Auditor General issues audit report for Rhode Island Lottery for the fiscal year ended June 30, 2022

 

STATE HOUSE – The Rhode Island Lottery paid $388.6 million to the state’s General Fund for the year ended June 30, 2022, representing the Lottery’s net income after payment of prize awards, commissions and operating expenses. Lottery revenue, including gaming activity at the Lottery’s two casinos, experienced a significant recovery during fiscal 2022 compared to 2021. The fiscal 2022 transfer to the state increased $86.8 million over the previous fiscal year. While increased, the fiscal 2022 transfer was less than amounts transferred in fiscal 2019 prior to the pandemic.

The Lottery’s financial statements for the fiscal year ended June 30, 2022, and the Independent Auditor’s Report thereon are included in a report issued by Auditor General Dennis E. Hoyle and released today by the Joint Committee on Legislative Services. The auditors concluded that the Lottery’s financial statements were fairly presented in accordance with accounting principles generally accepted in the United States of America.

The Lottery’s gross profit from gaming operations before operating expenses totaled $401.7 million for the fiscal year ended June 30, 2022. Video lottery accounted for $288.8 million or 71.9% of total gross profit. Net video lottery revenue increased by approximately 39.4% compared to the prior year. Online revenue increased by 7.0% and instant ticket revenue decreased 3.0% over prior year amounts. The Lottery’s operating expenses totaled approximately $13.2 million for the year ended June 30, 2022.

Net revenue from table games totaled $125.0 million for the year ended June 30, 2022. After commissions paid to the facilities and the towns, and related operating expenses, the state’s share of net revenue from table games amounted to $19.3 million.

Sportsbook gross profit totaled $19.9 million, after commissions, payouts, and marketing expenses. Sportsbook revenue increased 46.5% in fiscal 2022 with the resumption of sporting events and more patrons using the mobile Sportsbook application.

The Lottery disclosed recent amendments to the Master Contracts with IGT Global Solutions and the Rhode Island Affiliates of Bally’s Corporation as well as the increasing competition from gaming activities in neighboring states.

 The auditors reported an internal control deficiency related to the sportsbook contractor’s need to review and improve documentation of the bookmaker’s access to the sportsbook system and obtain coverage of complementary subservice organization controls of the bookmaker.

The full report as well as a summary are available at the Auditor General’s website, oag.ri.gov/reports.html.

 

The video showing the violent arrest of Tyre Nichols by Memphis Police is out. It starts with cops surrounding his car and throwing him to the ground, with Nichols saying "I didn't do anything!" Nichols, who is Black, died in the hospital days after the January 7th traffic stop involving now former police officers.       President Biden says he is "outraged" following the release of the video showing Memphis police officers beating Tyre Nichols. In a statement released after the video became public, Biden said he was outraged and "deeply pained" to see the video of the beating that resulted in Nichols' death. He added that it is another "painful reminder" of the fear, trauma and pain that Black and Brown Americans experience every single day.       The White House is urging peaceful protests ahead of the release of footage showing the traffic stop that led to the death of Tyre Nichols. Press Secretary Karine Jean-Pierre said President Biden has been briefed on the contents of the video and is monitoring the situation in Memphis. She added there must be accountability when officers violate their oath.        A woman who survived the deadly mass shooting in southern California is speaking out. The woman told KTLA her dance partner bravely shielded her from the bullets and it cost him his life. A GoFundMe has been set up to raise money for Yu Kao, who went by Andy Mr. Nice.        News anchors T.J. Holmes and Amy Robach are set to leave "GMA3." The two were taken off the air after news of their romantic relationship became public. ABC News launched an internal investigation and a contentious mediation session was held yesterday that resulted in the two anchors leaving the network.        TMZ reports Drake's Los Angeles home was burglarized overnight. Police told the outlet the rapper's security reported seeing an unknown man leaving the residence while carrying something. Cops arrested the suspect after he was spotted walking down a street nearby.