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Study: Hoosier Lottery has worst financial decline in USA

Indiana LotteryIndiana Lottery: Study: Hoosier Lottery has worst financial decline in USA
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Another state with computerized drawings fares poorly

Has Indiana considered boldly changing back to real drawings?

INDIANAPOLIS — Proceeds from Indiana's lottery were down by more than 17 percent in the past fiscal year, marking the sharpest decline in profits nationwide.

Hoosier Lottery proceeds fell by nearly $40 million. The state's profit from scratch-off tickets, Powerball and other lottery games dropped from $217 million in the 2008 fiscal year to $178 million in fiscal year that ended June 30.

Lottery officials said the decline is caused in part by the recession and a lack of big jackpots.

The Indianapolis Star reported Thursday that a study by the Nelson A. Rockefeller Institute of Government at the State University of New York found Indiana's drop in lottery profits was the sharpest of any state that has a lottery.

Last month, lottery officials said that its revenue was down 11 percent from the same period last year.

"We're doing research. We are talking to our players. We are talking to our retailers, talking to our vendors to make sure we have the correct games in play," said Andrew Reed, of Hoosier Lottery, in August.

The decline includes all types of games, from scratch-offs to pull tabs, daily draws and the big prizes.

The Hoosier Lotto was hit a record 13 times in the 2009 fiscal year.

Nationwide, lottery revenues were down almost 3 percent, the study indicated.

Thanks to vistaguy for the tip.

6News

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26 comments. Last comment 7 years ago by caipiao.
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maringoman's avatar - images q=tbn:ANd9GcTbRxpKQmOfcCoUqF2FyqIOAwDo7rg9G-lfJLAALPGWJWwiz19eRw
Massachusetts
United States
Member #37433
April 14, 2006
2747 Posts
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Posted: September 24, 2009, 3:14 pm - IP Logged

I don't feel pity for states that decide to use computerized drawings when their revenues take a plunge. I wouldn't feel that I had a fair shot regardless of the odds if the game has computerized drawings.

    Avatar
    Indiana
    United States
    Member #79479
    September 2, 2009
    42 Posts
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    Posted: September 24, 2009, 3:24 pm - IP Logged

    Very glad you posted this story. For the Hoosier Lottery to blame the 17% drop on the economy is not a valid argument considering the average lottery drop is only 3%. That clearly should tell Indiana they need to quit scamming their players with a rigged lottery. Its not just the lottery either. When the scratcher odds are 1:4 and people are buying 10 and 20 tickets in a row and not winning, something is wrong.

    Somebody needs to wake the Indiana lottery commission up

      JordanT1021's avatar - Lottery-062.jpg
      North Carolina
      United States
      Member #53121
      June 24, 2007
      6498 Posts
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      Posted: September 24, 2009, 5:18 pm - IP Logged

      i agree.. NO MORE COMPUTER DRAWS....

      ping pong balls only..

      Hooiser lottery if you read this get into the act...

      Quoted by favor4:

      Your winning number is not under attack. It's about to HIT. So Hang In There"

        Coin Toss's avatar - shape barbed.jpg
        Zeta Reticuli Star System
        United States
        Member #30470
        January 17, 2006
        10348 Posts
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        Posted: September 24, 2009, 6:23 pm - IP Logged

        Isn't it ironic that states that go computerized always say it's more "cost effective."

        Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

        Lep

        There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

          JordanT1021's avatar - Lottery-062.jpg
          North Carolina
          United States
          Member #53121
          June 24, 2007
          6498 Posts
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          Posted: September 24, 2009, 7:04 pm - IP Logged

          Isn't it ironic that states that go computerized always say it's more "cost effective."

          yeah cost effective for not having to pay someone, but look at the downside.. players hate computerized and the revenue goes down down down... i hope ncel never goes to computerized drawings.... i would never win

          Quoted by favor4:

          Your winning number is not under attack. It's about to HIT. So Hang In There"

            Avatar
            Indiana
            United States
            Member #79479
            September 2, 2009
            42 Posts
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            Posted: September 24, 2009, 9:24 pm - IP Logged

            i agree.. NO MORE COMPUTER DRAWS....

            ping pong balls only..

            Hooiser lottery if you read this get into the act...

            They wont listen. They are saving $80,000 a year by doing RNG but will accept a $40 million loss in revenue and blame it on the economy to keep the fraudulent RNG because they get to keep more money for themselves.

              Avatar
              Milwaukee, WI
              United States
              Member #3131
              December 27, 2003
              665 Posts
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              Posted: September 25, 2009, 12:22 am - IP Logged

              And they have had so many powerball winners.  Many more than Wisconsin.

              Don't then get anything????

              I know that the states collect taxes...

              MarkP

                diamondpalace's avatar - Untitled 2.jpg
                Dallas, TX
                United States
                Member #60284
                April 12, 2008
                3856 Posts
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                Posted: September 25, 2009, 3:47 am - IP Logged

                Stick to real ball drawings to gain back people's trust. Also give out more prizes, to gain sales. It takes money to make money, for lottery, litterally.

                  Littleoldlady's avatar - basket
                  Clarksville
                  United States
                  Member #487
                  July 15, 2002
                  17638 Posts
                  Offline
                  Posted: September 25, 2009, 8:19 am - IP Logged

                  I wonder what TN's will be?  I know they have lost a lot of players.

                  If you know your number is going to hit, have patience and then KILL IT!

                  You never know when you will get another hit.

                    konane's avatar - wallace
                    Atlanta, GA
                    United States
                    Member #1265
                    March 13, 2003
                    3333 Posts
                    Offline
                    Posted: September 25, 2009, 10:21 am - IP Logged

                    Hoosier Lottery should take a clue from the Georgia Lottery which has televised live ball drop draws every draw.  When players see actual drawings they have greater confidence in game integrity therefore spend more.

                    Lotteries are one of those entities where you have to spend money on live ball draws to demonstrate complete transparency and honesty.

                    Clear argument for people believing what they see, distrusting what they can not.

                    Good luck to everyone!

                      vjohnson8's avatar - Lottery-061.jpg
                      fort
                      United States
                      Member #72407
                      March 17, 2009
                      6493 Posts
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                      Posted: September 25, 2009, 11:46 am - IP Logged

                      They need to go down hill,because,i have been play 111 for six years and it has never hit,the last time it hit was march of 2003,thats pretty bad and the odds are nt right,they also have a lot of repeat number,396 fell three times in just one month,they need to go back to the live balls ,or they are going to lose more players vjohnson8

                      LET's get paid$$$$ money rollYes Nod

                        vjohnson8's avatar - Lottery-061.jpg
                        fort
                        United States
                        Member #72407
                        March 17, 2009
                        6493 Posts
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                        Posted: September 25, 2009, 11:53 am - IP Logged

                        I AGREE THE SCHATCH OFF TICKETS ARE A JOKE,YOU SPEND A DOLLAR,THEY WONT GIVE YOU ANYTHING BACK ,GREED STATE,VERY SELFISH   VJOHNSON8

                        LET's get paid$$$$ money rollYes Nod

                          TnTicketlosers's avatar - Lottery-065.jpg

                          United States
                          Member #71120
                          February 19, 2009
                          1209 Posts
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                          Posted: September 25, 2009, 12:11 pm - IP Logged

                          Imagine that,yes Tennessee will finally either drop off the map,or get another CEO to run it.Until then (AS SHE QUOTED I DONT MAKE YOU PLAY)  Until then....That's funny.

                            Avatar
                            Columbia City, Indiana
                            United States
                            Member #2978
                            December 9, 2003
                            381 Posts
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                            Posted: September 25, 2009, 12:38 pm - IP Logged

                            It's been a while since I've had anything to do with the Hoosier Lottery, but if I remember correctly, they switched to an electronic drawing format for all their games sometime in 2001. According to their CPA/ Internal Auditor, a man named Joe Pfister, their first RNG was downloaded from a now-defunct web site called Lottery.com. That simple code was then uploaded to two 486 desktops (is anyone here old enough to remember those?) which served as our "official draw machines" for the next two years. One of them was housed, stored and used at the offices of Scientific Games near the Indianapolis airport, and the other was installed at Hoosier Lottery Headquarters downtown.

                            "Mister Pfister" told LosingJeff and I that switching to an RNG was actually William Foreman's idea (yes - THAT William Foreman, of the scratch-off ticket scandal), and that the Hoosier Lottery saved $80,000 per year with the new technology. According to their 2001 annual report, however, they LOST $100 MILLION in sales AND revenue during the first year of its operation. In 2002, they began earnestly promoting their "But We Have Integrity" campaign, and ran television commercials and full-page ads in newspapers all over the state assuring players that the RNG was a more secure method of drawing their numbers. We were unable to ascertain exactly how much they had spent running these ads, but we were pretty sure the cost would have exceeded $80,000.

                            Every year since, they've reported a decline in revenue, but somehow managed to boast of record sales in the same breath. I never could figure out how that works, exactly, but they have their own way of doing math down there. $2 + $2, for example, = $2, because two of those dollars aren't really there, see? Well, they WERE there, but those two dollars go to the state, so you can't really count them as part of our revenue. Yes, we sold a LOT of tickets, but the tickets we sold carried a smaller-than-average profit margin, and that was eaten up in printing costs, which is probably what happened to the two dollars of revenue you're currently trying to find. Yes, it's true that our sales totaled $800 million this year, but you're losing sight of the big picture; by using the RNG and not airing live drawings as state laws require, we SAVED $80,000, and that's called "fiscal responsibility!"

                            LosingJeff and I heard this type of "logic" used over and over again during the course of our four-year investigation of the Hoosier Lottery. Three different law firms told us that the 1600 pages of verifiable evidence we had collected "was probably sufficient to convict on at least three federal RICO predicates (Wire Fraud, Conspiracy to Commit Wire Fraud and Misappropriation/ Conversion of Public Funds). None would have anything to do with filing suits or charges, though, because, they said, "The state house can make it very difficult for us to make a living." When we took our evidence to the FBI in Indianapolis, we were escorted from the building and warned not to come back under threat of arrest (I know - but it's true), and a state police car followed us out of town.

                            If you want to see for yourself what they're doing and how they're doing it, just check their Daily Game payouts on the Hoosier Lottery web site. You'll see a LOT of zeroes, especially in the Daily-3 and Daily-4 games. Then, compare those payouts with those of ANY other state with lesser populations than Indiana, such as Delaware or South Carolina, who often pay out hundreds of thousands of dollars to winners of identical games. On a slow day, winners in those states claim mere tens of thousands in prize money, but their lotteries' payouts are NEVER "zero," as the Hoosier Lottery most often reports. The ONLY way they can pull this off with demonstrated consistency is to continually draw the number with the LEAST amount of play. The Hoosier Lottery is the ONLY lottery in the country without mandated liability limits, and they're also the ONLY lottery in the country which actively tracks player selections and bet amounts AS THE TICKETS ARE BEING SOLD. What's most disturbing is the fact that the Hoosier Lottery is exempt from state accounting or auditing procedures, so they've never been audited by the state in their entire history of operation.

                            Maybe their crooked practices are finally catching up to them.

                            Come, Pinky; we must prepare for tomorrow night...

                            Jim