Quote:
Originally Posted by dilanesp
Scratchers are the preferred product for compulsive gamblers, because you don't have to wait to find out if you won. They are like slot machines in a casino.
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Believe it or not scratchers players are price sensitive.
More than 30 years of real world case history exists (dating back to the 1980's when Massachusetts became the first state lottery to try it) that shows state after state engineering turnarounds for their state lotteries by increasing the prize payout percentages (lower takeout) of their scratchers games.
--California:
AB142, a bill authorizing the CA Lottery to LOWER the Takeout on Scratchers Games, was signed into law in 2010 by CA Governor Arnold Schwarzenegger.
Unlike horse racing (which took the opposite approach and raised racing takeout with SB1072) the CA Lottery has been able to leverage LOWER TAKEOUT to drive brand recognition and generate significant increases in both sales and total revenue for Education.
Here's a quote from Linh Nguyen, Acting Director, California Lottery when asked how AB 142 enabled the California Lottery to generate an increase in revenue flowing to state coffers:
http://www.publicgaming.com/index.ph...0:public-gamin
Quote:
"Increasing the prize payout percentage improves the product's value to the consumer, provides us with a powerful message that gets consumer attention, and gives us a tool to drive sales and profits.
A relatively small increase in prize payout percentage can be leveraged into a much more significant increase in top-line sales.
Although the increase in prize payout percentage leaves a smaller percentage to be transferred to education, the total dollars going to our beneficiary goes up. And at the end of the day, you can spend a dollar, but you can't spend a percentage. So these changes have resulted in increased funding to education and that's what our constituents care most about and the reason the Lottery was created in 1984."
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FACT SHEET
Profit Optimization for Georgia Education
THE IMPACT OF PRIZE PAYOUTS ON RETURNS TO EDUCATION:
https://gas-cdn.lotteryservices.com/...timization.pdf
Quote:
• The best performing lotteries in the United States have instant prize payouts between 65% and 76%. The key to the success of these games with consumers is the frequency of winning prizes.
• Out of 44 lotteries in the U.S., Georgia is 2nd in per capita instant sales, with an instant prize payout percentage of 71.3% in FY14. It is 2nd in per capita returns to beneficiaries from instant games among all leading U.S. lotteries. Only Massachusetts has higher per capita sales of instant tickets, and they have the highest instant prize payout at 76%. They also have the highest per capita return to beneficiaries.
1. Sales and profits increase significantly for every state that has raised payouts.
• Virtually every lottery has implemented higher prize payouts in their instant games than in their online (draw) games. And every time, without exception, raising the payout has increased sales and actual dollar returns to beneficiaries.
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