TALLAHASSEE — Increased costs for necessities may have contributed to consumers buying fewer scratch-off tickets, as state economists reported that Florida Lottery sales declined last fiscal year.

Economists reported that ticket sales in the 2023-2024 fiscal year, which ended June 30, totaled $9.4 billion.

This is down from $9.8 billion in the previous fiscal year and $132.5 million less than expected.

Total ticket sales in 2023-24 marked the fourth consecutive year of higher sales, surpassing $9 billion, driven by a series of major jackpots in the multi-state Mega Millions and Powerball games.

However, economists are forecasting sales of less than $9 billion for this and the next two fiscal years.

A large part of the decline in 2023-2024 was due to a 6% decline in scratch card sales.

Saba Igbal, senior economist in Governor Ron DeSantis’ office, said scratch-off ticket sales first triggered the onset of the COVID-19 pandemic and then inflation.

“That’s kind of the story around COVID, at the time of COVID we saw ticket sales really start to increase. So people were gambling a lot more,” Igbal said during an Aug. 8 meeting of an economists’ panel known as the Revenue Estimating Conference. “And then we’ve seen over the last few years that’s started to taper off a little bit. Especially last year, probably because people now have to spend more on necessities because things are kind of more expensive. So we’ve seen ticket sales start to go down to reflect that.”

The figures are part of a long-term “financial report” that will be presented on Friday to the legislative branch’s Joint Budget Committee, which is made up of members of the House and Senate.

The fiscal outlook will provide detailed data and analysis on a variety of government fiscal issues for the coming fiscal years.

Lottery revenue is expected to fall to $8.8 billion for the current fiscal year, which begins July 1.

According to forecasts, sales are expected to slowly return to the $9 billion mark by the 2027/28 financial year.

The economists’ report says that large jackpots in the Mega Millions and Powerball games are stand-alone events and are treated as “one-off windfalls” when making forecasts.

Powerball brought in $750.9 million in revenue for the Florida Lottery last fiscal year, fueled by two jackpots that exceeded the $1 billion mark. Over the next five years, Powerball Florida is expected to bring in nearly $500 million in revenue per year.

Mega Millions generated $450 million in revenue in Florida last fiscal year, and the game is projected to generate about $300 million annually for the state over the next five years.

The lottery helps fund educational programs. Although Florida saw a decline in ticket sales in 2023-2024, the lottery will transfer $28.2 million more than planned to the state’s so-called Educational Enhancement Trust Fund due to income from investments and unclaimed prizes.

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About $2.4 billion will flow into the trust fund, the fourth year in a row above $2 billion, economists say. But that amount is expected to decline in the current fiscal year and grow little over the next five years.

By Jim Turner, News Service of Florida