The Rhode Island Lottery has announced an 18% fall year-on-year in its revenue for the 2020 fiscal year, citing the COVID-19 pandemic as the reason for the decline.
The Ocean State lottery said in a statement on the report: “The lottery’s fiscal year 2020 revenues were materially affected by the global COVID-19 pandemic.
“Closure of the state’s two licensed casinos, many lottery retailers, restaurants and bars, the cancelling and elimination of professional and college sporting events, and stay at home regulations had a significant impact on revenues for all lottery lines of business, and have reduced expected revenues in the new fiscal year beginning July 1, 2020.”
The lottery’s total operating revenue fell to $882.7m for the 12 months ending June 30, 2020, while gross profit decreased 29% down to $295.4m. Operating income also fell to $281.8m from the previous year figure of $396.7m.
Funds transferred to the State’s General Fund decreased to $283.9m, down $113.5m for the year. The lottery mentioned its “ability to generate income for transfer to the fund could be adversely affected by competitor gaming activities in neighbouring states.”
During the fiscal year, mobile sports betting was offered in the Ocean State for the first time, with sportsbook revenues totalling $200.2m, up 172% from 2019. This increase happened even though sports were suspended in mid-March and on-premise sportsbooks at both Twin River Casino Hotels were forced to close until July due to the pandemic.
Video lottery net revenue decreased 33% to $352.8m due to COVID-19, as all video lottery gaming was suspended from March until casinos were allowed to reopen in June.
