Sales of Iowa Lottery products soaring

Sales of Iowa lottery products have been strong this fiscal year, but the agency's leaders are worried they could swing from robust to bust if gasoline prices continue their upward march.

Lottery Chief Executive Officer Terry Rich announced Tuesday that February marked a record with the highest monthly sales totals ever for the lottery's core products of lotto, scratch and pull-tab tickets. Last month's strong showing was led by sales of instant-scratch tickets and a double-digit February increase for the $2 Powerball tickets.

Overall, lottery sales of its core products totaled $30.2 million in February, topping the previous monthly record in combined sales from lotto, scratch and pull-tab tickets set in March 2011 by more than $3 million and keeping the lottery on pace for a double-digit sales increase in fiscal 2012 compared to the previous fiscal year, lottery officials said in a statement. Proceeds from lottery sales to the state general fund hit nearly $7.8 million for the month – a 69 percent increase from February 2011.

February also saw a monthly sales record for instant-scratch tickets, which totaled $17.5 million -- an increase of nearly $500,000 over the previous record set one month earlier that marked three straight months of record sales, according to lottery officials.

While sales figures for fiscal year 2012 remain strong, Rich said the lottery continues to watch rising fuel prices with some concern.

“Fuel prices through the years have been one of the biggest issues to impact lottery sales, and with predictions for the possibility of $4 to $5 gas heading into summer, our sales in the coming months may be affected. It's an issue we have seen and discussed during previous times of gas-price increases,” Rich said in a statement.

“Lottery tickets today remain what they always have been: an affordable, local entertainment option for consumers,” he added. “We're working hard to keep an attractive mix of games in the field so our players can continue to have lots of fun choices.”

The Iowa Lottery CEO attributed his agency's sales successes to a mix of games and themes, continued winners of large prizes in Iowa, popular promotions, the incorporation of lottery products with worthy causes such as the Iowa Veterans Trust Fund. Rich added that the media attention generated by the recent handling of the ultimately unclaimed Hot Lotto jackpot also raised the lottery's profile.

Since the Iowa Lottery's inception in 1985, players have won more than $2.8 billion in prizes, while the lottery has raised more than $1.3 billion for state programs, according to a lottery news release.