A Rockefeller Institute of Government study cited in a recent New York Times article reveals lottery revenue has experienced steady growth over the past decade. Even more telling is lotto’s highest rate of growth: during the post-Sept. 11 recession of 2001-2002.

Some may call it a case of misplaced priorities…but in times of financial stress, more people resort to gambling on lottery tickets to put the pieces back together. In other words, you might not have the money for a new high-def flat-screen TV, but you can still pull a couple of dollars together every week for a chance at millions.

Even though most players know the chances of hitting that multimillion-dollar jackpot are slim, they’re willing to stay in the game… Here’s a telling quote from the piece in The New York Times:

“‘When people view themselves as doing worse financially, then that motivates them to purchase lottery tickets,’ said Emily Haisley, a postdoctoral associate at the Yale School of Management who in July published a research paper on lotteries in the Journal of Behavioral Decision Making. ‘People look to the lottery to get back to where they were financially.’”

Scratch-off tickets offer those with little disposable income a quick gambling fix. State-run lotteries have taken notice and have expanded their offerings to include slightly pricier scratchers with multiple chances to win. Massachusetts, the state with the highest per-capital ticket sales, recently introduced new instant-win tickets — a move that helped the lottery hit record sales topping $4.7 billion for the fiscal year.

Winning with Discount Thrills

One of the factors in new, improved scratchers is enticing gamblers to take their chances locally, instead of traveling to casinos. Make no mistake about it — this is a huge draw.

First, pricier scratchers were introduced. Costing anywhere from $5 to even $50, these tickets offer multiple chances to win bigger prizes. And the tickets still have the instant-win draw of the traditional $1 scratcher.

It’s obvious to draw the parallel between rising energy costs and lotto’s recent bump in popularity. With gas prices soaring, casino destinations are feeling the pressure of mounting traveling costs. Take the father of them all, Las Vegas. Sin City has long been hailed as a magical place where gambling revenues fell only once since 1970. The gaming industry in Vegas was considered largely recession proof, with lavish new hotel-casinos breaking ground almost every year to cater to the uber-rich.

But this fairy tale lasted until only this year… As of May, gambling revenue in Vegas had fallen 4%.

How Can the Lottery Stay on Top — Even During a Recession?

Lotteries have now found themselves at a critical juncture. Thanks to the weak economy, many more cash-strapped customers would prefer to get their gambling fix close to home. Now is the time for lotteries to win even more new customers with innovative and exciting games.

Some lotteries in the United States and abroad are doing just that. They’ve moved beyond traditional scratch tickets to pocket game cards — credit card-sized games operated by touch with LCD displays. These game cards provide multiple chances at winning money or prizes instantly. They’re fun, reusable and a big attraction…

And there’s only one company that makes them. I am recommending this tiny sub-$1 play to my Bulletin Board Elite readers. You have a chance to get in on it before it makes the jump.

Best,
Greg Guenthner
October 1, 2008

Editor’s Note: As always, send any questions or concerns to us at jim@pennysleuth.com.

Playing the Lottery in a Recession was originally featured in the Penny Sleuth.