Lottery games still a big draw as people try to change their luck in hard times

Lottery games still a big draw as people try to change their luck in hard times

Bob Matteo, one of 14 Schnuck’s employees in the lottery pool at the store, prepares to purchase more Powerball tickets with the winnings from a recent drawing. Out of the tickets purchased, there were $11 in winnings, which Matteo used to buy more tickets.

News Tribune
By Kris Hilgedick
January 18, 2009

Lottery Strategies

Is the Missouri Lottery having an exceptional year, revenue-wise, even as the economy dives deeper into a recession? Or are the agency's earnings flat?

It depends on how you crunch the numbers, said Gary Gonder, director of Integrated Services.

In the calendar year 2008, the Missouri Lottery's sales exceeded $1 billion - a longtime internal goal for lottery employees.

But, if revenues from the current fiscal year are examined, it appears revenues are only up .17 percent - “flat as a pancake,” said Gonder.

Lotteries across the nation don't appear to be scoring big gains in tough times. However, unlike many other industries suffering massive decreases, they aren't witnessing big losses, either.

Steve Scherr, owner of Mr. Convenience near downtown Jefferson City, said he thinks lottery proceeds for his store are probably up for the year.

“Lottery sales are pretty good,” he said. “In bad times, I think people say, ‘I might win the big one!'”

When other industries are being laid to waste, “Any increase at all is good,” said Scherr.

Scheer believes people buy them almost as a habit. “It seems like it's a tradition to buy a ticket,” he said.

People may think more people buy lottery tickets when times are hard, but Gonder isn't certain it's true.

“We haven't seen people putting more money down because of the poor economy,” he said.

The Missouri Lottery offers about nine different game classes - Scratchers, Pulltabs, Lotto, Powerball, Pick 3, Pick 4, Show Me Cash, Club Keno and Raffle.

One sign that the poor economy may be changing people's buying habits is that sales of $1 Scratchers tickets are up.

Buyers “are still participating, but at a cheaper pricepoint,” he said. “It's the first time in five or six years we've seen an increase in the $1 game.”

Pulltabs are down by a third, but the small-stakes cards are being phased out anyway, said Gonder.

The biggest losses - down 15 percent - are in the Powerball category, but Gonder said that has nothing to do with the economy.

Powerball sales are driven strictly by the size of the jackpots, he said. When jackpots are huge, people hear about it and rush out to buy tickets. Scherr has witnessed the phenomenon: “The larger it get, people start buying Powerball tickets like crazy.”