Massachusetts Treasurer Reports That Big Lotto Numbers Could Produce Money for the State

The Massachusetts State Lottery was established by the legislature in 1971, in response to the need for revenues for the 351 cities and towns of the Commonwealth. To provide an operating structure for the Lottery, the Legislature established a five-member commission that includes the State Treasurer as Chairperson, the Secretary of Public Safety, the State Comptroller, and two gubernatorial appointees.

The Commissioners oversee and provide final approval of the types of games, the consumer prices of games, the prize structure of games, the methods of prize payment, and the licensing of agents.
The Lottery Commission meets on a regular basis to discuss all Lottery operations.

Revenue generated from Lottery sales is used for three purposes.

A minimum of 45% of revenues stays in the State Lottery Fund to be paid out in prizes. Currently, the Lottery’s prize percentage is over 69%.

A portion of revenues is transferred to the Commonwealth’s General Fund for the expenses incurred in administering and operating the Lottery. The administrative and operating expenses of the Lottery are appropriated by the legislature as part of the annual state budget. Operating expenses cannot exceed 15%. Currently, operating expenses are under 8%. These operating expenses include 5.8% in commissions and bonuses paid to the sales agents who sell the tickets and under 2% in administrative expenses due to Lottery operation.

After prizes and expenses, the remaining Lottery revenues (approximately 23%) is transferred to the Local Aid Fund and returned to the cities and towns of the Commonwealth in the form of local aid.

According to Massachusetts State Treasurer Timothy Cahill, “Massachusetts State Lottery players have a chance to win an incredible $272 million in prizes this weekend as red-hot sales pushed the Powerball and Mega Millions jackpots even higher.

The Powerball jackpot for Saturday is $139 million with a cash option of more than $67 million while the Mega Millions jackpot for Friday has grown to $133 million with a cash option of more than $82 million.

Massachusetts and nine other Mega Millions states entered into a cross-selling agreement with Powerball on Jan. 31, setting off a cascade of sales across the nation. Powerball sales in Massachusetts just last month were more than $5.7 million. Massachusetts Lottery players also won more than $1 million low tier Powerball in prizes.

“The availability of Powerball tickets in Massachusetts has already paid big dividends for Lottery players and our 351 cities and towns,” said Treasurer Timothy P. Cahill, chairman of the Massachusetts State Lottery Commission. “After only a few weeks the successful Powerball and Mega Millions agreement is providing more revenue during a time when our communities are in dire need of local aid.”

During these jackpot rolls, Massachusetts Lottery players have bought more than $7.6 million in Mega Millions tickets and more than $3.4 million in Powerball tickets. Mega Millions players bought $1.1 million in tickets for Tuesday’s drawing alone.

In total, 33 three state lotteries, representing a combined population of 199 million people and 147,000 agents, now offer both Mega Millions and Powerball under the new agreement. The market for these games has the potential to expand to 45 state lotteries, representing 291 million Americans and 182,000 retail outlets.
Powerball drawings are held every Wednesday and Saturday at Universal Studios in Orlando and are aired locally by WCVB-TV Channel 5 at 11:20 p.m. Mega Millions drawings are aired every Tuesday and Friday at 11:24 p.m. also on WCVB-TV Channel 5.

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