Auditor General releases results of Fiscal 2019 Rhode Island Lottery audit
STATE HOUSE — The Rhode Island Lottery paid $397.3 million to the State’s General Fund for the year ended June 30, 2019, an increase of $32.3 million over the prior year, as reported in 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, 2019 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 Lottery’s gross profit from gaming operations before operating expenses totaled $408.4 million for the fiscal year ended June 30, 2019. Video lottery accounted for $314.5 million or 77.0% of total gross profit.
Net video lottery revenue increased approximately 8.6% compared to the prior year. On-line revenue increased 0.4% and Instant Ticket revenue increased 4.3% over prior year amounts. The Lottery’s operating expenses totaled approximately $11.7 million for the year ended June 30, 2019.
Net revenue from table games totaled $163.4 million for the year ended June 30, 2019. After commissions paid to Twin River and the Towns of Lincoln and Tiverton, and related operating expenses, the State’s share of net table game revenue was $21.9 million. Net table game revenue increased 12.1% in 2019 due to table games newly offered at Twin River – Tiverton and the implementation of hybrid stadium electronic table gaming.
Sports Book gaming began during fiscal year 2019 at both Twin River casinos. Gross profit totaled $3.0 million, after commissions, payouts and marketing expenses.
The Lottery separately disclosed contingencies related to increasing competition from casinos in nearby states and, as a subsequent event, the launch of mobile sports betting in September 2019.
The Auditor General also issued the Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters. The audit found no matters required to be reported under Government Auditing Standards but included four management comments highlighting opportunities to strengthen current information systems security and monitoring, assessing required modifications to the disaster recovery plan for the Lottery’s data center, and enhancing monitoring of sports betting activity.
Link to audit Report:
Link to audit Summary:
For more information, contact:
Dennis E. Hoyle, CPA, Auditor General
Office of the Auditor General
Providence, RI 02903
401.222.2435 ext. 3038