As Economy Sinks, Lottery Sales Soar

Consumers tightening belts don't scratch their lottery spending

By Rob Quinn, Newser Staff

Posted Sep 13, 2008 10:50 AM CDT

(Newser) – As the economy falters, one thing people aren’t cutting back on is lottery tickets, the New York Times reports. In fact, higher unemployment rates usually mean higher lottery sales, says one study, and sales are hitting record highs in at least 22 states. “With companies tightening and not giving cost-of-living increases, you have to try to make money elsewhere,” said one regular player.

The economy isn’t the only reason for the rise. There’s also been a marketing push, including new, more expensive games that offer the chance for a bigger payout. And if the slump lasts long enough, the trend might reverse as players get fed up. But for now, as one store owner put it, “Everyone is looking for a rainbow.”

[Images (4)]

[Quotes (2)]

In this photo provided by the Michigan Lottery, Fred Topous, the latest Mega Millions jackpot winner, displays his lucky Lottery ticket on Tuesday June 17, 2008 in Lansing, Mich. (AP Photo/Michigan Lottery)

Patti Jackson of Villas, N.J. sells a lottery ticket to Helen Stinger of Cape May Courthouse, N.J. at Blitz's Market in Villas, N.J. Saturday Sept. 1, 2007. (AP Photo/ M.J. Schear)

A lottery player tries his luck. (AP Photo)

Tonya Harris, center, and husband Robert Harris of Portal, Ga., look at a pile of cardboard money during a press conference announcing him the winner of the Mega Millions jackpot of $275 million. (AP Photo/John Amis)

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It’s taking a shot at getting some relief in hard times. It’s usually not a good gamble, but it’s a dollar, and if they happen to accidentally hit it, it may well change their lives. - John Mikesell, professor of public finance and policy analysis at Indiana University

When people view themselves as doing worse financially, then that motivates them to purchase lottery tickets. People look to the lottery to get back to where they were financially. - Emily Haisley, a postdoctoral associate at the Yale School of Management

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As Economy Sinks, Lottery Sales Soar