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Louisiana public education takes a toll from decreased lottery proceeds

May 5, 2020, 3:06 pm

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Louisiana LotteryLouisiana Lottery: Louisiana public education takes a toll from decreased lottery proceedsRating:

LA Lottery planning for a post-COVID-19 world

By Kate Northrop

BATON ROUGE, La. — With lower game participation levels amidst the nationwide COVID-19 stay-at-home orders, it is no surprise that state lottery revenues have taken a hit. Yesterday, Louisiana lottery officials announced that this would affect the proceeds used to help pay for K-12 public education.

Louisiana law requires that at least 35% of lottery proceeds be transferred to the state treasury and contribute to public education. About 53% of sales fund prizes while less than 6% is responsible for running the lottery.

In the fiscal year's third quarter ending March 31, the Louisiana Lottery Corporation recorded $123.9 million in revenue, bringing year-to-date contributions to more than $124.8 million. This marks a 5.7% decrease compared to last year's third quarter and a $16 million decline year-to-date. $43.3 million was transferred to the state treasury and dedicated to K-12 education this quarter.

However, sales for multi-state games like Powerball and Mega Millions were already down 30%-50% before the governor's stay-at-home order. Louisiana Lottery Corp. President Rose Hudson attributed these figures to a dearth of sizable jackpots over the last nine months. "Players have come to expect large, $400 million-plus Powerball and Mega Millions jackpots," Hudson said in a news release. "The recent suspension of minimum starting jackpots for these multi-state games has exacerbated this reality."

Each year, the Louisiana Lottery contributes over $150 million to K-12 public education. The Lottery also provides compensation to 3,000 vendors in Louisiana including convenience store chains, family-owned small businesses and grocery stores in addition to its employees. The Lottery's total contribution to education this year remains to be seen given the public health crisis.

Scratch-offs, on the other hand, have seen an upswing in sales for the first nine months of the fiscal year, up 4.1%. Considering that scratch-off games make up about 49% of the lottery's total sales, brick-and-mortar retail is not only integral to state lottery revenue, but to the lottery enthusiast's customer experience as well. The Louisiana Lottery is looking to explore alternative strategies to address a new post-COVID-19 reality and remain relevant, which could include creating retailer customer service solutions.

"People will continue to shop but will demand an experience that they cannot find online. That could be a grab-and-go convenience, learning something new or being entertained while shopping," Hudson says. "Lotteries need the freedom to diversify the ways they can deliver their products, and they should also look for ways to reduce the "high touch" nature of their transactions at retail."

Despite some retailers remaining open in Louisiana for essential purchases at the beginning of the nationwide health crisis, many of them chose not to sell lottery products due to reduced staffing and hours and the amount of customer interaction required to process a lottery transaction. Over time, becoming accustomed to the current situation combined with the loss of Lottery revenue encouraged some of those retailers to resume the sale of those products once more.

The Lottery also adjusted the prize claims process as a result of the continued stay-at-home order. Originally, prizes larger than $600 were required to be claimed in person or by mail with an original ticket. As of May 1, winners of $5,000 or less on any Louisiana based draw-style game ticket or scratch-off ticket are now able to mail in photocopies of their winning tickets for payout. This emergency rule change aims to ease the burden on players who are worried about losing their ticket in the mail and are simultaneously concerned about going out in public amidst the coronavirus outbreak.

The emergency rule change is in effect until lottery claims offices are fully operational.

To claim winnings under this new rule, players should sign and complete the information on the back of their winning ticket and ensure that all barcodes are clearly visible (scratch-off material completely removed from scratch-off tickets). Along with a photocopy of the front and back of the winning ticket, winners must include a completed claim form and a photocopy of their valid driver's license or current picture identification. The contents can be mailed in a single envelope to the address listed on the official Louisiana state lottery website.

The Lottery also advises all players to retain the original winning ticket in the event there is an issue with delivery but reserves the right to require an original ticket if there is a question regarding the claim. Prizes of over $5,000 and Powerball and Mega Millions prizes still require the original winning ticket to be paid out.

Additionally, players holding tickets winning prizes set to expire March 24 through May 15, 2020 will have until August 15, 2020 to claim their prize.

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17 comments. Last comment 22 days ago by noise-gate.
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Simpsonville
United States
Member #163184
January 22, 2015
2164 Posts
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Posted: May 5, 2020, 3:32 pm - IP Logged

I believe the fourth paragraph about sums it all up with PB and MM changing the rules for minimum jackpots and snail pace increments if not won.   Many states will feel the crunch.   Just wait until I win MM tonight and watch the state coffers really take a hit.

    Unlucky-Kenny's avatar - Cigar B1.gif
    HUDSON, WI
    United States
    Member #202058
    November 7, 2019
    721 Posts
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    Posted: May 5, 2020, 3:55 pm - IP Logged

    I believe the fourth paragraph about sums it all up with PB and MM changing the rules for minimum jackpots and snail pace increments if not won.   Many states will feel the crunch.   Just wait until I win MM tonight and watch the state coffers really take a hit.

    Whoa whoa whoa - I thought I was winning tonight?

    LOL

     

    I agree though - people don't want to pay $2($3 for multiplier) a ticket that now grows slower and has a smaller JP.

    Changing rules - smaller prizes - same price - bleh.

     

    "Despite some retailers remaining open in Louisiana for essential purchases at the beginning of the nationwide health crisis, many of them chose not to sell lottery products due to reduced staffing and hours and the amount of customer interaction required to process a lottery transaction."

     

    Need more staff to take 3 seconds to print a ticket? Maybe I am missing something.

     

    Anyway - 

    Good luck tonight Bleudog!

    Thumbs Up

      sully16's avatar - sharan
      25
      Ringleader
      Michigan
      United States
      Member #81738
      October 28, 2009
      74439 Posts
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      Posted: May 5, 2020, 9:48 pm - IP Logged

      The kids aren't in school anyway, what are they spending money on?

      It will pick up.Thumbs Up

      Hyper

        Avatar
        Kentucky
        United States
        Member #32651
        February 14, 2006
        8901 Posts
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        Posted: May 5, 2020, 11:40 pm - IP Logged

        The kids aren't in school anyway, what are they spending money on?

        It will pick up.Thumbs Up

        Good question!

        And it's probably more about the money schools are losing. But that happens when causes are depended on lottery sales.

        Mister we could use a man like Herbert Hoover again

          spartan1707's avatar - Lottery-050.jpg
          Tucson
          United States
          Member #119758
          December 2, 2011
          96 Posts
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          Posted: May 6, 2020, 2:56 pm - IP Logged

          They are really just crooks period. They even tell you it goes into the state general fund then they they committee sends money to education. Total Bull. With computers picking less picked numbers for drawings players just quit playing. Live drawings and a witness!

            Avatar
            Northern Beaches
            Australia
            Member #187037
            January 9, 2018
            120 Posts
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            Posted: May 7, 2020, 8:59 am - IP Logged

            The Louisiana Lottery should follow the UK's example, and offer online sales. The UK Lottery has millions of online subscribers.

              Avatar
              Simpsonville
              United States
              Member #163184
              January 22, 2015
              2164 Posts
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              Posted: May 7, 2020, 9:40 am - IP Logged

              The Louisiana Lottery should follow the UK's example, and offer online sales. The UK Lottery has millions of online subscribers.

              I don't know about Deutschland where I was stationed late 80's early 90's if they offer on-line subscription or not now.   Have not heard a peep from our Deutscher freund there in some time, he could enlighten us.  So doesn't surprise me that Dad's homeland offers on-line. 

               Somehow got lucky with Kentucky and can play on-line here.  Just last week they sent out a survey asking if I'd be willing to play if offered pick 3 or pick 4 on-line.   Ironically that was the original agreement to not sell them on-line...so we'll see.   Now that it is RNG that turns me off.

                Avatar
                South Carolina
                United States
                Member #18321
                July 9, 2005
                1826 Posts
                Offline
                Posted: May 7, 2020, 12:11 pm - IP Logged

                I believe the fourth paragraph about sums it all up with PB and MM changing the rules for minimum jackpots and snail pace increments if not won.   Many states will feel the crunch.   Just wait until I win MM tonight and watch the state coffers really take a hit.

                 "PB and MM changing the rules for minimum jackpots and snail pace increments if not won. " 

                 

                Why can't people just be GRATEFUL for ANY AMOUNT of MONEY that is being offered for the Jackpot ?

                It shouldn't matter if it  is a $2 Million or $20 Million minimum jackpot.  If $2 Million is more than you have now, then be THANKFUL for just $2 Million.  Most people wouldn't even know how to manage winning a $20 Million dollar Jackpot.  The desire for a larger minimum Jackpot is GREED, and GREED is a manifestation of the EGO.  A GREEDY EGO does not rest in a space of GRATITUDE

                  cottoneyedjoe's avatar - cuonvFT

                  United States
                  Member #197033
                  March 28, 2019
                  534 Posts
                  Offline
                  Posted: May 7, 2020, 2:22 pm - IP Logged

                   "PB and MM changing the rules for minimum jackpots and snail pace increments if not won. " 

                   

                  Why can't people just be GRATEFUL for ANY AMOUNT of MONEY that is being offered for the Jackpot ?

                  It shouldn't matter if it  is a $2 Million or $20 Million minimum jackpot.  If $2 Million is more than you have now, then be THANKFUL for just $2 Million.  Most people wouldn't even know how to manage winning a $20 Million dollar Jackpot.  The desire for a larger minimum Jackpot is GREED, and GREED is a manifestation of the EGO.  A GREEDY EGO does not rest in a space of GRATITUDE

                  With your poor understanding of odds, rates of return, and math in general, you yourself certainly could not manage $20 million, or even $2 million. Understanding odds is not "greed," nor is a lack of understanding "gratitude." 

                  In any case, if you would play a $2 game with 1-in-300-million odds for a payout of only $2 million, the state would be delighted to take your money. LOL

                  ... Sooper dooper top seekrit winning numbers: 5 16 17 24 33 52 ...

                    Avatar
                    Simpsonville
                    United States
                    Member #163184
                    January 22, 2015
                    2164 Posts
                    Offline
                    Posted: May 7, 2020, 7:53 pm - IP Logged

                     "PB and MM changing the rules for minimum jackpots and snail pace increments if not won. " 

                     

                    Why can't people just be GRATEFUL for ANY AMOUNT of MONEY that is being offered for the Jackpot ?

                    It shouldn't matter if it  is a $2 Million or $20 Million minimum jackpot.  If $2 Million is more than you have now, then be THANKFUL for just $2 Million.  Most people wouldn't even know how to manage winning a $20 Million dollar Jackpot.  The desire for a larger minimum Jackpot is GREED, and GREED is a manifestation of the EGO.  A GREEDY EGO does not rest in a space of GRATITUDE

                    Verstehen Sie Englisch said the German?   

                     

                    My point is AGAIN that state coffers will suffer due to the changes to MM & PB.  MUSL coulda/shoulda changed the odds a bit in the favor of their players...but no their the greedy ones.   Certainly not me.   And I have invested since I was 7, retired twice and know how to handle money quite well.

                      Avatar
                      Chasing $ Millions.
                      White Shores- California
                      United States
                      Member #136473
                      December 12, 2012
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                      Posted: May 8, 2020, 12:27 am - IP Logged

                      Just you wait till the kids find out, then....

                      GIF by US National Archives

                       * Voice of Reason *   

                       

                      People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

                        TheGameGrl's avatar - Lottery-012.jpg
                        A long and winding road
                        United States
                        Member #17083
                        June 10, 2005
                        6376 Posts
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                        Posted: May 9, 2020, 12:20 pm - IP Logged

                        The kids aren't in school anyway, what are they spending money on?

                        It will pick up.Thumbs Up

                        I concur .

                        Less overhead with the shutdown. No after school athletics. No purchasing. So unsure how when funds are not being spent how it's a loss to the education system.

                        *3433 7228 5050 6166 2228 3013*

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                          Chasing $ Millions.
                          White Shores- California
                          United States
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                          Posted: May 10, 2020, 8:53 pm - IP Logged

                          Louisiana public education may be taking a hit, but out here in CA, the topic has not been raised, and perhaps everything is going as planned. The last time l saw long lines in purchasing lottery tickets, was back when the jackpot had reached a Billion and a half. You know The Good Ol Days. One can learn a lot from reactions to responses. For instance, l ran a test today- my first ever response to a blog in all the years that l have been here, and l ended up being  " Blocked." l was courteous, used easily understood language, but came away with the thought that if you did not " fall in line with the blogger's" way of thinking, you were considered an intruder. l Thank you for the experience.Approve

                           * Voice of Reason *   

                           

                          People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

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                            Kentucky
                            United States
                            Member #32651
                            February 14, 2006
                            8901 Posts
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                            Posted: May 10, 2020, 9:38 pm - IP Logged

                            With "stay at home" orders in just about every state, it should be obvious lottery sales would suffer and so will the people expecting to benefit from huge lottery profits. Can't figure out why anyone blames PB and MM for rearranging their projected annuity jackpots especially here on LP where people should know the huge percentage of jackpot winners take the cash.

                            Can't remember the last time a jackpot winner took the payments.

                            Mister we could use a man like Herbert Hoover again