Pointing to a remarkable 41 percent drop in Powerball sales in Maryland in September 2014 versus September 2013, Maryland State Lottery and Gaming Control Agency Director Stephen Martino said lottery players could be experiencing “jackpot fatigue.” The Baltimore Sun noted, “players may be becoming numb to soaring prize numbers” and, as a result, are not buying lottery tickets at pace of previous years.
In addition to Maryland, lottery ticket sales also fell in Ohio in the first half of 2014 and in Kentucky, lottery sales are not meeting state budget projections. In Missouri, formerly red-hot lottery sales also have declined, with fiscal 2014 profits $21 million lower than the year prior. University of Mississippi economist and lottery researcher Thomas Garrett said, “It follows a life cycle like any product. You get this increase in sales. It peaks. People get used to it, and then you get this slowdown.”
In addition to players becoming bored with the same-old games, a lottery study commissioned by the Washington Post indicated the spread of casinos also has hurt lottery sales. The study noted lottery sales in Maryland had increased for 16 consecutive years prior to allowing casinos in the state. The recent opening of another casino in Maryland is blamed for lower Powerball ticket sales in September. “Those two industries—lottery and casinos—tend to be substitutes for each other,” the study said.
Gaming industry proponents noted decreasing or flat lottery sales following casino openings have been temporary, and that sales are picking up again. However, in Massachusetts, supporters of the Repeal the Casino campaign said in their literature, “If the lottery takes the minimum expected hit of 10 percent from the introduction of casinos and slots, state lottery transferred as state aid to towns and cities will be reduced by about $90 million.” But casino proponents said those projections are based on outdated and flawed data, and that any effect of casinos on lottery sales is short-lived.
Still, some states are investing in newer video lottery terminals and technology to attract a new generation of lottery players. States like Ohio are increasing advertising budgets and selling tickets in new ways, such as at convenience store gas pumps and ATMs, and partnering with college teams and TV shows.
