Hoosier Lottery adjusts forecast, approves ‘cautious' business plan for next year

Yahoo

21-05-2025

Hoosier Lottery signs hang in the organization's downtown headquarters on Tuesday, May 20, 2025. (Leslie Bonilla Muñiz/Indiana Capital Chronicle)
The Hoosier Lottery anticipates earning and spending slightly less than budgeted — but is still on track to deliver a hefty surplus payment to the state of Indiana. The five-member State Lottery Commission also easily approved its next business plan.
In a forecast revealed during a Tuesday commission meeting, revenues were expected to end the 2025 fiscal year on June 30 down by almost 4%.
But estimates for a trio of expenditures had decreased by even more: prize expenses by more than 4%, game and provider expenses by almost 5% and administrative expenses by a whopping 20%. The latter is due to how the lottery budgets for wages, plus 'other savings,' Chief of Staff Carrie Stroud said.
The lottery's contract operator, IGT Indiana, predicts it'll still provide $352 million in net earnings to state coffers.
Because the incentive payment mark is set at $342 million, the lottery and its operator plan to split an anticipated $10 million in overflow instead of the $15 million budgeted. If the operator hadn't cleared the $322 million minimum, it would've owed the lottery a shortfall payment.
In a year-to-date financial report for the 10 months ending April 30, surplus revenue to the state was on schedule — about $285 million.
Hoosier Lottery Executive Director Sarah Taylor said Powerball sales — 'a huge favorite' in Indiana — were down here and nationwide.
'It's just the nature of the game,' Taylor told reporters after the meeting. 'You know, we have a year where it has huge jackpots and a year where it doesn't. So nothing's wrong with it.'
Worsening economic conditions may have contributed to scratch-offs' almost $58 million underperformance when compared to the budget year-to-date.
'Folks may spend a little bit less on their entertainment dollars with us, and we respect and understand that and look forward to when they are returning to us,' Taylor said. 'But we still offer a variety of price points. So even if they'd like to play at the $1 (price point), we've got some fun $1 (products).'
In its fiscal year 2026 business plan, the lottery hopes to net $352 million and gross about $1.6 billion — the same amounts it's expecting to earn this fiscal year.
'We did take a cautious approach on, not only the draw games, but also on scratch,' Taylor said. '… We want to make sure it's the right fit for our players. We want to make sure the play style is fun and interesting, so we'll be very flexible, like we were this year, into next year. And yes, we were cautious.'
Lawmakers recently killed a proposal that would've let the Hoosier Lottery establish interactive online gaming — likely raising overall sales.
'We're 35 years old … And so, we're selling the same product the same way,' Taylor told reporters.
'If the Legislature decides that it's the right time to make that move, we'll accept it and be happy to launch an iLottery program,' she continued. 'In the meantime, we'll do everything to bring home the monies that we've committed to bring to the state of Indiana, but look forward to maybe some additional modernization and innovation when it's the appropriate time.'
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