Auditor General releases results of Fiscal 2017 Rhode Island Lottery audit
STATE HOUSE – The Rhode Island Lottery paid $362.7 million to the state’s General Fund for the year ended June 30, 2017, according to the Lottery’s audited financial statements. The amount paid to the General Fund represents 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, 2017, 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 2017 decreased $7.1 million compared to the year ended June 30, 2016. The Lottery’s gross profit from gaming operations before operating expenses totaled $372.9 million for the fiscal year ended June 30, 2017. Video lottery accounted for $289.0 million or 77.5 percent of total gross profit.
Net video lottery revenue decreased approximately 1.3 percent compared to the prior year. Online revenue decreased 5.4 percent and Instant Ticket revenue decreased 2.1 percent over prior year amounts. The Lottery’s operating expenses totaled approximately $10.9 million for the year ended June 30, 2017.
Net revenue from Twin River table games totaled $140.1 million, an increase of 11.3 percent for the year ended June 30, 2017 — the fourth full-year of table game operations. After commissions paid to Twin River and the Town of Lincoln, the state’s share of net revenue from table games amounted to $22.4 million.
Management’s Discussion and Analysis, which accompanies the financial statements, includes discussion of the Twin River Tiverton casino under construction, plans for new gaming activities, and competition from existing or future gaming venues in neighboring states.
The Auditor General also issued the Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The audit found no matters required to be reported under Government Auditing Standards. The auditors reported two management comments. One contained recommendations for the Lottery to further enhance its information technology (IT) oversight and monitoring and a second related to the anticipated implementation of a new accounting standard for postemployment benefits other than pensions (retiree healthcare).
The audit report and a summary of it are available on the Auditor General’s website, www.oag.ri.gov under “audit reports.”
For more information, contact:
Dennis E. Hoyle, CPA, Auditor General
Office of the Auditor General
Providence, RI 02903
401.222.2435 ext. 3038