Lottery sales remain strong in bad economy

ATLANTA --- Investors are yanking their money out of financial markets. Families are holding their pocketbooks tightly.

But one thing consumers apparently haven't shied from, even in the thick of these tough economic times, is investing in luck.

"In Georgia, the lottery seems to have held up pretty well in this economic downturn, so far," said David Mustard, a University of Georgia economic professor who has studied Georgia and other states' lotteries. "That doesn't always happen."

Whether it's due to Georgians buying more tickets in hopes of a jackpot, growth increasing the crop of lottery players or bigger jackpots and new games, the exact cause is hard to pin down.

Theories about the effect of tough economic times on lottery ticket sales cut both ways, Mr. Mustard said.

One side suggests the downturn might push some people to take more chances at riches by buying more lottery tickets. The other holds that lottery players feeling the economy's pinch could be more inclined to spend less because they have less to spend.

In the end, there may not be a noticeable change, according to Mr. Mustard.

"It's not exactly clear how that will wash out. Those effects tend to offset each other," he said.

Still, the state-run lottery, which has put more than $10 billion toward education in the state over the past 15 years, is coming off a banner year.

The lottery reached a record of more than $3.51 billion in sales in the fiscal year that ended June 30, just about the time the economy started entering crisis mode as credit markets dried up and banks failed. That's nearly $100 million more than the record sales the year before, which was wracked with foreclosures, and the highest sales figure since the lottery began in 1993.

Lottery officials were unable to provide sales figures for first few months of the current fiscal year.

Sales of lottery tickets have only dropped off once. In 2001, the year terrorist attacks dragged down the state's already recessed economy, sales dropped roughly $120 million to $2.19 billion, according to lottery annual reports. Other than that, sales have experienced year-over-year growth since the lottery's inception.

Since many players buy lottery tickets at gas stations, it would seem that sales would trickle off given the short supply of gas across the state and fewer people going into convenience stores.

Pumps went dry last week at the Kangaroo Express gas station on South Belair Road outside Augusta. However, sales of lottery tickets continued at the same pace, said employee Alley Sims.

"I haven't seen any shortage about it," she said.

Even if the economic mess causes discomfort, lottery players in Georgia can take solace in one thing: The Georgia Lottery ends scratch-off games after the top prizes are claimed.

A few other states don't share that practice. In Virginia, a man threatened a lawsuit against that state's lottery this year after learning the top prize in the $5 game he played had already been claimed. Lottery officials disputed the allegation, and said last week they had not been served with the suit.

In Georgia, players can also check the lottery's Web site to see which prizes have been claimed, a lottery official said.

Reach Jake Armstrong at (404) 589-8424 or jake.armstrong@morris.com.