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California Lottery revenues dip

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California LotteryCalifornia Lottery: California Lottery revenues dip

California Lottery officials on Tuesday lowered revenue estimates for the year by $275 million, just as Gov. Arnold Schwarzenegger suggested the state could double sales in a decade.

Citing a declining economy and poor brand image for the games, officials said the lottery's declining performance would reduce contributions to public education by $94 million, about 8 percent less than expected in the fiscal year that ends June 30.

"It makes it more difficult for the lottery to meet the goals in the governor's scenario," said Jason Dickerson of the Legislative Analyst's Office. The revision means lottery sales will slip to levels similar to five years ago, Dickerson said.

Schwarzenegger last week revised his state spending plan with a proposal to borrow against future lottery revenues to generate $15 billion over the next three years. About $5 billion of it would be used to help fill the state's $15.2 billion deficit in the new fiscal year.

On Monday, the Legislature's budget analyst called the governor's sales assumptions overly optimistic. Legislative Analyst Elizabeth Hill questioned whether the state could double lottery sales in 10 years because California has a historically lower-than-average participation rate.

Lottery Director Joan Borucki acknowledged that sales will fluctuate with the economy. However, she said the key to increasing ticket sales is to increase prize payouts. Currently state law caps payouts at 50 percent of revenues but Borucki said other states perform better because they hand out more.

"Even states like Texas and Oregon, they don't have the same kind of strange or arcane ... restrictions," Borucki said.

Instead of sales reaching $3.35 billion, the lottery commission on Tuesday approved revised sales estimates of $3.075 billion. Staff said the number of people playing lottery games, such as SuperLotto and Scratchers, is down 10 percentage points from five years ago.

California wasn't the only state to experience a drop. Staff said 19 other state lotteries reported flat or declining sales. Some of those states attribute the decline to the poor economy and high gas prices.

"The reasons behind the decline are complex, multifaceted and not always discernible," according to the staff report. "We are aware (of) our poor brand image and low prize payouts" that continue to contribute to declining sales.

Lottery officials said they are trying to improve the game's image by touting the number of winners in each region. A new game show is being developed, and the lottery has designed a new logo.

Sacramento Bee

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11 comments. Last comment 11 years ago by MeFirstYouLast.
Page 1 of 1

United States
Member #59165
March 8, 2008
174 Posts
Offline
Posted: May 20, 2008, 10:57 pm - IP Logged

Leave it to an official to be clueless.  People don't have the money to spend.  Maybe officials should be limited to salary's equal to an average citizen.  Then they would know what is happening.  Four dollars a gallon limits the trip to gas station for ticket and scratch offs.  What part of that is confusing? Nothing!  Unless, of course you make a guaranteed six figure salary.

    spy153's avatar - maren

    United States
    Member #28408
    December 15, 2005
    1198 Posts
    Offline
    Posted: May 20, 2008, 10:58 pm - IP Logged

    "The reasons behind the decline are complex, multifaceted and not always discernible," according to the staff report. "We are aware (of) our poor brand image and low prize payouts" that continue to contribute to declining sales.

    No it's not.  It is the gas prices!  Tonight I bought up double draws for MM so I didn't have to make the drive next draw that is so far away from where I live.  I also dropped my twenty bucks a draw down to 5 bucks....because of gas prices!  Face it, things are not good across America right now.  And it is all because of gas prices!

    California, OTOH, may have dropped mainly due to their low pari mutual payouts.  I know I don't want them like that here.

    voir-vous dans mes reves!Cool

      konane's avatar - wallace
      Atlanta, GA
      United States
      Member #1265
      March 13, 2003
      5042 Posts
      Offline
      Posted: May 21, 2008, 7:27 am - IP Logged

      If California and other states would raise payouts sales would increase no matter the economy.  Myopic legislators can't seem to grasp the obvious. 

      If Federal tax laws were revised to abolish tax on lottery wins following in Europe's footsteps  ...  then money would flow into states' lotteries from all over the world.

      Have fun and the best of luck to everyone! Sun Smiley

        Sista Dee's avatar - hi
        Decatur, GA (east of the ATL)
        United States
        Member #17
        October 11, 2001
        261 Posts
        Offline
        Posted: May 21, 2008, 9:18 pm - IP Logged

        I think it's a little bit of both (gas/pay out system).  I play mostly cash 3 and cash 4, and when I went out there to work at LAX on a job detail in 2004, I hit the number about eight times, but I was tripping about the payout system and the fact that there was no cash 4, and that I could only play for $1.00 and it had to be either str or box (no str/box or 50 cents)...  It also bugged me out to see the numbers flash on the TV with a voice over saying that these are the numbers for the day instead of a live person standing there with the machine. 

          Bondi Junction
          Australia
          Member #57240
          December 24, 2007
          1102 Posts
          Offline
          Posted: May 22, 2008, 6:08 am - IP Logged

          They should allow people to subscribe to the lottery, like Massachusetts. The California lottery did have a subscription program years ago, but they stopped it. The Massachusetts lottery makes million selling subscriptions to people all over the US.


            United States
            Member #59165
            March 8, 2008
            174 Posts
            Offline
            Posted: May 22, 2008, 10:08 am - IP Logged

            I don't know about other people on this site, but I do not have the money for the lottery that I used to have.  I now exceed $75.00 a tankful of gas, and food is going through the roof.  Based on the return, I have other priorities for the dollars. I used to spend five and ten dollars all the time; sometimes more. I am down to the one dollar only now.  Besides running out of money, I realize it only takes one to win - or one to loose!

              JustFrozen's avatar - scenery water_mountains.jpg
              OC, CALI
              United States
              Member #59562
              March 19, 2008
              76 Posts
              Offline
              Posted: May 22, 2008, 3:46 pm - IP Logged

              Did I just read that correctly?

              You acknowledge that California gives some of the lowest payouts in the country, and you're just going to make a new logo?

              That's it, I'm DONE, which is saying a lot considering how much I play


                United States
                Member #59165
                March 8, 2008
                174 Posts
                Offline
                Posted: May 23, 2008, 6:45 pm - IP Logged

                If California and other states would raise payouts sales would increase no matter the economy.  Myopic legislators can't seem to grasp the obvious. 

                If Federal tax laws were revised to abolish tax on lottery wins following in Europe's footsteps  ...  then money would flow into states' lotteries from all over the world.

                YOU ARE FUNNEY!  Why would the IRS,, or the state for that matter, want to eliminate a guarented income?  They are not going to eliminate any tax revenue.  Be patiant.  In 2009, the IRS will start the effort taking twice as much from all taxes.  Barrack Hussen Obama has already stated he will raise some taxes by 29%. At that to the loss of the Bush Tax cut of ten pecent, and then you will see a return the Jimmy Carter era - if you're old enough to actually remember him, not the modified history they now preach.

                Back to the taxes on the Jackpot.  I don't like it eaither.  But most lottery players NEVER think of the taxes when they plop down the buck, only the amount on the flashing LED sign.  They are just sheep lining up for the shiney lure.  Not every one is in the same category of a Lottery Post player - actually very few are.  Having said I don't like lottery taxes, if I win the hundred million shown on the flashing LED sign, and only get to walk home with $25 million, I will be soooooo happy, I will probably drop a load on the press conference stage!  The rich can afford enormous taxes and still be rich. Currently I cannot afford enoumous tax increase and stay in the income I am now.  Take an extra hundred or two away from my monthly income and I will have real problems. Barrack Hussen Obama will still be rich, and I will have less. YOU WILL HAVE LESS! How will a couple hundred less monthly, impact your budget, that plus the price increase of food and gasoline?

                  Avatar
                  Los Angeles CA
                  United States
                  Member #55725
                  October 16, 2007
                  195 Posts
                  Offline
                  Posted: May 23, 2008, 7:17 pm - IP Logged

                  "The reasons behind the decline are complex, multifaceted and not always discernible," according to the staff report. "We are aware (of) our poor brand image and low prize payouts" that continue to contribute to declining sales.

                  No it's not.  It is the gas prices!  Tonight I bought up double draws for MM so I didn't have to make the drive next draw that is so far away from where I live.  I also dropped my twenty bucks a draw down to 5 bucks....because of gas prices!  Face it, things are not good across America right now.  And it is all because of gas prices!

                  California, OTOH, may have dropped mainly due to their low pari mutual payouts.  I know I don't want them like that here.

                  I have to say I love the pari-mutuel pay-out system. You compare our Fantasy Five Pay outs with any other non pari-mutuel pay-out sytem and unless a super common number string comes out(like 1,2,3,4,X), our pay outs are ALWAYS higher on non jackpot prizes. Most states 3/5 is a $10 dollar prize, ours most commonly runs between $14-$17, most 4/5 prizes are $100, ours range from $300-$500. Why would you not want that unless you play a common number string.

                  If you play Pick3 and your number is a XXY (2 repeating digits and one other) and you play it straight again unless your 007 or another common number you will easily win $600+ instead of the normal $500 in a non pari-mutuel pay out system. Again why would you not want that?

                  Recently when the MEGA Jackpot was 197 mil, we had 4 people in our state hit 5/5 but not the mega ball, they all won 380k instead of the 250k ALL OTHER states 5/5 non mega ball winners recieve. You really don't want that?

                    What the original post is talking about is the overall money made available for prizes from ticket sales, most states give more than the 50% that is reserved for our pay-outs, this has nothing to do with our pari-mutuel pay out system, which I believe benefits the players. Every single time I have won a prize, pari-mutuel has given me more than if I had won that prize in a static pay out system.

                  EXMECHANIC

                  "My dollar buys hope, what does yours do?" 

                    konane's avatar - wallace
                    Atlanta, GA
                    United States
                    Member #1265
                    March 13, 2003
                    5042 Posts
                    Offline
                    Posted: May 23, 2008, 7:18 pm - IP Logged

                    YOU ARE FUNNEY!  Why would the IRS,, or the state for that matter, want to eliminate a guarented income?  They are not going to eliminate any tax revenue.  Be patiant.  In 2009, the IRS will start the effort taking twice as much from all taxes.  Barrack Hussen Obama has already stated he will raise some taxes by 29%. At that to the loss of the Bush Tax cut of ten pecent, and then you will see a return the Jimmy Carter era - if you're old enough to actually remember him, not the modified history they now preach.

                    Back to the taxes on the Jackpot.  I don't like it eaither.  But most lottery players NEVER think of the taxes when they plop down the buck, only the amount on the flashing LED sign.  They are just sheep lining up for the shiney lure.  Not every one is in the same category of a Lottery Post player - actually very few are.  Having said I don't like lottery taxes, if I win the hundred million shown on the flashing LED sign, and only get to walk home with $25 million, I will be soooooo happy, I will probably drop a load on the press conference stage!  The rich can afford enormous taxes and still be rich. Currently I cannot afford enoumous tax increase and stay in the income I am now.  Take an extra hundred or two away from my monthly income and I will have real problems. Barrack Hussen Obama will still be rich, and I will have less. YOU WILL HAVE LESS! How will a couple hundred less monthly, impact your budget, that plus the price increase of food and gasoline?

                    For beginners I'm old as dirt.  Second thing born and lived in Georgia all my life and suffered through Carter governorship of Georgia, do remember the entire US laughing about who they thought represented this state.  Ineffective governor, double ineffective president who hasn't gotten over being resoundingly defeated and upstaged by President Reagan.

                    Have you ever heard of The Fair Tax authored by Georgia Representative John Linder which would abolish the IRS plus all federal payroll taxes in favor of a value added consumption tax?  http://www.fairtax.org/site/PageServer  This is what we need to capitalize on the underground economy, illegals economy and otherwise untapped revenues instead of being buried eyeball deep in a socialist bastion of income redistribution. 

                    Have fun and the best of luck to everyone! Sun Smiley


                      United States
                      Member #59165
                      March 8, 2008
                      174 Posts
                      Offline
                      Posted: May 23, 2008, 7:34 pm - IP Logged

                      For beginners I'm old as dirt.  Second thing born and lived in Georgia all my life and suffered through Carter governorship of Georgia, do remember the entire US laughing about who they thought represented this state.  Ineffective governor, double ineffective president who hasn't gotten over being resoundingly defeated and upstaged by President Reagan.

                      Have you ever heard of The Fair Tax authored by Georgia Representative John Linder which would abolish the IRS plus all federal payroll taxes in favor of a value added consumption tax?  http://www.fairtax.org/site/PageServer  This is what we need to capitalize on the underground economy, illegals economy and otherwise untapped revenues instead of being buried eyeball deep in a socialist bastion of income redistribution. 

                      Great concept. 

                      However, money is power.  Congress obtains power from receiving money through taxes.  Do you honestly think the members of the U.S. Congress, let alone some low life in state politics, are going to give up all their power, and limit theirselves to a fixed income.  It will never happen!  Even a Pollyanna mentality has to realize the King is The King, Long live the King.  How can you write laws that guarantee your income will always be higher then needed, provide you with unlimted free medical and retirement benefits, and allow you build highways with your name on them.  There is no greater power then power iself, and no better way to control the masses then to control the riches.  Try to tell the U.S. Senate that they are out of money and can write no more laws or force any more mandates on people. Tell them no more deficits.  We tried that, they just raise the concept of a deficiet. Heheheh!