the Problem Gambling & Addictions Grant Fund.

Here is the distribution of revenue at Boot Hill Casino & Resort in Dodge City in FY18:

*1.5% to City of Dodge City and 1.5% to Ford County

 
Here is the distribution of revenue at Kansas Star Casino in Mulvane in FY18:

*1% to City of Mulvane, 1% to Sumner County, and 1% to Sedgwick County

Here is the distribution of revenue at Hollywood Casino at Kansas Speedway in Kansas City, Kans., in FY18:

*3% to the Unified Government of Wyandotte County and Kansas City, Kans.

Here is the distribution of revenue at Kansas Crossing Casino in Pittsburg, Kans., in FY18:

*1% to City of Pittsburg, 1% to Cherokee County, and 1% to Crawford County

“The four casinos are generating millions of dollars for good causes,” said Presta. “I want to thank the casino managers and their staffs for the hard work they do in competitive markets and express gratitude to the casino players for their patronage.”  

Where Does the Money Go?

Traditional Lottery Revenue
Traditional lottery revenue goes into the State Gaming Revenues Fund. On a yearly basis, the first $50 million is divided by a formula which first transfers $80,000 to the Problem Gambling and Addictions Grant Fund. Then 85 percent of the balance is transferred to the Economic Development Initiatives Fund, 10 percent to the Correctional Institutions Building Fund, and 5 percent to the Juvenile Detention Facilities Fund. Any receipts in excess of $50 million must be transferred to the State General Fund.

The Economic Development Initiatives Fund supports state programs that create and retain jobs in Kansas. Those include Kansas Department of Commerce programs, Tourism and Parks programs in the Kansas Department of Wildlife & Parks, the Kansas Board of Regents for vocational education programs, and many more.

Expanded Lottery (Casino) Revenue
The 2007 Kansas Expanded Lottery Act created the Expanded Lottery Act Revenues Fund (ELARF). The State’s share of revenue from state-owned and -operated casino gaming is transferred from the ELARF for purposes of reduction of state debt, state infrastructure improvements and reduction of local ad valorem tax; and/or for other purposes as directed by the Kansas Legislature, such as Kan-Grow Engineering Funds at state universities and the reduction of unfunded actuarial liability of the Kansas Public Employees Retirement System (KPERS).

NOTE: All revenue figures are unaudited.