INDIANAPOLIS — A record-breaking Powerball jackpot and a reduced target helped the private operator of the Hoosier Lottery hit its income goal for the first time since taking over sales and marketing more than three years ago.
Members of the State Lottery Commission learned Tuesday that IGT Indiana, formerly GTECH Indiana, produced $285.8 million for the lottery during the 12-month period that ended June 30.
That was more than the $270 million minimum income needed for IGT Indiana to avoid another shortfall penalty, but less than the $290 million that would have entitled the company to a bonus on top of its approximately $13 million annual management fee.
For the 2017 budget year, which began July 1, IGT Indiana must produce a minimum of $290 million in income and will equally split with the lottery all earnings greater than $295 million, according to the June 2015 revised privatization contract.
Under the original 2012 deal, IGT Indiana pledged to earn at least $360 million in 2016 and $410 million in 2017.
That contract was revised shortly before the company fell $88 million short of its 2015 minimum income of $320 million.
The $285.8 million earned this year will, after deducting state lottery expenses, provide $281 million to Indiana — an all-time record.
Lottery profits give Hoosiers an annual vehicle excise tax credit, fund state building projects and support teacher, police and firefighter pensions.
“We are extremely pleased with these results and the success of the lottery under our amended service agreement with IGT Indiana,” said William Zielke, State Lottery Commission chairman.
“This public/private model for the Hoosier Lottery is serving our state well and helping us fulfill our mission to provide important funds for the state of Indiana.”
Lottery financial records show sales during the 2016 budget year totaled $1.21 billion. That was $167 million more than 2015.
Powerball revenue grew $45 million year over year to $131 million, thanks in large part to a $1.6 billion jackpot won in January — the largest lottery prize in world history.
Hoosiers also purchased $110 million more in scratch-off games compared to 2015, spending $870 million altogether.
Lottery winners received approximately $772 million in prize payments during the 2016 budget year.
The 4,500 lottery retailers collected some $82 million in commissions.