All About Lottery Advertising and Economics

How Much Do Lotteries Advertise?

In 1996 North American lotteries spend $400 million ($US) on advertising and received $34 billion in sales. Advertising expenditures accounted for 1.17 percent of total revenue. By contrast, in 1996 restaurant owners spent 3.2 percent of their revenues on advertising, beverage manufacturers spent 7.5 percent, cosmetics companies spent 8.8 percent, and candy makers spent 12.7 percent. Advertising accounts for less of the cost of a lottery ticket than virtually any other consumer product.

Why Isn’t Lottery Advertising Regulated By the Federal Trade Commission?

Lotteries are not subject to FTC regulation because they are operated by state governments, and the federal government cannot regulate state government programs. Unlike other products, however, lottery advertising is subject to review and restriction by governors and state and provincial legislators.

Who Regulates Lottery Advertising?

Lottery advertising is regulated by the states and provinces in which lotteries operate. Many have adopted formal laws, standards, or guidelines about what is and is not appropriate for advertising in their jurisdiction, and most states have elaborate review procedures to prevent potentially offensive advertising from appearing. In addition, the North American Association of State and Provincial Lotteries have established advertising guidelines to provide direction to member lotteries in developing their advertising standards. These guidelines are extensive and incorporate aspects related to compulsive gambling, beneficiary funding, and more.

Does Lottery Advertising Create Compulsive Gamblers?

Compulsive or pathological gambling arises as a result of some combination of biological and psychological factors predisposing an individual to addictive behavior. A person does not become a compulsive gambler simply because of lottery advertisement, just like a person does not become an alcoholic because he sees an advertisement for alcohol.

Do Lotteries Contribute to the Economy?

Lottery revenues contribute to the economy in a number of ways. Certainly that portion of lottery sales which return as prizes is simple redistribution, but revenues are also distributed to over 240,000 retail outlets as commissions, to the companies which supply lotteries such as ticket printers, data processing companies, advertising agencies, and delivery services, and most importantly, for the provision of goods and services through the programs lotteries were created to support.

If You Don’t Win Have You Wasted Your Money?

Lotteries are perceived by players as a form of entertainment, like a sports event or going to the movies, not as a financial investment. Winning a prize is not the only benefit of playing the lottery – the lottery also offers entertainment and also funds many state programs. Those who play the powerball lottery, or the mega millions lottery, or any of the many forms of lottery games, play not only because they want to win, but also because it is fun!

This information was found at www.naspl.org (North American Association of State and Provincial Lotteries)

Buying Online Lottery Tickets

At the present time most US state lotteries do not allow players to buy online lottery tickets. Most lottery experts say that in the very near future many state lotteries will offer players online lottery tickets.