The Kentucky Lottery has been congratulated by skill game developer Pace-O-Matic over its record revenues for the Commonwealth.
Last week, the lottery announced its sales had been pushed to ‘record-breaking levels’ during the 2022 fiscal year, reporting YTD sales (July-May) of $1.54bn.
“Kentucky’s lottery is generating more revenue, with increased sales of scratch-offs and iottery,” said Mike Barley, Spokesman for Pace-O-Matic, which has also experienced increased growth in the state.
“We have been clear that our economic forecast numbers show legal games of skill have no negative impact on the lottery. This is confirmed by the continuing growth of lottery revenues.”
Barley noted that state residents, small businesses, fraternal organisations, veterans’ groups, seniors, and charities all benefit from the lottery and skill games achieving success.
He also suggested skill games could assist the state even more if proposed legislation passes that further regulates skill games and imposes additional taxes on the games.
“At a reasonable tax rate, skill games could provide over $100m in recurring revenue to the Commonwealth annually while providing critical supplemental income to Kentucky small businesses and fraternal clubs, like our American Legions, VFWs, and Fraternal Order of Police groups.
“A properly regulated and fairly taxed skill game industry will greatly support Kentucky.”
Meanwhile, an independent economic study conducted by Dr. Peter Zaleski, an economics Professor in Pennsylvania, showed that in a mature skill game market, lottery sales may increase if those machines are coupled with skill machines in an establishment, like those of Pace-O-Matic.
However, Barley expressed his disappointment at the lottery’s apparent unwillingness to compete with other businesses and instead build a monopoly on the market to protect its earnings in the state.
Skill games give 40% of the revenue earned to the owner of the small business where they are located. Lottery retailers earn only 6.25% of the revenue generated, while online lottery cuts out retailers altogether.
“One of the lottery’s main arguments against us is that we didn’t seek permission before coming to the market,” said Barley. “However, those who live in glass houses should not throw stones.”
This article originally appeared in LotteryDaily.com on 6/22/2022. Image credit: Shutterstock