LOTTERYWEST could be said to be a barometer for the state’s economy, judging by its most recent accounts released last week.
Like many businesses in Western Australia, Lotterywest experienced a dip in sales in its 2010-2011 financial year but still managed to contribute $240 million to the community.
Lotterywest’s annual report for 2011 showed more than $114 million was made in direct grants to 1,082 community and charitable organisations across WA.
Two of the largest beneficiaries were ScreenWest, which received a $6.8 million direct grant, and the University of Western Australia (for the Perth International Arts Festival), which received a grant of $5.3 million.
More than $100 million was distributed in direct grants to charitable and community groups.
In addition, $101 million was returned to the state’s hospitals, $12.6 million to the arts sector and $12.6 million to the sports sector.
Premier Colin Barnett said the state government through Lotterywest had supported the WA community during a year of economic challenges.
“Lotterywest is the only lottery in Australia with a direct grants program which supports thousands of not-for-profit and charitable organisations, and these grants make a profound difference to the lives of all West Australians,” he said.
Total sales of Lotterywest games in 2010-2011 reached $683 million, compared to a budget of $720 million and total sales of $701 million in the previous financial year.
Lotterywest CEO Jan Stewart attributed the decline to challenging retail trading conditions and low-level jackpotting from several Lotterywest games.
“As with any retail product, lotteries are affected by the economic and retail environment,” Ms Stewart said.
“There is evidence that some [players] have reduced their expenditure on lottery products as the cost of living has increased in recent times, within an environment underpinned by caution and uncertainty.”
In addition, Oz Lotto and Powerball did not achieve the number of jackpots predicted by Lotterywest’s financial model.
There was also decline in Scratch ‘n’ Win products with a lower price point of $1 to $3, which resulted in Scratch ‘n’ Win coming in almost 6 per cent below budget.
Lotterywest has committed to an annual sales target of $716 million, with $243 million allocated towards supporting the WA community through the grants program.
