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Texas Lottery jackpot game tickets in sales decline

Texas LotteryTexas Lottery: Texas Lottery jackpot game tickets in sales decline

Citing plummeting revenues that indicate a "jackpot fatigue" in state lotteries throughout the nation, the chairman of the Texas Lottery Commission challenged the organization's staff to consider boosting Lotto Texas sales by making the game more creative.

"Why can't we do something creative for a change — making it a $4 million jackpot and two Harley-Davidson motorcycles or a Corvette or one of those fancy trucks?" said Chairman C. Tom Clowe Jr. "Let's create some buzz. Let's give $4 million and a year's free groceries. Let's try it and see if it works."

Clowe's charge comes amid reports from the commission's financial administration that total lottery sales for the 2005 fiscal year decreased by 1.7 percent.

Though Pick 3 saw an increase in sales, jackpot games such as Lotto Texas and Mega Millions came up short — a trend mirrored by states across the nation.

"Jackpot games in the industry are in trouble because of the reliance on reaching a jackpot level that is acceptable to the public," said Robert Tirloni, products manager for the commission. "While people do play for the jackpot prize, when you continually play with no types of winning reinforcement, after a while, you may stop playing that game and go to a game where you're going to see some type of winning on a more regular or frequent basis."

The odds of a Lotto Texas player winning the jackpot is one in nearly 48 million, a change the commission made more than five years ago to accelerate jackpot amounts.

Yet Lotto Texas sales have dropped from $715 million in 1999 to $306 million last year, according to the agency.

The Mega Millions game, a multistate initiative, saw a 47 percent decrease in sales in Texas.

Benito Navarro, financial accounting and reporting manager for the commission, said 10 of the 11 other states that offer Mega Millions also reported sales decreases. Only Massachusetts saw an increase — about a third of 1 percent.

"We've got to do something with the game if we want to see it come back," Navarro said. "It's not coming back on its own. I appreciate the hard work you're doing with the instant tickets. But, as a bottom-line shareholder, I'm not so much interested in that as I am rescuing our sweetheart who's lame out there."

Also on Wednesday, Commissioner Rolando Olvera resigned after Gov. Rick Perry named him a state district judge in the Rio Grande Valley. Olvera will be judge of the 138th judicial district court, serving Cameron and Willacy counties.

The commission also continues searching for an executive director. Reagan Greer, a former Bexar County district clerk, resigned in July after admitting that he had signed off on advertising that inflated Lotto Texas jackpots.

Eight finalists for the job will be interviewed by a search committee Oct. 14, said Bobby Heith, lottery spokesman.

San Antonio Express

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12 comments. Last comment 11 years ago by CASH Only.
Page 1 of 1
Avatar
New Mexico
United States
Member #12305
March 10, 2005
2984 Posts
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Posted: September 29, 2005, 7:36 am - IP Logged

I'd bet gasoline prices and other economic trepidation, along with the recent newspaper attention is more a problem in Texas than it might be elsewhere.  It's a long commute getting almost anywhere in Texas.

Not to suggest innovation and imagination wouldn't help, but giving away products, instead of money probably doesn't qualify under either of those headings.  People probably understand they could buy those kinds of things if they had jackpots of that size.

Jack

Absorb the good, ignore the bad, weigh the ugly.

It's about number behavior.

Egos don't count.

 

Dedicated to the memory of Big Loooser

 


    United States
    Member #379
    June 5, 2002
    11296 Posts
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    Posted: September 29, 2005, 9:50 am - IP Logged

    Lotto TX should go back to a 6/54 with no bonus ball. Adding taxable prizes to a jackpot would be similar in question as annuity-only prizes.

      bobby623's avatar - abstract
      San Angelo, Texas
      United States
      Member #1097
      January 31, 2003
      1394 Posts
      Offline
      Posted: September 29, 2005, 12:10 pm - IP Logged

      I think it's time the TLC wakes up, smell the roses and implement a Lotto Texas game for roughly 2 million regular players. Pick 6/49 might be the best matrix.

      All of the lottery sales figures over the past several years indicate that millions of Texans who once played the lottery have given up on it.

      The original game, 6/50, was very popular. Many folks became millionaires. There were many stories in the news media. Success begot success.

      The TLC tried to take advantage of the game's popularity by adopting a 6/54 matrix. The justification the TLC game for making the change was highly suspect. Many players decided the change was based on GREED and walked away.

      When 6/54 failed, the TLC went to a jackpot game. No real justification was given. More greed - more players left the game.

      My view is that the TLC knows that their machinations to make more money has ruined the Lotto game. If giving away cars and groceries is the best then can do, then I think its time the governor of Texas steps in and fires all the folks who have screwed things up.

       

       

       

        Avatar
        Amarillo/Austin
        United States
        Member #1424
        April 25, 2003
        696 Posts
        Offline
        Posted: September 29, 2005, 12:48 pm - IP Logged

        There is a clue in the story if the Lottery Commission was smart enough to see it.  Pick 3 is growing!  That is because people think they have a rat's chance to win it.  People are fed up with throwing their money down the drain.

        Orangeman                                  No No


          United States
          Member #379
          June 5, 2002
          11296 Posts
          Offline
          Posted: September 29, 2005, 4:52 pm - IP Logged

          6/49 is too small for Lotto South, and also would be too small for TX. Bring back the 6/54 without the bonus ball.


            United States
            Member #5565
            July 11, 2004
            260 Posts
            Offline
            Posted: September 29, 2005, 5:07 pm - IP Logged

            If KY drops out, LS should probably go to 6/44. If it becomes a single-state lottery, it would be nice if they also allowed plays of 50 cents like their Cash 5.  The minimum purchase would still be $ 1, and purchases would have to be in whole dollar amounts.. This would also improve the odds for people getting the lower-tier prizes. If a single 50-cent pick gets the jackpot, they could just award half the jackpot and continue to rollover the prize money.


              United States
              Member #379
              June 5, 2002
              11296 Posts
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              Posted: September 29, 2005, 5:12 pm - IP Logged

              ichoro:

              Then you'd have Virginia offering a bi-state 6/44 when Lotto VA (single-state) was 6/49. Keep LS at 6/49 if KY dumps it.

                Avatar

                United States
                Member #972
                December 30, 2002
                465 Posts
                Offline
                Posted: September 30, 2005, 4:42 pm - IP Logged

                >The Mega Millions game, a multistate initiative, saw a 47 percent decrease in sales in Texas.

                With the cost of gas and everything else going up and so much uncertainty about the future, I'm not surprised lottery fatigue has set in.  When you have the seige mentality of needing every last dollar you can get and save, you start to see that the lottery is an expensive indulgence you can't afford anymore.  Since Texas's senators and most Texas congressmen voted for the tough new bankruptcy law, it is nice of the people to become more fiscally responsible and cut out unnecessary spending so they can avoid bankruptcy. 

                 

                  Avatar
                  New Jersey
                  United States
                  Member #21206
                  September 4, 2005
                  949 Posts
                  Offline
                  Posted: September 30, 2005, 10:51 pm - IP Logged

                  I recall that there was some kind of scandal in the Texas Lottery, artificially inflated jackpots.  This could not have helped.

                  Texas is the most corrupt state in the Union right now I think.

                   

                    Avatar
                    Amarillo/Austin
                    United States
                    Member #1424
                    April 25, 2003
                    696 Posts
                    Offline
                    Posted: September 30, 2005, 11:19 pm - IP Logged

                    Louisiana is the most corrupt state in the Union!  When they were in trouble, they fled to Texas . . .

                    Orangeman                            No No

                      konane's avatar - wallace
                      Atlanta, GA
                      United States
                      Member #1265
                      March 13, 2003
                      3333 Posts
                      Offline
                      Posted: September 30, 2005, 11:25 pm - IP Logged
                         

                      I think it's time the TLC wakes up, smell the roses and implement a Lotto Texas game for roughly 2 million regular players. Pick 6/49 might be the best matrix.

                      All of the lottery sales figures over the past several years indicate that millions of Texans who once played the lottery have given up on it.

                      The original game, 6/50, was very popular. Many folks became millionaires. There were many stories in the news media. Success begot success.

                      The TLC tried to take advantage of the game's popularity by adopting a 6/54 matrix. The justification the TLC game for making the change was highly suspect. Many players decided the change was based on GREED and walked away.

                      When 6/54 failed, the TLC went to a jackpot game. No real justification was given. More greed - more players left the game.

                      My view is that the TLC knows that their machinations to make more money has ruined the Lotto game. If giving away cars and groceries is the best then can do, then I think its time the governor of Texas steps in and fires all the folks who have screwed things up.

                      Lotteries all over the US with falling revenues could learn much by your statements!!!

                      I used to send money or trade tickets with my cousin in Texas when the matrix was 6/49 but she and I both gave up when they raised it ... she also told me that many people she knew were ceasing to buy tickets due to Texas Lottery greed.

                      The key to game participation is not ratchetting the matrix up. We have two major lotteries in the US with jackpots high enough to satisfy $$$$$$$ chasers who don't get off the dime unless the jackpot reaches $100M.

                      However, there are many bread-and-butter-to-the-lottery players who stop playing when greed takes over and regular lotto or fantasy 5 games are changed to a ridiculously high matrix.

                      One of these days their actuarial geniuses will catch on that bread-and-butter-lottery-players can actually count and aren't baffled by smoke and mirrors. Thinking of...    Thud

                      Good luck to everyone!


                        United States
                        Member #379
                        June 5, 2002
                        11296 Posts
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                        Posted: October 2, 2005, 6:08 pm - IP Logged

                        Whether LA is the most corrupt state is a matter of opinion. But I can say for sure that Mass & NY run the most corrupt US lotteries.