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Tenn. Lottery CEO blames lagging sales on Powerball

Tenn. Lottery CEO blames lagging sales on Powerball

Posted: 11/18/2008 5:27:14 PM

Tennessee Lottery

Hey, you wanted to be in the gambling business...

Tennessee officials are hedging their bets on Powerball to lift the lottery out of a sales slump that could hurt revenue projections for education.

Lottery CEO Rebecca Paul Hargrove says lottery sales have been running about $400,000 less per week than last year since the fiscal year began July 1.

She blames Powerball.  The jackpot went over $300 million at one point last year but hasn't reached that level yet this year.  Bigger jackpots increase sales.

The Knoxville News Sentinel reports the lottery chief told Gov. Phil Bredesen in budget sessions Monday in Nashville that the lottery is now projecting about $288.6 million in revenues for education this fiscal year.

That's about $2.5 million more than last year, but about $3.5 million less than earlier estimates.

In 2007, despite complaints from legions of upset lottery players, Hargrove decided to change the Tennessee Lottery drawings from a mechanical ball machine to a computer random number generator (RNG).  Subsequently, the lottery was embroiled in criticism over a string of faulty drawings and errors, resulting from the computerized drawing system.

Hargrove claims that it would cost the lottery $5 million to revert back to the real drawings, but some say the lottery has cost the state more than that with the errors and loss in player confidence.

Some legislators recognized that the computerized drawings were hurting the player's confidence in the games and introduced legislation to revert back to real drawings.  (See Tennessee Lottery may be forced back to real drawings, Oct. 9, 2007, and Tenn. lawmakers want to force lottery to drop computer draws, Mar. 26, 2008.)

But the State Senate never took up the measure that was championed by House Minority Leader Jason Mumpower, and the proposal was withdrawn in April (Tenn. proposal for real lottery drawings withdrawn, Apr. 30, 2008).

Now, with revenue shortfalls again facing the state, Tennessee lawmakers need to decide if the lottery's revenue projections will remain at the whim of Powerball jackpots, or if they will proactively generate player excitement — and increased revenues — by bringing real drawings back to the state.

The residents of the state also need to decide if they will take matters into their own hands, by contacting their state representatives and demanding that real mechnical ball drawings be reinstated in Tennessee.

The Tennessee Lottery stopped using real drawings in 2007.

Source: Lottery Post Staff

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Posted: November 18, 2008, 5:42 pm - IP Logged Bottom Top

Ahh, just like these sort of clowns, blame one thing while completely ignoring the other, bigger issue....

I'm sure Powerball cut into some sales, but all those problems with the RNG and their brilliant giving out the wrong phone number certainly didn't give customers a boost of confidence in how competent the people in charge of the state lotteries are.

With odds like 1 in 175,711,536 how can I lose?!

You can't predict random.

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Posted: November 18, 2008, 6:16 pm - IP Logged Bottom Top

The Powerball has nothing to do with the drawings.Of course she has to blame it on someone.The fine folks in Tennessee have been waiting on this,now the last laugh is on her.Cant wait till they come and say,,,,,,What you gonna do when they come for you,bad boys.!!!!!!!!  oh yea with all these losing tickets I have stacked up in the cabinet are actually good? Who knows....

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Posted: November 18, 2008, 7:23 pm - IP Logged Bottom Top

Boy, she still can't see past her nose....!

Powerball may have cut into some, but not 400,000 less per week. WAKE UP and smell the coffee Mrs Hardnose. The good folks in Tenn don't deserve to be bilked the way you're doing it with computers. Get some Balls Rebecca, then maybe the revenue will go back up. Tah Tah dolling......!

        harley  This is one Sweet ride clyde...!

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Posted: November 18, 2008, 7:28 pm - IP Logged Bottom Top

Well said MADDOG   With a 10

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Posted: November 18, 2008, 8:16 pm - IP Logged Bottom Top

That is amazing.  I watched her on the news last night and this morning and she clearly stated that she thought it was the high cost of gasoline that had cut into sales of lottery tickets.  she also stated that she thought that with gas prices coming down that the lottery would be able to make more money possibly getting to the amount of money they were making before all of the gas hikes.  Well, whatever, it remains to be seen. I am sure player confidence does have something to do with the shortfall.

Information=power=money

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Posted: November 18, 2008, 8:44 pm - IP Logged Bottom Top

"The Knoxville News Sentinel reports the lottery chief told Gov. PhilBredesen in budget sessions Monday in Nashville that the lottery is nowprojecting about $288.6 million in revenues for education this fiscalyear."

That may be less than expected, but it's no small amount. If TN players want real drawings back, drop that number till the decimal point threatens to move.

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Posted: November 18, 2008, 8:45 pm - IP Logged Bottom Top

I, for one, have quit playing Tennessee's lottory since they went to the RNG method.  I have no confidence in any official of this state doing right, be they Republicans or Democrats.  In my book, computerized drawings were introduced to make mainpulation easier and more difficult to uncover.  I will keep my money in my wallet until they bring back ball drawings.  If that means I never get to lay $1 down on the Pick 5 again, then so be it.  I am finding that I don't have a problem not having a ticket for the next draw.

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Posted: November 18, 2008, 8:49 pm - IP Logged Bottom Top

I, for one, have quit playing Tennessee's lottory since they went to the RNG method.  I have no confidence in any official of this state doing right, be they Republicans or Democrats.  In my book, computerized drawings were introduced to make mainpulation easier and more difficult to uncover.  I will keep my money in my wallet until they bring back ball drawings.  If that means I never get to lay $1 down on the Pick 5 again, then so be it.  I am finding that I don't have a problem not having a ticket for the next draw.

I think there are many people like you. 

I really feel bad for you, because you all had the carpet ripped from under your feet with no warning or opportunity to voice you opinion.  What the lottery did was just plain wrong.  It's not what you signed up for.

It's awesome that you are voicing your opinion with your wallet, because that is the ONLY thing they care about.

Look how big this story is in Tennessee.  Normally the annual financial updates from the lottery get scant attention.  But because Hargrove missed the target, this became a much bigger story.  Keep making her miss until she gives you back your drawings.

If you normally buy 2 tickets a draw, just buy 1.  Or, like you're doing, buy none.

 

Check the State Lottery Report Card
What grade did your lottery earn?

 

Sign the Petition for True Lottery Drawings
Help eliminate computerized drawings!

 

Sign the Megaplier Petition
Let all Mega Millions players multiply their prizes!

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Posted: November 18, 2008, 9:04 pm - IP Logged Bottom Top

Boy, she still can't see past her nose....!

Powerball may have cut into some, but not 400,000 less per week. WAKE UP and smell the coffee Mrs Hardnose. The good folks in Tenn don't deserve to be bilked the way you're doing it with computers. Get some Balls Rebecca, then maybe the revenue will go back up. Tah Tah dolling......!

Well stated Maddog, completely agree. 

If Hargrove is true to form she's managing the TN Lottery with the same greedy tactics she used in Georgia.  Looks like it's coming back to bite her, hope it takes a much bigger chunk before it's over. 

    Be$$$$$t of luck to everyone!!!