GREENFIELD, Mass. (WWLP) – Massachusetts Lottery profits are expected to go down due to budget cuts made by Governor Charlie Baker.
Massachusetts lottery profits which are used to aid local communities are expected to go down 35 million dollars for the remainder of this year and next due to those budget cuts.
Over 70 percent of Massachusetts Lottery sales come from instant ticket sales. Lottery profits are expected to go down by $35 million dollars for the remainder of this year and next due to budget cuts by Governor Charlie Baker to close a $768 million budget gap. The state says the Lottery needs to cancel three instant tickets that were scheduled for release later this year, costing the state $12.4 million in profits for fiscal 2015 and $22.5 million for fiscal 2016.
The Mass Lotto plans to trim printing costs for scratch tickets, technology upgrades, and its advertising budget.
Net profits are now expected to be about $935 million, down from about $947 million.
Dean Russin, of Greenfield told 22News, “I don’t think that that will really affect too much cutting back because a lot of people know about lottery tickets already.”
The Mass. Lottery says that its profits are the largest single source of local aid revenue. The Governor and lawmakers said aid won’t be cut. “It’s an escape consideration or possibility to change ones reality with a dollar bill,” said Michael Slahetka of Greenfield.
In reality the state will have to find a way to make payment to cities and towns to make up the difference if there are any lost Lottery profits.
Lottery profit projections for fiscal 2016 have been downgraded from $920 million to $897 million. These cuts will not affect payouts.