Auditor General Releases Results of
Fiscal 2020 Rhode Island Lottery Audit
STATE HOUSE — The Rhode Island Lottery paid $283.9 million to the State’s General Fund for the year ended June 30, 2020 representing the Lottery’s net income after payment of prize awards, commissions and operating expenses.
The Lottery’s financial statements for the fiscal year ended June 30, 2020 and the Independent Auditor’s Report thereon are included in a report issued by Auditor General Dennis E. Hoyle and released today by the Joint Committee on Legislative Services. The auditors concluded that the Lottery’s financial statements were fairly presented in accordance with accounting principles generally accepted in the United States of America.
The total amount transferred to the State for fiscal 2020 decreased $113.4 million compared to the year ended June 30, 2019, reflecting the impact of the global pandemic, which caused the temporary closure of the Twin River casinos and halted most sporting events thereby reducing Sportsbook revenue. Competition from a new gaming venue in nearby Massachusetts also negatively impacted Lottery net income. The Lottery’s gross profit from gaming operations before operating expenses totaled $295.4 million for the fiscal year ended June 30, 2020. Video lottery accounted for $213.1 million or 72.1% of total gross profit.
Net video lottery revenue decreased approximately 32.5% compared to the prior year. The Twin River casinos were temporarily closed and re-opened in June with reduced VLT capacity. On-line games revenue decreased 17.4% while Instant Ticket revenue increased 9.5% over prior year amounts. The Lottery’s operating expenses totaled approximately $13.6 million for the year ended June 30, 2020.
Net revenue from table games totaled $83.3 million for the year ended June 30, 2020. After commissions paid to the facilities and the towns, and related operating expenses, the State’s share of net revenue from table games amounted to $12.9 million.
Mobile Sportsbook gaming was offered for the first time in fiscal year 2020. Gross profit for Sportsbook totaled $9.5 million, after commissions, payouts and marketing expenses. iLottery gaming (eInstants and iKeno) began in June 2020, with gross profit approximating $220,000 for the year.
The audit report included the Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance which identified an internal control deficiency related to the Lottery’s need to enhance monitoring of the newly implemented Sportsbook and iLottery gaming options due to the unique operational aspects of those games and the involvement of multiple external parties in their operation. The auditors also reported three management comments intended to enhance internal control or result in other operational efficiencies.
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