Lottery players in South Carolina are a diverse group. About 17 percent play frequently or more than thrice a week. About 13 percent play every week, with the rest playing one to three times a month or less frequently. Most frequent lottery players are middle-aged, high-school educated men in the middle class. In fact, in South Carolina, lottery players are three times more likely to be black than white. In South Carolina, lottery players are more likely to be high-school educated and from the middle class.
Lottery commissions are a multimillion-dollar business
The lottery commissions employ just a few thousand people nationwide. While the vast majority of lottery sales go to lottery winners, retailers receive commissions for selling tickets and cash bonuses if a winning ticket is sold. These lottery retailers earn between five and seven percent of all sales. This money is then turned over to state lottery commissions. However, some lottery retailers have found that the commissions are actually a better business deal than selling tickets directly.
Lotteries generate revenue for states
State lotteries help fund important community programs and maintain a high quality of life in states. In FY2018, lottery revenue funded 39% of the funding for six state arts agencies. Additionally, states receive a significant portion of lottery revenue to fund gambling addiction treatment. According to the National Council on Problem Gambling, approximately two million adults in the U.S. are addicted to gambling. As a result, many states have set aside a portion of their lottery revenues for this purpose.
People buy lottery tickets to improve their financial situation
It is no secret that lottery agencies have a strong financial interest in making people gamble, and one study suggests that it is even more important when times are hard. According to Prof. John L. Mikesell of Carnegie-Mellon University, people tend to buy lottery tickets to improve their financial situation when they feel desperate or hope for a windfall. Although the study does not prove this correlation, it does indicate that people may be purchasing tickets to help improve their financial situation.
Rollover jackpots spur ticket sales
Lottery players are drawn to rollover jackpots because they tend to be higher than average payouts. More people buying tickets means higher jackpots, and when jackpots increase, ticket sales spike. That’s a good thing for ticket sellers, as a larger jackpot means higher chances for winning. But rollover jackpots can also be problematic for the lottery. The following are some tips to make rollover jackpots more appealing to ticket buyers.
Problems with jackpot fatigue
One study revealed that ticket sales in the US Powerball sweepstakes plummeted by 40 percent during the second half of 2014. Experts attribute the slump to “jackpot fatigue,” a phenomenon where players become impatient with increasing prize amounts. This leads to lower ticket sales and stunted prize growth. Powerball ticket sales dropped by 41% in September 2014 in Maryland, a state that participates in the lottery.