LOTTERY
by Patricia A. McQueen
October 1, 2010
There are now 44 U.S. lotteries, including the Arkansas Scholarship Lottery, which began operations in September 2009. Of the 43 with prior-year sales, 30 reported a sales increase in fiscal 2010, with the remaining 13 down in sales. However, most lotteries posting declines were down less than 5 percent, with none experiencing double-digit declines. That’s a marked contrast to other sectors of the gaming industry, many of which have continued to post serious losses in gaming revenue as the recession continues to take its toll.
As always, we remind readers that there are numerous factors that determine how well lotteries do in any given year, many of which are out of operational control, such as the types of games allowed, prize payout limitations and the luck of the draw in jackpot games. That said, things such as good management of the product mix and innovative marketing tactics can help a lottery’s performance even if other factors are working against it.
Two lotteries managed to post double-digit gains in fiscal 2010, Arizona and North Dakota, the latter being the country’s smallest lottery and the only one without instant ticket sales.
The Arizona Lottery grew the most in percentage terms during the year, increasing sales by 13.8 percent to a new record level of $551.9 million. The lottery also posted the largest growth in instant ticket sales (almost 21 percent) of any U.S. lottery, which is credited for much of Arizona’s overall sales increase — instant tickets account for 61 percent of the lottery’s total sales. Executive Director Jeff Hatch-Miller cites notable changes to the instant games, which now offer “bigger prizes, higher payouts and more winners”. He also mentions the continued success of the lottery’s $100 Million Cash Spectacular instant ticket game, and the introduction of new products such as Mega Millions, as contributing to the lottery’s success.
CROSS-SELLING FIGURES BIG
Patricia A. McQueen
is events editor for BNP Media Gaming Group. She can be contacted at +1 508 788 1367; and by e-mail at mcqueenp@bnpmedia.com.
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