Lottery sales up in Missouri, across nation

Despite a down economy, or maybe because of it, more Missourians are looking to the lottery.

The Missouri Lottery's annual sales topped $1 billion for the first time in the fiscal year that ended June 30. Similar records are being set all across the country.

Of 41 state lotteries that ended their fiscal year in June, 28 had higher sales than the year before, according to media expert and author Michael Levine of Los Angeles, who believes an uptick in lottery sales is the result of people feeling a lack of control over events larger than themselves, such as the economy. Levine has been studying the rise in lottery ticket sales nationwide, despite a rise in unemployment and gas prices.

Seventeen of those 28 states, including Missouri, set lottery sales records in 2011, he said.

"America is suffering from a low-grade panic disorder," Levine said. "They're in real need for distraction. They have a real need to hope that something can save them. These interplay into the decisions Americans are making to buy more lottery tickets."

Debbie Williamson tries her luck with an instant Scratcher Missouri Lottery ticket Monday, Sept. 19, 2011 at Schnuck's in Cape Girardeau. (Fred Lynch)

California had the highest percentage gain over 2010, 13.2 percent to $3.44 billion, Levine said.

People do desperate things in desperate times, especially when it comes to finances, said Georgette Johnson, a licensed psychologist at New Vision Counseling Center in Cape Girardeau.

"People watch the TV news, they're constantly bombarded with negative comments about our economy. It seems like the media plays on people's fears," she said. "They're just not thinking rationally. Some are in denial. They're trying to get money in whatever way possible, without recognizing their lack of common sense in their decision-making."

They think a winning ticket will solve all their problems, she said, and gives them an adrenaline surge.

"It keeps them occupied and distracted from the realities," Johnson said. "It gives them something to look forward to, even if it's an unreasonable expectation."

Johnson draws a distinction between someone who occasionally purchases a lottery ticket as a form of entertainment and those who possess a gambling mentality.

Retired teacher Debbie Williamson of Cape Girardeau who purchased a Scratchers ticket Monday afternoon at Schnucks said she buys one about twice a month.

"It's a bummer to lose," she said. "But I know part of the money goes to support education, so I feel good about that."

A total of 26.6 cents of every dollar spent on the Missouri Lottery benefits Missouri's public education programs; 63.4 cents goes back to players as prizes, 3.8 cents is used for administrative costs and 6.2 cents goes to retailers in the form of commissions, incentives and bonuses.

Lottery funds support 14 educational programs, Reardon said, including the A+ program, Virtual Schools, special education, construction of college and university buildings, library acquisitions and educational scholarships.

Missouri lottery sales went from $995 million in fiscal year 2008, the beginning of the last recession, down to $968 million in fiscal year 2009. Then sales went back up to $971 million in fiscal year 2010 before reaching $1 billion in fiscal year 2011.

Missouri lottery officials credit their success to increased marketing efforts, more ticket outlets and more community outreach.

In 2011, the Missouri Legislature allowed the lottery to increase its advertising budget by about 4 percent to $8 million, said May Scheve Reardon, executive director of the Missouri Lottery.

"We were able to do a 12-month campaign. In the past, we really only advertised our holiday Scratchers and maybe one other game. This helps us build momentum and keeps us in front of our players," Reardon said.

During the past year, new scratchers games also helped boost sales, Reardon said.

One popular new game is a Bass Pro Shop-themed game offering instant winnings of up to $750,000 and hundreds of $500 gift cards as prizes. Another is the Missouri Lottery's 25th anniversary cruise game in which participants could win up to $75,000 or a one of several seven-night Royal Caribbean International Cruises.

"We have one of the most aggressive prize packages. Our Scratchers are just so fun and exciting. We keep up with trends in the market," Reardon said.

Lottery proceeds transferred to the state for public education programs totaled $259,424,366 in fiscal year 2011. Monday the Missouri Lottery made its largest monthly proceeds transfer ever, transferring more than $29 million from August ticket sales.

Reardon expects lottery sales to continue to increase through 2012 and hopes to transfer $267 million in proceeds to education this fiscal year.

mmiller@semissourian.com

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