Massachusetts Lottery Tops $1 Billion in Profit Again Despite Record Prize Payouts

The Massachusetts Lottery has once again crossed the $1 billion profit mark, making it the sixth straight year the organization has delivered more than $1 billion in net profit to the state. Even so, officials said the final total came in slightly below expectations because players won a record amount in prizes.

For the fiscal year ending June 30, the Lottery generated $1.045 billion in net profit from $5.904 billion in total sales. Administrative expenses accounted for about $141.7 million, or roughly 2.4% of revenue, before profits were distributed to support local communities.

Highlights from the Year

• $1.045 billion in net profit for Massachusetts
• Sixth consecutive year with more than $1 billion in profit
• 146 prizes worth $1 million or more awarded
• Record 74.19% of revenue returned to players as prizes

Massachusetts Treasurer Deborah Goldberg thanked retailers, customers, and Lottery employees for helping fund essential local programs across the state. She also pointed to the recent launch of the state's online lottery platform, saying it is expected to expand funding for early childhood education and childcare while strengthening future Lottery revenues.

Although the Lottery remained highly profitable, the final result was $5 million below the projected $1.05 billion and about $22 million less than the previous fiscal year. Officials said the biggest reason was a historic level of prize payouts.

Players collected an estimated $4.379 billion in winnings, fueled by two Powerball jackpots that topped $1 billion during the fiscal year. That helped push prize payouts to a record 74.19% of total revenue, the highest percentage in the Lottery's 50-year history.

Executive Director Mark William Bracken said the higher payout reduced overall profits but was a positive outcome for players. He also noted that Powerball, several in-state draw games, and record Keno sales helped keep profits strong.

The Lottery awarded 146 prizes valued at $1 million or more, including 136 scratch ticket jackpots and 10 Powerball prizes. The biggest individual win was a $25 million prize from the $50 Mega Money scratch ticket.

Not every game posted growth, however. Scratch ticket sales, which usually make up about two-thirds of total Lottery sales, fell 3.7%, dropping by $145.6 million to $3.808 billion.

Other games helped offset that decline. Draw game sales climbed 12.2% to $758.7 million, while Keno reached a new all-time sales record of $1.288 billion, edging past the previous year's high.

The Lottery also reported that its statewide network of retailers earned $337.1 million in commissions and bonuses during the fiscal year.

Looking ahead, state officials believe the newly launched Mass Lottery Online could help increase future profits. Adults 21 and older can now play eligible lottery games through the official app or website using their phones, tablets, or computers.

Bracken said online sales are already generating revenue, and he expects those additional profits to provide even more funding for early childhood education grants in the years ahead.