Powerball sales dropped by around 20% nationally in the second half of 2006.
Powerball, once the darling of Australian lottery games, is in trouble. Sales are falling across the country based on data I am seeing. Punters are migrating to OzLotto with sales of that game up by more than 50% – higher in some states. While it is hard to get a full national view, I have seen data from enough outlets to be confident in my assessment.
I am surprised by the extent of the Powerball sales fall since Thursday is a strong retail day and, for many, it’s still payday. However, since many are now paid electronically the payday view no longer holds.
If Powerball is to continue newsagents and other lottery retailers need to get behind the game and push it. Like any lottery product, it comes down to how well we sell the dream – across the counter, in posters and through in store offers such as syndicates. Arresting the sales slump ought to be a priority.
Lottery products are important to newsagents. 80% of the customers purchase out of habit. Enough buy other things to make them valuable to us beyond lotteries. We need to ensure that the habit is maintained and hence the need to support Powerball.
Mark, your analysis doesn’t appear to take into account the fact that the second half of last year also saw something of a “slump” in the Powerball jackpot sequence.
As I’m sure you know, Powerball is very jackpot driven – it’s part of the luck of the draw that sometimes (unfortunately for us newsagents) the jackpots just don’t get a chance to “get up”.
Maybe you should take that into account before you “mouth off” against lottery companies – like you do to all of your other suppliers.
Phillip, I’d hardly call my short blog post an analysis. It’s certainly not a criticism of lottery companies as you suggest. Indeed, it is a call to action to newsagents. Or are you reading a different blog post.
I don’t know why Powerball sales have fallen so dramatically. Maybe it is the jackpot impact. Maybe, it is also due to OzLotto growing in the jackpot game. That conclusion is outside the scope of the post.
Mark
Mark it is interesting that you note OZ Lotto is up more than 50%. I wonder how much overall lottery sales are up or down nationally? Id love the figures if you have any (Our rep wont be around for a few weeks).
Could the decrease in powerball be a direct reflection of an increase in other games. Australia has some of the highest amounts spent on gambling per capita in the world. Are lotteries at a point where continual large growth figures are unrealistic. Of course there will be increases in indiviual agencies as a result of that agencies tactics, but are such increases really achievable on a wider scale and long term? Are the habits of our customers changing? And if so, why?
Kind Regards,
Jarryd Moore
Jarryd, I’d expect the national sales increase to be somewhere between 3% and 5% for the six months to Dec. 31, 2006. Mark
What do they expect when they continue to alter the jackpot cycle of each of the different lottery platforms.
They can’t keep chopping and changing the cycle when it suits them. I remember Powerball being at $33 Million (will we ever see it back at that level again).
Powerball used to excel because of its far more generous jackpot cycle.
NSW Lotteries have even taken an axe to the maximum prize in scratchies. Some customers no longer find them interesting; as in the case of some games you scratch only 1 spot.
Matt its a very difficult balancing act. Lotteries cannot stay stagnant forever, change is inevidable and it need to keep up with the market. It may seem overwhelming as there have been quiet a few large changes to lotteries products over the past year or two.
I think these changes have unsettled many of the players. Lotteries now needs to back down and let players develop an understanding of the new products/formats. This will eventually lead to player habits and less confused players (and agents).
As for scratchies, we havent encountered much customer reaction (positive or negative). Speaking personally, i purchase the odd scratchie every week or two and i dont take any notice of the max prize. But i will agree with you on the scratchies with only one place to scratch. It is not very appealing, but again we havent had much customer reaction. I dont think people are expecting a whole lot when the buy those particular scratchies anyway.
Like Mark has iterated, 80% (depending on your agency) of customers purchase out of habit. If lotteries is going to continualy change their product, how can habits be sustained or established in the first place?
Dear Lottery bureau,
I have send the document of claim my prize that i have won whit the post.
Send me the real cheque directly.
It is about millions.
Sign:Angelo*Martis
Steurweg 130 3192AH Hoogvliet Rotterdam
The Netherlands