MIDDLESBORO - Proceeds of more than $200 million mark the first time in the history of the Kentucky Lottery that the state has received that much funds.

Lottery officials say money from a couple of Powerball jackpots along with increased scratch-off sales during Fiscal Year 2006 made it possible for the Kentucky Lottery Corporation (KLC) to close out the year with record sales and dividends.

Howard Kline, Senior Vice President of Finance and Administration of KLC says at the end of fiscal year 2006 overall sales were $742.3 million. That exceeds by $17 million previous record of $725.3 million set in fiscal year 2004.

“Our proceeds have a direct impact for our state's young people, so these record numbers are even more significant since we help provide the financial assistance many of Kentucky's best and brightest students need to attend college,” said KLC President and CEO Arch Gleason.

Proceeds from the Kentucky lottery have been earmarked for college scholarship and grant programs, KEES scholarships, administered by the Kentucky Higher Education Assistance Authority.

Record-breaking Powerball jackpots of $340 million in October 2005 and again in February 2006 of $365 million led to dramatic sales increases for the game and paved the way for the record-breaking result.

Kline says scratch-off ticket sales also reached new record levels at $404.9 million, which is $19.8 million more than what was sold in FY 2005.

Lotto South, a multi-state game was replaced with Win For Life and that assist the lottery in gathering an additional $50,000 a week in sales. Win For Life game was launched in March.

Kentucky Lottery has earned more than $2.5 billion for the Commonwealth since 1989.

C.J. Harte is a Correspondent for the Daily News. He can be reached via e-mail at charte@middlesborodailynews.com.