Financial records for 41 state lotteries that end their fiscal year in June show 28 had higher sales than the year before. Seventeen of those states set all-time sales records.
Kate Sweeny, an assistant professor of psychology at the University of California-Riverside, said an uptick in lottery sales largely occurs when people feel a lack of control over events larger than themselves, such as the economy.
Jeff Anderson, head of the executive committee of the North American Association of State and Provincial Lotteries, which represents 52 lotteries in the USA and Canada, said sales growth most often reflects changes in lottery games.
"In general, the play is inexpensive entertainment," said Anderson, who is also director of the Idaho State Lottery. "I have not seen any empirical evidence that indicates in a down economy, people play more."
Yet that's just what a 2004 Cornell University study found. "We see that lottery sales go up as the economy gets bad — but we don't see people spending more on relatively inexpensive other forms of entertainment," said Garrick Blalock, associate professor of economics at Cornell and a co-author of the study.
California had the highest percentage gain over 2010 — 13.2% — to $3.44 billion, just shy of a record $3.6 billion set in 2006, spokesman Alex Traverso said.
Arkansas's growth was higher at 21%, but its lottery didn't start until September 2009, so the comparison with fiscal year 2010 was not over a full previous year.
Arizona posted a record $583.5 million in ticket sales and Missouri, topped $1 billion for the first time.
"I think it has a lot to do with the economy," said Abel Reynoso, who works at a gas station that sells lottery tickets in Desert Hot Springs, Calif.
"People are getting desperate."
"When it gets past a certain amount, I always play it," added Roberta Orsi, 60, a Palm Springs, Calif., resident who says she's played the California lottery since it began in October 1985.
Multiple studies of state lotteries have found that those with low incomes spend a higher percentage of their income on lottery tickets than wealthier individuals. That, combined with the correlation between a bad economy and increased lottery sales, raises questions, Blalock says.
"If what looks like is going on is actually going on, states are solving budget shortfalls with what effectively amounts to a regressive tax on the poor," he said. [Editor: Yet there doesn't seem to be any evidence that the increase of sales is driven disproportionately by the poor, so this is just an opinion.]
Buying lottery tickets is a "voluntary transaction," Anderson countered.
"If responsible adults want to decide how they want to spend their entertainment dollars, it's a little trite to say, 'You shouldn't spend that much,'" he said. "Maybe somebody can't afford two tickets to the movies, but they can afford $2 in scratch-offs. We still have freedom in the United States," he said.
Anderson questioned the significance of studies indicating the poor spend a higher percentage of their income on the lottery.
"Are they spending the bread money?" he said. "Are the children starving? Are they forced out of their home because they are playing CashWord? I don't see that."
J.P. Sira, owner of a 7-Eleven store in Palm Springs, Calif., said one thing is certain. Patrons play in the hope of getting rich quick.
"I've never seen anybody say, 'I want to help schools,'" he said.
Top record-setting states
Top 10 states that set lottery ticket sales records in fiscal year 2011, ranked by percentage of increase in their sales over fiscal year 2010:
- Arizona – 6%
- Iowa – 5.9%
- Pennsylvania – 4.6%
- Ohio – 4.4%
- Tennessee – 4.2%
- Washington – 4.1%
- Colorado – 3.5%
- Virginia – 3.1%
- Illinois – 3%
- Missouri – 3%
well I know for one that I'm spending way more this year on lotteries than last year
Dang, no love for Georgia or New Jersey? I better start helping the cause so one of my states can crack the top ten! Looks like I'll be dropping my whole paycheck on Mega Millions tonight! Wish me luck!
edit: oops didn't read the top ten list right. I thought it was just the states who spent the most period... well I got enough food this week and I can just hitch rides to work so wish me luck after getting about 400 QPs!
good luck on them 400 QPs
many people are struggling and desperate !
& it is kinda fun to maybe win millions with a small wager !!!!!!!!!!!
& when I win, I will be environmentally responsible & purchase a Flex-fuel vehicle ............
...................... the 2012 Bentley Continental GT !
"does that make me craaazy, does that make me craaaazy"
1 winner on Wednesday so nobody sues the winner because they were left out of the "pool" !
I really hope your winnings come soon, dpoly!
Thank you for your kind remark!
Kinda need the big win ................. pumping out my cellar from all of the rain! I could see the water coming in from all of the small cracks in the floor! Hellllllllllllllllllllllllllp!
Trying to remain optimistic!
In my opinion, playing the state lottery is cheaper than going to Las Vegas or one of the indian casinos once a week. However, with the current lottery ticket sales, there should be more higher lottery winners like myself
!!
Nowadays besides a lottery ticket,what else will a single dollar buy??
It is barely covering a loaf of bread now. TN changed their cash 5 game to make more money..of course I quit playing that, too. They made it like a PB game and the lower tiers don't pay anything.
Makes sense to me, our corrupted govt officials spending billions on rebuilding iraq, the lies with afgan, terrorist this/that, while americans are suffering.
Good luck to ALL of us on LP!!!
This is a sign of the times, more people have lost faith in the system. Crime is up, gambling is up, suicide is up, corruption is up. The people need a savior and not the political kind, a real statesman.
I regulate my self but the temptation to overdo it is present and very powerful. It takes every ounce of willpower I have to stop at $5 tickets a week on online games only, bear in mind I live in MA where we have $5 scratch tickets that can earn you $1,000,000.
So far so good.
Oh no, Tennessee is #5.
The Dragon Lady will take credit for it and crush anybody who disputes it.
We'll never get rid of her now.
I think I can hear her cackling with glee.
Playing the state's lottery is a lot cheaper than going to a casino. Casinos are fun, but costly for just one trip.
Maybe tonight will be my night with a Powerball win.
Best wishes to you ................
........................ but Pennsylvania & Scottdale are due for a big win !
Best wishes to you as well, Va never had a powerball winner. If i win Car is on me dpoly1.
Very nice sentiment! Thank you!
1st rule of the lottery is never make promises, they lead to lawsuits, even if you didn't make one ! I don't do that sort of thing.
Best wishes to you in Powerball tonite!
Well, since the article claimed (and I agree) that buying a lottery ticket, each draw, is considered "cheap entertainment expense" it would have been good to see what other "comparable, cheap entertainment expenses" Cornell listed in their study.
In my community, there is an old Cinemark 10 screen theator that charges $1 to anyone to most any movie at any time on Tuesdays (and senior citizens are also welcome to pay $1 for the same on Mondays).
Two additional "cheap entertainments" I can think of are: 1) Going to my community's Family Video store and renting from their large 2 for $1 DVD section of at least 2 years since released, older movies; and 2) Owning a apx. $7.99/month Video-streaming subscription to Netflix, Hulu Plus, or Amazon Prime-Streaming Only (then playing it on my standard old TV via a cheap $99 or less Roku streaming-video and music box).
The only FREE entertainment would be finding a nearby library that charges no rental fees -- then having movies, audios, and books sent via intra-library (from libraries that charge fees) loan program to the free library for pick-up. Or signing up for the free, limited book and audio download service that they chose to subscribe to.
Does any one care to, also, add some more "cheap entertainment" opportunities that they can think of or that they know that the Cornell study listed?
Sales may be up year-over-year ending June, but you couldn't tell that by the sales of the last month or so. Interest has seemed to drop off a bit, looking at the growth rate of Mega and Powerball on the latest runs.
For example, tonight is the 8th roll for Powerball and it is only up to $107m, versus $111m on the 8th in the last run, $120m on the 8th roll in May, $125m in March, and $126m in February. Or maybe it is seasonal, as the end of last year had some slower growth rates -- although that may have been because there tended to be some shorter runs, and corresponding lower jackpots, bringing fewer people out to play. But spring of 2010 had $145m on the 8th roll in May'10, $150m in April'10, and $139m in February'10. All compared to $107m tonight.
As for the regressive tax argument, just looking at the fact that "low incomes spend a higher percentage" doesn't show at all that lower-income people are "duped" moreso than the wealthier into abusively gambling their money away, as is implied. They could be spending the exact same amount per person as the wealthier, and the statistics would obviously come out this way. If you spend only $2 a week, for a total of $104/yr, of course it's going to be a higher percentage of your income if you make $30k/yr (0.3%) than if you make $100k/yr (0.1%). But it's a big stretch to imply something unfair is going on here.
Regardless, a voluntary tax is better than a forced tax any day!
Good luck to all tonight! (This comment not to be taken to imply that I want mutliple winners tonight.
Just my number will suffice.)
And get your friends out to play so we can run the jackpots up a little faster!!!
Tonight is the PB, it's a 107 million. Let's see what happens tonight. Today I bought one QP and two 2 dollar scratch offs. Well, the two scratch off were losers. I bought all from 7-11 because today is September 7, 2011.
Me neither. I had to stop my mother from making promsies to friends and even family.
Hell, you cain't hardly get a decent can of hair jelly for a dollar.
Dragon Lady
Who might that be? You know what they say every dog has their day.
Well, seeing that the lottery is the only way to get ahead in America nowadays, I can see why sales are booming.