Public Relations and Improper Use of Lottery Proceeds


Lottery sales increased by 9% in fiscal 2007 over the previous year, to $52.6 billion. Although a win does not guarantee a prize, group wins are advantageous to lotteries from a public relations standpoint. The most pressing problem, however, is improper use of lottery proceeds. In this article, we will focus on two of these issues. First, we’ll look at Group wins, which are advantageous to lotteries from both a public relations and financial standpoint.

Lottery sales in 2007 were up 9% over the previous fiscal year’s sales of $52.6 billion

A Chicago Reporter article recently highlighted the difference in lottery spending between low-income neighborhoods and more wealthy areas. While the average lottery player spends about $23 a year, people in lower-income neighborhoods spend more than double that amount. And lottery retailers in lower-income neighborhoods are much more numerous. For every 5,000 people in these neighborhoods, there were four lottery retailers compared to every 100 in high-income areas.

Lottery jackpots that are not won roll over to the next drawing

There are lots of terms in the lottery industry for the amount of times a lottery jackpot rolls over. The more rollovers a jackpot has, the crazier it gets. However, as more people win, rollovers become less common. Still, they are correct. The following are a few examples of rollovers:

Group wins are beneficial to lotteries from a public relations standpoint

Group wins are a good thing for lotteries from a public relations standpoint, generating more press coverage than single-person wins and exposing a wider group to the idea of winning a lottery. However, group jackpot disputes can lead to disputes among the players and, despite the rarity of such situations, these can arise. In such cases, the communication department should take a different mindset than it did before the outbreak.

Improper use of lottery proceeds is the most important problem

The largest issue with lotteries is the improper use of proceeds. While many states argue that lottery revenues help the community, some critics say the money is simply funneled into education programs. Regardless of what critics claim, lottery profits do constitute an implicit tax. As a result, state governments removed lottery prohibitions in their constitutions and created monopolies on the lottery. This created a source of tax revenue and a source of government discretion.

States with declining lottery sales

The lottery industry is facing tough times, with many states reporting declines in revenue. Last fiscal year, lottery sales fell by 30%. Though instant ticket sales rose, this wasn’t enough to offset the drop in jackpot games. With lottery revenues slipping, some states are considering cutting services and scaling back minimum jackpot amounts. But despite the downturn, sales are still above the national average. Despite the challenges facing the lottery industry, there are many ways to help it recover.