Downturn has more people betting on lottery

Downturn has more people betting on lottery
In these tough times, many people appear willing to gamble a few precious dollars in the hope of winning instant deliverance from their economic woes.

By Juanita Cousins, The Associated Press
1/11/2009

NASHVILLE, Tenn. -- In these tough times, many people appear willing to gamble a few precious dollars in the hope of winning instant deliverance from their economic woes.

More than half of all states with lotteries have reported rising sales over the past six months, and some researchers say financial insecurity might be driving people to risk more of their money than usual on $1 and $5 instant scratch-offs and other daily games in hopes of a big payoff.

"Someday somebody is going to win, and I hope it is me," said Albert Atwood of Nashville, who spends $100 weekly playing the Pick 5 and Lotto Plus. "I imagine that I would be a heap better off if I saved this money, but everybody has dreams."

Driven by regulars like Atwood and a growing number of occasional players, 25 of 42 states with lotteries have experienced higher sales of scratch-off and daily lottery games since July, according to Scientific Games, a maker of scratch-offs.

In Washington, D.C., instant sales reached a record of $45 million in the 2008 fiscal year, representing an 11percent year-over-year increase.

In Tennessee, sales of instant lottery games were up $8 million during the fiscal quarter ending in October.

The Massachusetts lottery reached a record of $4.7 billion in sales during the last fiscal year, up from $4.4 billion.

Nationwide, instant and daily lottery revenues have been on the rise since 2004, according to U.S. Census Bureau data.

Some experts say economic hardships prompt people to justify small-stakes gambles even as they cut back on nonessential goods and services. Others pin the increased lottery activity on creative marketing by scratch-off makers and state governments, which cannot afford to lose this revenue at a time of tight budgets.

Some researchers see a correlation between economic difficulties and the popularity of lotteries.

"When people feel like they are behind compared to where they were yesterday, they want to make up for that," said Emily Haisley, a postdoctoral associate at the Yale School of Management who published a research paper on lotteries in The Journal of Behavioral Decision Making in July.

"They become risk-seeking in order to catch up and the small hope of winning becomes more attractive."

John L. Mikesell, a professor at Indiana University, published a study in 1994 comparing lottery sales rise and unemployment rates.

"When times are tough, the prospect of spending $1 on a remote chance to potentially change your life is appealing," Mikesell said.

Bill Cooper, a 60-year-old a from Chattanooga, Tenn., was still savoring his $500 win from a day earlier on a $1 Cash 3 pick that helped the disabled painter pay groceries, a title loan and some IOUs.

Allen Nevils, a 58-year-old moving company supervisor, put himself on a budget, driving less and purchasing groceries in bulk, but he still allots $20 a week to play daily lottery games.

"I really don't want to win that much," Nevils said. "I just want to be all right."

Atwood, a 68-year-old telephone company retiree, said he has spent at least $75,000 on lottery tickets since the Tennessee lottery began in 2000.

"I am absolutely not acting in my best economic interest," Atwood said. "But we always hope that we win big, and that is what drives us."