LANSING, Mich., March 17 /PRNewswire/ -- The Michigan Lottery is not only
 one of the most mature lotteries in the nation (at 30 years old), but
 according to a major gaming industry publication, it is also one of the most
 efficient.
     In the March 2003 issue of International Gaming & Wagering Business (IGWB)
 -- an independent and leading source of international lottery and casino
 information -- the Michigan Lottery was ranked among the top 11 lotteries in
 the United States with regard to effectiveness and efficiency.
     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.  It is very difficult for any
 state lottery to rank high in all of these categories.  The Michigan Lottery
 is one of only eight lotteries in the United States to be ranked 11th or
 better in all five categories.
     Out of the 38 states who operate lotteries, Michigan ranked 11th in
 efficiency in generating sales as a percentage of personal income.  Over the
 past 30 years, entertainment options have expanded rapidly for Michigan
 residents, therefore increasing the competition for Lottery players'
 discretionary income.  The Michigan Lottery continues to use its advertising
 and promotion efficiently and effectively to attract players to its games.
     "The Lottery's games are just one of many entertainment options that
 Michigan residents choose from each and every day," Acting Lottery
 Commissioner James Kipp said.  "Each year the Michigan legislature
 appropriates a specific amount of money the Lottery can use for the
 advertisement of its products.  We carefully pick and choose how we are going
 to advertise our games through both print and broadcast mediums, and when
 those advertisements air, to ensure that we reach the maximum number of
 players all across the state."
     The Michigan Lottery's highest rank of 3rd came in the category of
 efficiency with regard to revenue returned to the state as a percentage of
 sales.  The Lottery is a proud supporter of kindergarten through 12th grade
 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
 that the Michigan Lottery maintains a good balance of prize payouts with
 sales, and shows the ability to keep costs low in order to raise the maximum
 amount of funds to support Michigan's schoolchildren.  The only other state
 lotteries that ranked ahead of the Michigan Lottery in this category were
 Florida and Pennsylvania.
     "In fiscal year 2002, the Lottery generated more than $613 million in
 revenue for the state School Aid Fund," Kipp said.  "On average, that would be
 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 is contributed to the state School
 Aid Fund."
     The Michigan Lottery ranked 3rd in the category of government revenue as a
 percentage of gross revenue.  Government revenue represents the amount
 available for a lottery to turn over to the government based upon current-year
 operations and non-operating items.  This factor measures the Lottery's
 ability to return money to the state after taking the payment of prizes into
 consideration.  The only state lotteries in the study that ranked ahead of the
 Michigan Lottery were Florida and New Jersey.
     The Lottery ranked 11th in the lowest amount of money spent to generate
 sales dollars.  This category measured the Lottery's expenses, not including
 prizes, as a percentage of sales.  This ranking underscores the fact that the
 Michigan Lottery is very efficient at keeping its expenses low while
 generating revenue.
     Finally, the Michigan Lottery ranked 6th in cents spent to generate one
 government dollar.  This category measured the Lottery's operating expenses
 compared to net income.  This ranking shows that the Michigan Lottery spends a
 minimum amount on operating costs to ensure that the maximum amount of funds
 are generated for 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 highest amount of
 funds possible are transferred to the state School Aid Fund.
 
 

SOURCE  Michigan Lottery