Lotto Spending Becomes Latest Recession Casualty

June 1, 2009

This article is included in these additional categories:

Analytics, Automated & MarTech | CPG & FMCG | Financial Services | Media & Entertainment | Retail & E-Commerce | Women

Despite dreams of “hitting the big one” and rising above the current economic crisis with a lucky Powerball payout, 46% of American lottery players report they are now cutting back on their personal expenses by reducing or eliminating their lottery spending, according to a study by Ipsos.

Survey results indicate that 38% of lottery players say they now spend less on lottery games, while 8% have cut them out entirely.

“Lottery players seem to be employing similar coping strategies as average Americans are when it comes to the purchase of non-essential, low cost items,” said Paul Lauzon, SVP of Ipsos’ Lottery & Gaming research practice. “For those Americans who may be struggling during this recession, it is clear that part of their coping strategies include reducing their spending on lottery games as these items are viewed by some as having a lower priority.”

These cutbacks, Ipsos said, are comparable to other spending-reduction behaviors reported by the US population at large over the past 2 to 3 months.

When it comes to shelling out less for, or cutting out purchases of non-essential, low-cost items, the study found that Americans also report reduced spending on the following items:

  • Snack foods (42%)
  • Video/DVD rentals (41%)
  • Going to the movies (51%)
  • Eating out (49%)
  • Buying books or magazines (39%)

Reasons cited for cutting on lottery purchases also mirror the reasons for cutting back on non-essential purchases, except that more people articulate specific reasons for cutting back on lottery purchases, Ipsos said.

For example, about one-third (34%) of past-year lottery players (and 37% from households earning under $50K per year) who acknowledge stopping or spending less on lottery games report that they now have less money or disposable income than in the past. Nearly one in five (19%) say lottery purchases are not priority items for them.

Among past-year lottery players, significantly more women (52%) than men (40%) report stopping or spending less on lottery game purchases, Ipsos found. Similarly, significantly more respondents from households earning less than $50K a year (54%) or with children in the household (56%) report stopping or spending less on lottery-game purchases compared with respondents from households earning more than $50K a year (40%), or households without children (41%).

About the survey: The English-language survey was conducted from March 16 – 19, 2009 among 1,007 US adults (ages 18+) selected randomly across the nation.? The data were weighted to ensure that the sample’s composition reflects that of the actual US population according to US Census figures.

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