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Report: Rhode Island Profited $369 Million from RI Lottery Proceeds in FY 2016

10/11/2016

The Rhode Island Lottery paid $369.8 million to the state’s General Fund for the year ended June 30, 2016, according to the Lottery’s audited financial statements. The amount paid to the General Fund represents the Lottery’s net income after payment of prize awards, commissions, and operating expenses.

The Lottery’s financial statements for the fiscal year ended June 30, 2016, and the Independent Auditor’s Report thereon are included in a report issued by Auditor General Dennis E. Hoyle and released today by the Joint Committee on Legislative Services. The auditors concluded that the Lottery’s financial statements were fairly presented in accordance with accounting principles generally accepted in the United States of America.

Click here to access the full report and here for a summary

The total amount transferred to the state for Fiscal 2016 decreased $12.2 million compared to the year ended June 30, 2015. The Lottery’s gross profit from gaming operations before operating expenses totaled $379.8 million for the fiscal year ended June 30, 2016. Video lottery accounted for $293.2 million or 77.2 percent of total gross profit.

Net video lottery revenue decreased approximately 5.3 percent compared to the prior year. Online revenue increased 7.9 percent and Instant Ticket revenue increased 6.4 percent over prior year amounts. The Lottery’s operating expenses totaled approximately $11.6 million for the year ended June 30, 2016.

Net revenue from Twin River table games totaled $125.8 million, an increase of 18.0 percent for the year ended June 30, 2016 — the third full year of table game operations. After commissions paid to Twin River and the Town of Lincoln, the state’s share of net revenue from table games amounted to $20.1 million.

The Lottery disclosed certain contingencies related to the potential risk to gaming operations from competition in nearby states.
The Auditor General also issued the Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The audit found no matters required to be reported under Government Auditing Standards.