Horse Racing Forum - PaceAdvantage.Com - Horse Racing Message Board

Go Back   Horse Racing Forum - PaceAdvantage.Com - Horse Racing Message Board > Thoroughbred Horse Racing Discussion > General Racing Discussion


Reply
 
Thread Tools Rate Thread
Old 10-21-2018, 07:00 PM   #16
Jeff P
Registered User
 
Jeff P's Avatar
 
Join Date: Dec 2001
Location: JCapper Platinum: Kind of like Deep Blue... but for horses.
Posts: 5,239
Quote:
Originally Posted by dilanesp View Post
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.
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."


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.

Attached Images
File Type: jpg FACTSHEET-GA-Lottery.JPG (165.7 KB, 4 views)
__________________
Team JCapper: 2011 PAIHL Regular Season ROI Leader after 15 weeks
www.JCapper.com

Last edited by Jeff P; 10-21-2018 at 07:15 PM.
Jeff P is online now   Reply With Quote Reply
Old 10-21-2018, 07:23 PM   #17
dilanesp
Registered User
 
Join Date: Aug 2012
Posts: 8,788
Quote:
Originally Posted by Jeff P View Post
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





FACT SHEET
Profit Optimization for Georgia Education
THE IMPACT OF PRIZE PAYOUTS ON RETURNS TO EDUCATION:
https://gas-cdn.lotteryservices.com/...timization.pdf
You are ignoring an incredibly basic issue, which is where the two games' takeouts sat on the demand curve.

The fact that the lottery correctly lowered a 50 percent takeout does not prove anything about a 20 percent takeout.
dilanesp is offline   Reply With Quote Reply
Old 10-21-2018, 07:27 PM   #18
Jeff P
Registered User
 
Jeff P's Avatar
 
Join Date: Dec 2001
Location: JCapper Platinum: Kind of like Deep Blue... but for horses.
Posts: 5,239
It shows that the closer you get to the optimal price point (which varies by game or wager type) the better your performance - and the greater your total gross profits will be.

Can we at least agree on that?


-jp

.
__________________
Team JCapper: 2011 PAIHL Regular Season ROI Leader after 15 weeks
www.JCapper.com
Jeff P is online now   Reply With Quote Reply
Old 10-21-2018, 11:17 PM   #19
kingfin66
Bombardier
 
Join Date: Sep 2003
Posts: 4,033
Quote:
Originally Posted by Buckeye View Post
I bought my ticket.

Cost me $2

and I can afford that.

(I will not tell which numbers I played, sorry.)
Yeah, heaven forbid that any of us would ride coattails on your action.
__________________
They don't think it be like it is, but it do. ~O.Gamble
kingfin66 is online now   Reply With Quote Reply
Reply




Thread Tools
Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

» Advertisement
Powered by vBadvanced CMPS v3.2.3

All times are GMT -4. The time now is 12:40 AM.


Powered by vBulletin® Version 3.8.9
Copyright ©2000 - 2024, vBulletin Solutions, Inc.
Copyright 1999 - 2023 -- PaceAdvantage.Com -- All Rights Reserved
We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program
designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.