N.C. Lottery sales fall shortPrevious TopicNext Topic

I think both CO and Todd are right.

Tood had a point about the logos. The logos for the in-state games look extremely amateurish, and may cause players to believe, subconsciencely, that the entire operation is amateurish. As a freelance graphic designer, I can tell you a good logo is paramount if a medium to large-sized company like a lottery wants a good public image.

But CashOnly probably has the best point. Time and again, it has been proven that the more you put into prizes, the more tickets you sell. Tom Shaheen has actually acknowleged this, and he did ask the state legislature to remove the 35% minimum profit margin so payouts could be raised. But nothing of the sort has happened, yet. 

These are probably the only things NC can do to raise sales, other than add more games.

I disagree about the prize percentage thing. The average player has no clue about such small differences in prize payouts. You are part of a relatively small percentage of players who cares about such things. Think about how Cash Only goes around complaining non-stop about the prize payouts of the NY Lottery, and then how successful that lottery is.

The average NC lottery player knows the prize percentages.    They played in SC, Virginia and the most experience -underground - and they know what the prizes should be.  SC lottery made the most money in the border towns from NC people.  We have anti-lottery leaders with their thumbs on the Lottery Commission head that's making the lottery unsuccessful but there are some damn good lottery players in this state -  not to have never had a state lottery before. 

I think lottery officials were really shocked that players blow up the pick 3 daily.  Sometimes 2000 people hit pick 3 daily, never under 1,500 and they pay out averaging $175,000 daily on pick 3 hits for us to be such a small state compared to others.

I think they made money off the relatively small percentage of players who didn't know or care with those lousy scratch offs and that ridiculous Carolina 5 and even they caught on and quit buying them.

The majority of players are not the ones who don't know or care.  I think it's the other way around.  But I understand why you would think so.  There is a combination of things that affect the NC lottery falling short.  Just having the drawing prime time rather than 11:22 will beef it up.  Having the NC lottery on the down low is the result of anti-lottery people still having their way.  Tom Sheehan knows exactly what to do to make a lottery successful but have not been allowed to do so.  I wouldn't be surprised if he lasted 6 more months.

I tend to agree with Janet here too. I think that the NC player is a lot smarter than most people give credit to. For a bunch of hillbillies, we are hitting that Pick-3 with regularity.

Now, in all seriousness, Janet is right with the lousy scratch offs, which I have not known one person to hit for more than $20, and believe me, I know a lot of players around here. My office itself has some lotto nuts in it. The Carolina 5, whereby a good idea at its outset, has been a grandiose failure with its prize structure. People in SC won't touch that thing, unless there is a $300k or more jackpot to it. And even then, you may ended up with several winners. People I know have quit buying scratchers and C-5 as well.

The timing of the drawings is bad too. Implement a midday drawing and bring the evening back to even 8 or 9pm, when people can actually watch. Even if I am awake at 11:22, I forget to turn to WCNC for the drawings. It's just a stupid time to draw in my opinion.

Tom Shaheen won't be here in '08 I am sure of that.

The NY Lottery is successful because of a) its large population base (plus the people who live in the Connecticut and New Jersey suburbs); b) it's the second-oldest lottery in the country; and c) NYers are gamblers (the Religious Right has virtually no influence in NY state.)

But IMO there is a very significant difference between a 40% payout and a 50% payout, and NYers are starting to take notice. I predict a change in NY Lotto in 2007.

Todd:

First - I hope you had a great Christmas and will have a happy, prosperous 2007!

The revenue estimates were way too optimistic but that doesn't mean they can't or shouldn't do better than they have.  Budgeting proceeds before they are produced will set the lottery and the good causes it supports up for failure.

I know Shaheen - and your comments could not be more on the button. 

He doesn't go after top talent because he wants people in his organization who will kowtow and be eternally loyal to him (he learned that from a pro). And of course, he suffers from "Directoritis" ...that malady that almost always affects people who head lotteries. Symptoms include delusions of grandeur, vast increase in head size without corresponding brain activity, feeling that no one else really knows anything and a tendency to look, not at pressing organizational needs, but at ones own long-term career. I mean, once you've run two lotteries, chances are you can always get a top post somewhere else.

To be fair, low payouts aren't helping. You're right - advertising doesn't necessarily do much for instant ticket sales - winning tickets and a properly managed distribution/retail merchandising system are the chief drivers of instant ticket sales.

North Carolina, to beat a dead horse, had the chance to learn from over 40 other states mistakes when we started our lottery.  Because we hired the same bozos that ran other lotteries in the past, the same mistakes were repeated by said bozos.  A1 problem, already stated by others before in this thread, is spending (or planning to spend) money we haven't earned or booked.  Based on projections from said bozos, who actually already had the nerve to ask for bonuses.   We ran the state, and education in the state for over 200 years without lottery money, so the law allowing a lottery should have incorporated a clause that said no money can be budgeted unless it has already been earned.  So there is a one fiscal year lag in spending - so what?   You get to spend what you make and that's it.  We hemmed and hawed for 20 years on whether to do it in the first place - what would one more year matter?  Dumb bozos.

 The idea of advertising, or more advertising, makes me sick.  The whole argument to allow the lottery was because "people are going to play anyway", now all of a sudden we have to stick it in everyone's face in order to get them to play more?  Puke.  Advertising should be illegal.  Players should play from their own interests and motivation or else they should spend their money on food, medicine, clothing, text books and gasoline.  Give me a break with this advertising.   How many times did we read how much money was being gambled on the lottery in nearby states, with no direct NC advertising?  Puke.  Lottery ads are just sick.   And on top of that, advertising ain't free, and is another drain on the revenues, as said bozos try their old tricks on the tele.

 Let me gamble in peace.  Dumb bozos.

So the Non-Religious Left has virtually all the influence then?

I was wondering if there was a correlation between conservative states and liberal states who have lotteries.

To use a Rumsfeld word... we had a dickens of a time getting the lottery passed here in Oklahoma, and now there is news about it's shortfall toward the Education fund.

Oklahoma is sort of a fickle state in that it is largely Democrat with a Christian Conservative base. It's just strange. Hard to explain.

Anyway, yeah the lottery isn't doing as well as projected here either.

Lottery money appears to go to education, but the state just plays checkers with it.

Rread the following, all states do this:

 For every dollar that the Illinois State Lottery provides for education, the State of Illinois takes one of their dollars out of the education budget to use wherever they like.....

According to the site, they have raised a total of $1.7 billion in Fiscal Year 2004, with $570 million going directly towards schools. According to them, 33 cents from every $1 spent on lottery tickets goes to fund state education.

This is true. Unfortunately, what isn't true is the purpose this money ultimately serves.

When the law officially designated money raised by the lottery to pay for education in 1985, it was blindly assumed that any money raised by the lottery would be extra money, an added bonus to go towards the schools.

Many communities promoted involvement in the lottery to help pay for education in their area. They were somehow led to believe that the more lottery money raised in their area, the more extra money would go towards local schools.

Fact: Contrary to popular belief, money earned in the lottery is not an additional bonus or boost in state education money.

Fact: The amount of money a town or community spends on the lottery is not reflected in how much lottery money that area receives.

Fact: The money raised by the Illinois state lottery simply replaces money the state had put aside for education....

....Since its inception, the lottery has raised over $12 billion for state education "replacement" dollars, in FY2003, the lottery contributed $540.3 million dollars, only 16.7 percent of that years Illinois Common School Fund.

Even if every cent spent on lottery went towards education, (as opposed to 33 percent) the lottery would have to double their yearly income to come even closer to cover all of education.

More: 

http://www.dailyvidette.com/home/index.cfm?event=displayArticlePrinterFriendly&uStory_id=302dc011-f2ba-4881-a865-160b1ff7bac3 

And the schools never get better.