Opinion: Lottery price hike a bet folks will take
Across the nation, a lot of people spend a lot of money on the lottery.
Beginning in April, that may change for some.
Officials of the Mega Millions lottery announced the cost of a single ticket will more than double to $5, up from the current $2 rate.
Mega Millions, sold in 45 states, Washington, D.C. and the U.S. Virgin Islands, will offer improved jackpot odds, more frequent giant prizes and even larger payouts.
At a time when fewer people are buying tickets and higher jackpots are needed to get casual players involved, the goal is increased revenue and more money for state lotteries which help pay for a variety of services across the nation.
People feel comfortable with paying the increased price, lottery officials say, adding that it will differentiate it from its lottery cousin, Powerball, which will remain at $2 per ticket.
No matter how it’s counted, the lottery is a big business.
I was reminded of that recently when I ran into an old friend at a local grocery store.
After paying for a few items at the checkout, his next stop was the customer service desk where he dropped what I thought was a lot more cash than I would on a few scratch-offs, at the same time letting the computer choose numbers for several other tickets.
“You never know,” he said. “You just never know.”
But across the country, state-run lotteries know they’re the real winners.
Lottery sales totaled more than $113 billion in fiscal 2023-24. The North American Association of State and Provincial Lotteries, which tracks the numbers, says state governments walked away with an estimated $37 billion to share.
In 2023, the Pennsylvania Lottery generated a profit of more than $1.2 billion, its 13th year over the $1 billion mark.
The profit was driven by the lottery selling more than $4.79 billion in traditional games, which include scratch-off tickets and the draw games like Powerball, Mega Millions, Treasure Hunt, Cash 5, Match 6 and others. Several large jackpots increased sales.
By themselves, scratch-offs generated $3.1 billion, 65% of the total traditional sales.
Games where players choose their own numbers or allow a computer to do the work sold more than $1.4 billion.
And sales of online games increased more than 25%, totaling $62.9 million.
In all, more than $3.2 billion in traditional game prizes were paid to winners. A total of 87 winning tickets of $1 million or more went to players during the fiscal year, and nearly $863 million was paid to winners of online games.
Also benefiting were more than 10,000 licensed retailers — many small and family-owned businesses — earned more than $275 million in commissions.
States use the money in several ways, many to fund education, transit, crime, tax relief and even dealing with problem gambling.
In Pennsylvania, the lottery funds programs for elderly residents, the only state in the nation to do so.
During fiscal 2021-22, for example, lottery cash helped Carbon County folks to the tune of more than $6.5 million.
Area Agencies on Aging and senior centers got $1.57 million, while prescription assistance of just over $1 million went to PACE and PACENET participants.
Seniors took shared and free rides of more than $301,000, while property tax and rent rebates that included slots money totaling more than $2.6 million went to residents.
That’s a significant amount of assistance that helps lower costs and provide services for residents.
Despite all its benefits, though, the lottery can have some drawbacks.
The financial strain of people looking for a big win sometimes blinds people and causes them to spend money they really can’t spare. And that can lead to an addiction that could cost players savings, assets and even their homes.
It can also strain personal relationships, especially if someone may try to hide their actions or conceal spending.
Also important is the illusion of a big win especially when jackpots are huge, then dealing with the frustration of losing a large amount of money.
Lotteries are a double-edged sword. They can make people happy, either by winning or benefiting from the services they subsidize. At the same time, not being successful can cause immeasurable harm.
Regardless of the cost, the allure of a big win keeps cash flowing all over the country. A Mega Millions price increase isn’t going to slow it down.
It’s just a gamble people like to take.
ED SOCHA | tneditor@tnonline.com