Lottery options have changed a great deal over the years.
No area exemplifies that more than scratch tickets.
While lottery draw games have had small alterations to price points, scratch tickets have raised the bar for how far things can go consistently.
What was once a category that included some $1 or $2 games now has options climbing up to as much as $100 in select areas.
As ticket prices expand, it feels as if the $1 ticket is getting phased out of existence.
Scientific Games, one of the leading lottery game creators in the US, recently did research on the matter to vouch for the importance of these smaller price points.
Lottery sales of $1 tickets steadily declining
The North American Association of State and Provincial Lotteries (NASPL) recently held a Professional Development Seminar in Omaha, Nebraska.
During that event, Scientific Games had a presentation on the role $1 and $2 scratch tickets play in the overall lottery landscape.
Scientific Games took on an extensive research project, keeping three key points in mind:
- Explore the idea that different price points satisfy one or more specific needs of the consumer
- Better understand the role of each price point in order to create games that strengthen playership
- Expand the understanding of the interdependencies between price points to create a holistic and valued product line
SG consulted with players about what they look for in terms of playing experience and game attributes, including prize structures and game odds.
According to the report, the $1 price point has declined in game launches by 23% over the last five years. On top of that, it has seen a 38% drop in weekly per capita sales during the same time period.
Despite that, SG found that the lower price points still meet consumers’ needs.
Players looking for familiarity, affordability
The report detailed four sets of questions regarding player behavior, mostly in relation to purchasing lower-priced tickets.
Below are the results Scientific Games found:
What kind of experience were you ideally looking for when you purchased your last lottery ticket?
- A win that would make my day: 48%
- Escape to comfort zone: 39%
- Take a little risk: 36%
- Enjoy the experience of playing: 36%
- Adding thrill and excitement to my day: 30%
- Sharing with others: 27%
- Win a life-changing amount: 26%
What functional benefits were you ideally looking for?
- Entertaining quick win: 59%
- Affordable: 57%
- Easy to play: 54%
- Convenient and easily available: 43%
- Has good odds: 24%
- Has a number of ways to win: 19%
- Smaller/lower-tier prizes: 18%
What are your favorite playstyles for games?
- Match 3: 51%
- Symbol Match: 45%
- Key Number Match: 45%
- Tic Tac Toe: 29%
- Find: 23%
What themes do you play most often?
- Numbers: 40%
- Multiplier: 36%
- Holiday: 31%
- Money: 30%
- Seasonal: 28%
Based on these questions, SG surmised that $1 players are seeking familiar games that are part of their routine and allow them to stay in their comfort zone.
Of those who played $1 games, 21% said if they were to buy another price point, it would be $2. Of the $1 players, 63% indicated they wouldn’t buy a more expensive ticket.
Because of that, SG believes that marketing the right games with informed prize allocations can help keep $1 tickets part of the lottery landscape.
Georgia, Ontario moving away from $1 tickets
This topic was discussed during La Fleur’s Raleigh Conference in May, as some states and territories are moving away from the $1 ticket.
The Georgia Lottery Corporation (GLC) put together a presentation about phasing out the $1 option over the last fiscal year.
The GLC noted that US sales of the price point had declined from $4.5 billion in FY06 to just $1.5 billion in FY23.
After select testing in FY23, Georgia decided to stop manufacturing new $1 scratch games in hopes of moving those players onto the $2 products or even higher price points.
The GLC adjusted its $2 games to include some that looked more like the $1 games they previously produced.
Georgia still gave retailers options, leaving two $1 games available in its stock if they wanted them for their inventory. Less than 50% chose to do so. When questioning customers, the GLC found that 56% didn’t even notice the $1 options were no longer available.
The state reported the loss in $1 sales was made up by the increase in $2 ticket sales.
At that same conference, the Ontario Lottery and Gaming Corporation (OLG) detailed its results from removing $1 tickets from its production line.
The OLG noted that $2 instant sales immediately jumped by 49%. For the year, $2 ticket sales increased in volume by 37%.
To aid in the $1 removal, the OLG improved the odds and prize charts for the $2 games. It increased the overall payout rate of the price point from 61% to 67%, while giving away more total prizes, as well.
The OLG also increased the rate of new $2 games to keep things fresh for customers.
These changes were expected to lead to a 16% increase in scratch sales for the fiscal year.
Photo by LightField Studios via Shutterstock
Graphic from Scientific Games
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