GRAND RAPIDS, Mich. (WOOD) — The Michigan Lottery says sales dipped slightly in the 2022 fiscal year but still managed to provide more than a billion dollars for the state’s School Aid Fund.
Michigan’s schools received $1.248 billion in the last fiscal year, approximately $170 million less than the record-setting $1.42 billion donation following the 2021 fiscal year.
The lottery’s annual comprehensive report says the department brought in $4.9 billion in revenue from ticket sales, down 3.2% from $5.05 billion last year. However, the lottery did administer $3.1 billion in prize winnings, which is the highest number ever for Michigan.
Of those winnings, $35.4 million went unclaimed. All unclaimed winnings are added to the School Aid Fund.
The Michigan Lottery set several records in 2021. Total revenue jumped nearly 19% from FY 2020 to 2021, which lottery officials primarily attribute to the COVID-19 pandemic. Analysts expected a regression closer to their projections for 2022.
“An (online instant ticket) sales decrease for the fiscal year that ended in September 2022 is primarily due to an absence of pandemic-related factors that increased sales in fiscal year 2021, increased direct competition from casinos now offering sports betting and online gaming, reduction of disposable income by increased gas prices and inflationary pressures and a lack of large jackpots that drive ancillary sales,” the report read.
Lottery revenue has soared over the last decade. The Michigan Lottery grossed $2.48 billion in revenue in 2013, approximately half the amount reported in 2022.
Lottery revenue doesn’t only help Michigan’s schools. The lottery also gives back millions to its retail partners who help with ticket sales. In FY 2022, more than $356 million was distributed to retailers, including bonuses for big wins.
While the Mega Millions and Powerball games grab most of the headlines, the two games are not the biggest drivers of revenue in Michigan. Online instant games comprise nearly half of the total revenue: 48.6%. Daily drawing games like the Daily 3, Daily 4 and Fantasy 5 comprised 21.8% of the year’s revenue.
Mega Millions tickets were just 3.6% of the FY 2022 revenue, while Powerball tickets were 3.4%. Those numbers have dropped compared to recent years. The rolling 10-year average from 2012-2021 in Michigan put the Mega Millions at 3.9% of total revenue and Powerball at 4%.
According to 2021 data, Michigan recorded the eighth-most revenue from its state lottery despite having only the 10th-largest population (10.1 million people). Georgia’s sales stand the closest to Michigan’s lottery sales — $5.6 billion in revenue with 10.8 million people.
Florida recorded the most lottery revenue in 2021 ($9.1 billion) despite having only the third-largest state population (21.8 million). California had the second-highest revenue at $8.4 billion with a population of 39.2 million. Texas had the third-highest revenue at $8.1 billion with a population of 29.5 million people.