Lottery Industry Leaders Name Michigan Lottery As One of the Four Most Efficient the United States

Apr 17, 2001, 01:00 ET from Michigan Lottery

    LANSING, Mich., April 17 /PRNewswire/ -- The Michigan Lottery is not only
 one of the most mature lotteries in the nation (at almost 30 years old), but
 according to a major gaming industry publication, it is also one of the most
 efficient.
     In the April 2001 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 ten lotteries in
 the United States with regard to effectiveness and efficiency.  According to
 IGWB's annual lottery study, which measures U.S. lotteries in terms of overall
 performance, the Michigan Lottery put in a "stellar performance" in fiscal
 year 2000.
     Four 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 and cents spent to generate one sales dollar.  It
 is very difficult for any state lottery to rank high in all of these
 categories.  The Michigan Lottery is one of only four lotteries in the United
 States to be ranked 11th or better in all four categories.  The other three
 lotteries are Maryland, New Jersey and New York.
     Out of the 38 states who operate lotteries, Michigan ranked 10th 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," Lottery Commissioner Don
 Gilmer 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 ranked 6th in fiscal 2000 in 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 36.3 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.
     "In fiscal year 2000, the Lottery generated more than $618 million in
 revenue for the state School Aid Fund," Gilmer said.  "On average, that would
 be approximately $11.9 million going into the state School Aid Fund every
 week, or $1.6 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's highest ranking of 4th came 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 New Jersey, Pennsylvania and
 Illinois.
     Finally, the Lottery was 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.
     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."  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
    LANSING, Mich., April 17 /PRNewswire/ -- The Michigan Lottery is not only
 one of the most mature lotteries in the nation (at almost 30 years old), but
 according to a major gaming industry publication, it is also one of the most
 efficient.
     In the April 2001 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 ten lotteries in
 the United States with regard to effectiveness and efficiency.  According to
 IGWB's annual lottery study, which measures U.S. lotteries in terms of overall
 performance, the Michigan Lottery put in a "stellar performance" in fiscal
 year 2000.
     Four 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 and cents spent to generate one sales dollar.  It
 is very difficult for any state lottery to rank high in all of these
 categories.  The Michigan Lottery is one of only four lotteries in the United
 States to be ranked 11th or better in all four categories.  The other three
 lotteries are Maryland, New Jersey and New York.
     Out of the 38 states who operate lotteries, Michigan ranked 10th 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," Lottery Commissioner Don
 Gilmer 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 ranked 6th in fiscal 2000 in 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 36.3 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.
     "In fiscal year 2000, the Lottery generated more than $618 million in
 revenue for the state School Aid Fund," Gilmer said.  "On average, that would
 be approximately $11.9 million going into the state School Aid Fund every
 week, or $1.6 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's highest ranking of 4th came 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 New Jersey, Pennsylvania and
 Illinois.
     Finally, the Lottery was 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.
     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."  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