Kentucky iLottery Sales Nearly Doubled in 2018 Amid Another $1 Billion Year

The Kentucky Lottery released the results of the 2018 fiscal year ending June 30^th earlier today and the results show a very healthy operation. For the second straight year, the Kentucky Lottery hit a new sales record and topped $1 billion in sales.

Louisville Business First reported this morning that total lottery sales for the fiscal year reached $1.04 billion to make 2018 the best year ever for the KY Lottery. That’s an increase of more than 4% of 2017, which was also a record year for KY Lottery sales.

Kentucky iLottery also saw major growth with sales nearly doubling in 2018. The Kentucky online lottery was launched in April 2016 and achieved about $400,000 in sales before the end of that fiscal year just two months later.

iLottery expanded significantly over its first full year of operation to achieve $5.2 million during the 2017 fiscal year. Now, they’ve added another $5 million in sales on top of that for total iLottery sales of $10.2 million in the 2018 fiscal year.

Here’s what KY Lottery President and CEO had to say about the 2018 sales figures:

“Several new initiatives really helped push sales to this record-breaking level. An increased emphasis on marketing and in-store messaging, changes in prize structure that players really liked and new measures implemented by our outstanding staff and retailers are the reason for this increase.”

No Evidence Online Sales Cannibalize Retail Sales

Brick-and-mortar retailers will also be happy to see these sales figures as they indicate Kentucky’s online lottery expansion has not cannibalized retail sales. Out of the $42 million increase the Kentucky Lottery saw last year, only $5 million of that (11.9%) came from online sales. The other $37 million in sales growth came from retail sales.

When Kentucky first launched its online lottery, lottery officials were quick to assure retailers that they “are and will continue to be the most important part of our business.”

A WKYT news piece from April 2016 announcing the launch of iLottery quoted KY Lottery CEO Arch Gleason assuaging retailers by pointing to other states that had also authorized online sales to no ill effect:

“In the first full year of internet lottery sales in Michigan, they had a 6% increase in traditional brick and mortar business. In the first full year of internet lottery games in Georgia, they had a 4% increase in traditional brick and mortar business.

“The key here is that overall sales increased at retail once internet sales was launched in these two states, and we expect this to hold true in Kentucky.”

So far, his prediction is indeed holding true. Kentucky retailers have seen record sales numbers two years straight since iLottery sales went live.

Lottery retailers in Pennsylvania can also breathe a little easier with this news. Pennsylvania launched its own iLottery last month. The current PA iLottery website only offers a small collection of instant win games, but draw games and others are expected to come online in time. Even as online draw games go live, all evidence to date indicates retailers are unlikely to experience cannibalization in sales.