In April, the Arkansas Scholarship Lottery set a record for total revenue collected for college scholarships at $49.5 million, up from $43.9 million in April 2019, according to state data. The new record was driven by lower gas prices and the closure of the state’s three casinos and other businesses due to Covid-19.
Scratch-off ticket revenue rose from $37.2 million in April 2019 to $43.6 million last month, but draw-game revenue fell from $6.6 million to $5.9 million last month. “Draw game sales have been decreasing all year long as a result of the lack of larger jackpots,” Lottery Director Bishop Woosley said. He noted scratch-off ticket revenue this year has been ahead of its record pace from fiscal 2019 and the trend continued into April. “In addition, we launched an oversized Break the Bank ticket in the middle of April which increased sales as well,” he said.
Draw games include Powerball, Mega Millions, Natural State Jackpot, Cash 3, Cash 4, Fast Play and Lucky for Life.
Last month the amount raised for college scholarships totaled $8.3 million, up from $8.1 million in April 2019. The record $8.3 million for April was set in 2011. For the first 10 months of the fiscal year, through April 30, scratch-off ticket revenue was $354 million, up from $343.6 million in the same period in fiscal 2019. Draw-game revenue totaled $63.8 million, down from $92.3 million, according lottery figures. Total revenue is $418.2 million for the period, down from $436.6 million in the same period in fiscal 2019. The amount raised for college scholarships has reached $65.8 million, a decline of $76.5 million from the same period in 2019.
Lottery revenue includes fees paid by its 1,974 retailers who were selling tickets on April 30.
Woosley said lower gas prices “likely had a lot to do with the increase in total sales as we have not seen gas prices this low in a long time. You also would have to think the closing of the casinos had a positive impact on our sales.” Southland Casino Racing in West Memphis, Oaklawn Racing Casino Resort in Hot Springs and Saracen Casino Annex in Pine Bluff closed in mid-March due to Covid-19.
“Even in times like these, people need some entertainment and I think some of them have found that in running to the store and grabbing a few scratch-off tickets so they can have a little fun at home,” Woosley said. “I would not be surprised if we fared better than what we have budgeted. The impact of the casinos was included, but the uncertainty and the economic conditions weighed the most in our process.”
Launched on September 28, 2009, the lottery has helped finance more than 30,000 Arkansas Academic Challenge Scholarships during each of the past nine fiscal years.
