(The Center Square) – Gaming revenues from the Delaware Lottery have gained momentum after the heaviest lockdowns from the pandemic were lifted, a recent analysis reveals.
In response to an inquiry from The Center Square, Helene Keeley, acting director of the Delaware Lottery, indicated the operation’s fiscal year 2022 revenues stand at $825.31 million, based on unaudited figures.
The figure is in sharp contrast to audited revenues from recent years.
Keeley, who succeeded longtime director Vernon Kirk upon his retirement July 31, indicated the state lottery brought in revenues of $787.71 million in fiscal year 2019 and dipped to $641.99 million in 2020 as the pandemic began taking hold. In 2021, revenue inched back up to $770.65 million.
While the forthcoming fiscal year 2022 audit – expected for release late this year – will shed more light on the uptick in gaming revenues this past year, several reasons have been attributed to its rise, including the growth in online gaming platforms.
Since its inception nearly a half century ago, the Delaware Lottery has infused revenues into the state budget for a variety of purposes.
In her annual comprehensive financial report, covering fiscal year 2020 and 2021, state Auditor Kathleen McGuiness touched on the correlation between the lottery and funding state programs.
“Unlike many other state lotteries, the Delaware Lottery’s revenue is not earmarked for any specific cause or group,” McGuiness wrote. “Instead, the lottery generates income for the state’s general fund.”
Speaking to the purpose behind the general fund, McGuiness said it functions as “a pool of money that finances a variety of state services, such as youth education, neighborhood protection from crime and pollution, parks and beaches maintenance, and health care for families and seniors.”
McGuiness in her analysis added, “In this way, the Delaware Lottery helps pay for services that otherwise would require additional tax dollars.”
The general fund, however, is only one piece of the revenue picture. According to Delaware Lottery data, 50% of the total gaming revenues go toward prizes. The general fund is the next largest recipient with 30% of the proceeds.
The Delaware Lottery’s most recent auditing report from independent firm Clifton, Larson, Allen LLP delved into the comparative fluctuations between fiscal years 2020 and 2021.
“The prize liability increased $1.1 million in 2021 over 2020,” the auditors wrote in their analysis.
“The increase in sports betting has a direct correlation of the increase in prizes. Prize liability decreased in fiscal year 2020 over fiscal year 2019 by $1.8 million due to the shutdown of sports lottery during the fourth quarter of fiscal year 2020 for COVID-19.”
The Delaware Lottery was first established in 1975 and, over the years, has grown and evolved.
In a 2020 news release touting the 45th anniversary, Kirk said the organization has been a part of strengthening Delaware’s economy.
“Since 1975, we’ve supported state services that help Delaware thrive, and to date, the Delaware Lottery has generated over $5.6 billion in revenue for the State General Fund,” Kirk said in the 2020 statement while still in the role as director.
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