Lottery looks to power of new game
Sunday, May 28, 2006 posted 02:53 AM EDT
RALEIGH — Western North Carolina lottery retailers are banking on Powerball to bring back the business boost that had come with the start of scratch-off ticket sales.
State lottery officials likewise expect the multistate game to turn around waning interest since the start of ticket sales two months ago. Powerball gets under way Tuesday.
With jackpots in the tens of millions, if not hundreds of millions of dollars, the game generates interest from players who might not otherwise play lotto games and profits for retailers, who earn a 7 percent commission of lottery sales.
“Large jackpots make large numbers of people interested in the games,” said Max Cogburn Jr., a state lottery commissioner from Asheville. “Powerball is the most popular of these games.”
An estimated $420 million in lottery proceeds are earmarked for college scholarships, public school construction and education programs.
State senators approved an $18.8 billion budget last week that counts on $127 million from the lottery to pay for reducing class sizes and the governor’s volunteer preschool program.
Sagging sales
Lottery ticket sales soared toward meeting those goals when the games began March 30, with retailers enjoying streams of customers buying soda, candy and other items while scratching their way to prizes from a few dollars to thousands of dollars.
“Truthfully, it boosted our inside sales,” said Chad Sizemore, a manager at Kounty Line Convenience Store in Fletcher. “On the first day of the lottery, we made almost $17,000. The average day is about $8,000 to $9,000.”
Sales totaled $16.7 million during the first few days, spiked at $28.6 million during the first full week and dipped to $14.8 million last week.
“The initial excitement has faded and we have only nine scratch-off games available,” said Alice Garland, a lottery spokeswoman. “At this point, we have a lottery in its infancy. We expect sales to increase as we introduce new games.”
Other states suffered through similar growing pains when launching lotteries with scratch-off tickets.
South Carolina started with scratch-off games in 2002 and saw sales cut almost in half during the first four months.
But S.C. lottery sales ultimately exceeded expectations. South Carolina projected the lottery to produce $179 million for education programs during the first fiscal year of sales. The lottery transferred $300 million from January 2002 to June 2003 to South Carolina’s education lottery account.
Instant ticket sales in Tennessee’s lottery in 2004 fell from $34.6 million a week to $9.5 million during the first 18 weeks.
The Tennessee lottery was expected to produce $88 million for education programs. The lottery generated $123 million for education, according to its 2004-05 annual report.
Ready to play
Michael Goforth, owner of Sand Hill Grocery in Buncombe County, is ready to sell Powerball tickets.
He was among the 5,700 retailers across the state that went through Powerball training. The point-of-sale signs, computer and play slips are all ready to go.
Retailers across the state will use the same computer terminals for Powerball that they use for other lotto games.
Ads promoting the games ran last week and will continue. The television commercials are animated and simulate white balls and the red Powerball going through a chute similar to a real Powerball drawing. It begins with a loud roaring sound.
“The message,” lottery officials say, “is that something big is coming.”
Red billboards posting the latest Powerball jackpot amount went up across the state with more to come. Workers posted the first billboard May 19 in Winston-Salem. Lottery officials said they’re working to get billboards in Western North Carolina.
“Sales are down slightly, but not like some of the other places,” Goforth said. “I think Powerball sales will be like the scratch-offs were in the beginning. Overall, it’s going to increase business.”
The Associated Press contributed to this article.
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