Declining ticket sales prompt Lottery officials to consider alternative sales channels
By Kate Northrop
The Tennessee Lottery has quietly launched its online platform to sell tickets directly to players online in a bid to compete with growing competition from sports betting.
In a bid to combat declining ticket sales and competitors in the gaming industry, the Tennessee Lottery pushed a soft launch of a mobile app that allows players to purchase tickets on the internet.
The app, called "Anytime Powerball," gives players the added option of buying Powerball tickets online.
"Like our neighbors in Kentucky, Virginia, Georgia, North Carolina, as well as many other lotteries, the Tennessee Education Lottery is testing iLottery with a soft launch of Anytime Powerball as a new option to increase revenues for the important education programs we fund," Lottery Director of Communications & Corporate Social Responsibility Kym Gerlock said in a statement obtained by State Affairs.
As the Lottery is "tasked with maximizing dollars for education," Gerlock continued, the Lottery is responsible for keeping up "with the rapidly evolving technology of the current retail climate."
Much of the work to achieve direct online sales stemmed from convincing state legislature to amend laws prohibiting online ticket sales – the Lottery is barred from selling tickets over the internet unless state law allows it.
In its efforts to keep pace with growing competition, the Lottery "consistently communicated with the Legislature about its evolving operations and has noted in several hearings that it is pursuing new sales distribution channels as a way to increase revenues, which have been impacted by online sports wagering," Gerlock said.
Lottery President & CEO Rebecca Paul urged legislators to observe the decline in scratch-off ticket sales during her state budget presentation to Governor Bill Lee in November — a $65 million decrease at the end of fiscal year 2024 from the prior year. She explained that the Lottery was investigating multiple possibilities for reinvigorating sales during a time when larger Powerball and Mega Millions jackpots were sparse.
"We are looking at distribution channels, we are looking at prize payout, we are looking at enhanced value in our instant product," Paul said. "There are all kinds of different things that we're working on and looking at that we believe will make a difference."
Paul also mentioned the impact of sports betting in Tennessee, which began its online-exclusive sales operations in November 2020.
Given the successful implementation of direct online sales in other states, Gerlock additionally cited "growing evidence" that "iLottery does co-exist with traditional retail sales channels without cannibalization, and that there are examples of an increase in overall retail sales when coupled with iLottery."
The Lottery's soft launch of the Anytime Powerball mobile app aims to place more emphasis on multi-state draw games, which have consistently delivered high sales growth among other states.
"So we are trying to address some of the things that we can to reverse the decline we have right now with Powerball and Mega Millions in particular," Paul said.
Rather than taking credit card payments, the Anytime Powerball app only allows ACH payments from Tennessee players, which are electronic money transfers between bank and credit unions.
I was grandfathered in to Georgia Lottery's app account. I can play diggi games and purchase tickets from my phone as long as I'm in Georgia. (If you do not have an address in Georgia you cannot do this anymore) The app is a great tool and a lot of fun! I've won a lot of money with ga lottery.
It was just a matter of time until Tennessee decided to do the same thing. Before you know it, they will have a full selection of losing games for players to waste their money on instead of the crap they sell at stores. Can you tell I'm not a fan of Tennessee lottery? Congrats Tennessee lottery for being a day late and a dollar short, except for yourself.
Hey, Tennessee lottery, another thing.... Consolidated odds would be great for these crap tickets you sell... So we can see how bad it really is to win $500.00 on your best selling Jumbo Bucks branded tickets.... End of rant.
I was going to pontificate about the dangers of using credit cards .... that is until I read the whole article where it says bank or credit union transfer accounts would be used. This measure prevents people( problem gamblers) from going cuckoo with purchasing tickets.
Now I have a problem with this online stuff 'cuz it would obviously prevent you from remaining anonymous after you win the jackpot correct? Maybe someone here sees it differently than me.
I wonder would online include choosing your own numbers?
I think this online stuff is a little too convenient for problem gamblers even without the use of credit cards but it would be ideal for the elderly or disabled . I dunno ......
"sell tickets directly to players online in a bid to compete with growing competition from sports betting"
Not sure what the minimum sports bet in TN is, but in KY I can bet the same $2 price of a PB ticket on a race horse. Or for $4 I can bet them both. And most state lotteries with online betting options offer all their drawn games along with instant games.
Just can't see how online PB sales will TN gamblers will stop making sports bets and bet on PB.
As a former avid scratch-off participant, I truly can see why the the short fall has come into existence. The odds on many tickets are not within reason, along with the payouts being minimal at best. On the back of the scratch off $20 tickets at the very bottom it states that the jackpot prizes of $1 million or more will be paid out over 25 years. No mention of a cash option at all.
I had the privilege of meeting a winner of a $1 Million jackpot of Millionaire Jumbo Bucks game just a few years ago. I asked her how she liked being able to only collect the payout over 25 years(as stated on the back of the ticket).She told me that she had won the jackpot but when she went to collect, the prize payout could be done in cash BUT that amount was down in the $700K range. Really ?? Strange, no mention of that anywhere in any publication I have seen. Is that the same for $300K or $500K jackpot games ? I will let you know if I meet a jackpot winner or become one for that amount.
Then there is the list of remaining prizes https://tnlottery.com/remaining-prizes/ Why is there only the top 3 listed prizes and why are they only updated once a week? Are there other prize amounts lower than that and how many are there ? YES, yes there are. There are various $$ win prizes between $20 - $500 on a $20 scratch ticket but there is no place that I have found on the TN website to see what is a list of all prizes that could be won.
Within the last year I had the pleasure of winning a small claimer that was over $600 but under $5,000. Conducted my due diligence, filled out my form and went to Lottery Hdqtrs. Gave them my DL, SS card and the form. I was the only one in there and whole process took maybe 12 minutes. Got my check(no taxes taken out) Nobody asked me if I wanted my picture taken with a big check. Very simple and efficient. Good job on their part !! To this day, I have no idea where the $$ amount that I won, can be seen as a prize to be won or how many are left.
There was another $20 scratcher that I played on and off over the last 5-6 years(Game #374) until it expired 6/2024. I kept an eye on the prizes claimed. Only 1 $3M Jackpot prize was claimed in the 6+ years that prize was available. Now we have 3 $50 scratchers available.
" Prize payouts and enhanced value of our instant value" are only part of your problems. Your marketing strategy and hiding of prizes should be completely upgraded. Making education the big winner of the funds taken in is nice but you are gouging your players on these non payouts.
While TN can't compete with the Texas lottery website, they should be able to list all available prize amounts under each scratch off ticket. Not knowing there is a reduction in payout for jackpot cash values is not a winning strategy. Not posting the cash value on the PB or MM or Lotto America doesn't help the cause either. Another suggestion is to return phone calls to players. I called twice in the last 6 + years and no return call was received. There has been excessive population growth to the state & in the greater Music City area over the last 4-6 years. To have a $65 M shortfall should not be happening in my humble opinion. Perhaps people don't have the extra funds due to rising living costs over the last couple of years. While you are at it, how about pushing for complete anonymity ? Exceptions can be implemented to the TN Open Records Act. ............ Just my 2 pennies on the subject
It's the totality of the circumstances, Rebecca, that have brought you to this point. Perhaps we need new leadership? Maybe a call to Gary Grief who recently retired from the TX lottery ? https://www.lotterypost.com/news/348790
Why would Tennessee players want to play Powerball online when Tennessee hardly ever hits. We know a few will hit to get people to buy more. My suggestion is to all Cash 3 and Cash 4. I will not sign up until Cash 3 and cash 4 are added.
Tickets sales are down because there are not a lot of big winners. People are scanning the tickets and throwing them in the trash. Please Scratch them off before tossing them.
Add Cash 3 and Cash 4 and I will sign up.
Tennessee games should have been added first before Powerball, Mega, Cash4life and Lotto America.
Thank you for starting on-line at least.
IDK about TN lotto, but here in KY playing on line you can do QP or pick your own #'s.
Perhaps this is a 'test' to see how well PB on-line purchases will go and add others as they go. For some time here you could not purchase Pick 3 or Pick 4, then, like magic you could. My dedicated credit card that I chose goes for purchases, but their idea of direct bank withdrawal, IMHO which is useless may be better for some.
I see NY is doing the same thing Massachusetts lottery did. MA started where folks could scan their tickets on their phones and didn't they just start on line this year? So NY players can scan their tickets now, and the next step is obvious. When I emailed them late last year about offering consumers what THEY want their reply was basically have a nice day.
As a faithful player I would play powerball online if I as well could play the cash 3 and 4 with the wild ball online, I'm just saying