Makenzie Huber, South Dakota Searchlight
South Dakota Lottery revenue is expected to drop by $4.7 million this fiscal year, largely due to falling sales of number-picking lotto games.
Lottery sales are typically the state government’s third largest source of revenue for its general fund.
The state collected an estimated $184.1 million in lottery revenue during fiscal year 2024, after collecting $176.5 million in fiscal year 2023. The state expects to collect $179.39 million in fiscal year 2025. The state’s fiscal years begin on July 1 and run through June 30.
Lotto game sales were down 57.31% during the first two months of this fiscal year, compared to the same time last year.
Sales Director David Dahl told South Dakota Lottery commissioners Thursday during a meeting in Pierre that the drop in sales is a nationwide trend, adding that with “the economy the way that it is,” people have less disposable income.
At this time last year, “$5 billion jackpots” for lotto games drove up sales in South Dakota, Dahl added.
“We need that Powerball run,” Chairman Jason Ahrendt said after the presentation.
South Dakota Lottery expects video lottery revenue to increase by about $800,000 this fiscal year. Sales of instant games — scratch tickets — are expected to decrease by $660,000, though Dahl said instant sales generally perform better in the winter.
