When the Powerball ticket prices were increased a few years ago, lottery players and specialists frowned upon the decision and expected ticket sales to decrease. Things didn’t go that way, and due to record jackpots the number of players even increased which translated into millions of dollars collected. While the winners were the main beneficiaries, the states also saw their revenue boosted and the Treasury has received surprisingly high amounts.
The best month in 10 years
Perhaps the highlight of this upward trend was November, when due to record Powerball lottery jackpots Louisiana lottery Corporation recorded its best month in more than a decade. There is an indissoluble link between the profits made by lottery operators and the money collected by local government, so it is only fair to say that lottery jackpots are good for the state. In the last fiscal year, the amounts collected by the treasury increased by almost 9 millions which is more than 7% compared to 2012.
Few know that the state receives a massive 35% of all lottery sales, and the money is spent on educational and social programs. When it was first introduced, the lottery was regarded as a solution for fueling underfunded the project, and lottery jackpots have done exactly that for many years. Lottery officials collect the money and direct it to state authorities, and they complained that once the money is sent they have no control over what the state chooses to spend the money on. Official data suggest that education is the sector that enjoys the largest amounts on a yearly basis.
It is all about ticket sales
While recent results are both encouraging and inspiring, lottery jackpots are only the tip of the iceberg and what really matters is keeping the ticket sales constantly high. Players are more likely to increase spending when a large jackpot is announced, but they are less enthusiastic when the main prize is average at best. If the sales are slower than anticipated, or if players regard frequent changes in ticket price as capricious and arbitrary, lottery revenue can plummet and state income will be also affected.
The authorities like the idea of funding educational projects with easy money coming from the lottery, but they can’t afford to base future forecasts on past results. Lottery jackpots are very helpful but they are also unpredictable, and it is quite possible for 2013 top prizes represent only a fraction of the November Powerball jackpot. The issue of competition was not taken seriously for many years, given the fact that in many states lottery was the only legal form of gambling. Nowadays when the competition between the private and public sector is intense, the lottery needs to adjust if it is to stay profitable.
Check out the Mega Millions jackpot won, Powerball is next as well.