Demographics Study Overview
 

On-line Lottery subscription services could add literally millions of dollars in revenue to your State budget, with NO tax increases. This can be done within the current structure of the lottery through current existing licensing procedures and additional guidelines that could be done with administrative decisions . 

Subscriber Profile

The profile of a potential subscriber is someone who does not regularly play Lotto, who could subscribe to the lottery, but does not have the time or the desire to purchase from current venues. These people are over the legal age, have played the lottery, done on-line banking and/or purchased stocks, and/or merchandise over the internet.  

Market Segmentation

We used data from a U.S. lottery-marketing group, the Director of Sales, Pew research, the Gallup poll, and the U.S. Census Bureau.

  • 4,594,200 or 74.1% adults over the age of 18 in this state (U.S. Census bureau)

  • 2,618,694 or 57%* play the lottery once or more in the previous year (Gallup poll)

  • 1,466,468 or 56% of adults have gone on line in this state. (Pew research internet by region)

  • 982,534 or 67 % have purchased/paid bills (Pew research 2004)

Based on the above data there are at least 982,000 adults who have played the lottery, gone on-line and purchased products or services. 

Who buys lottery tickets?

A recent Gallup Poll on Gambling in America found that 57 % of American adults reported buying a lottery ticket in the past 12 months. People with incomes of $45,000 to $75,000 were most likely to play—65% had played in the past year—while those with incomes under $25,000 were least likely to play at 53%.  Further, people with incomes in excess of $75,000 spend roughly three times as much on lotteries each month as do those with incomes under $25,000. 

Research findings with income as the primary basis

According to the 2000 U.S. Census (www.uscensus.gov ) 951,127 households in this state had incomes of $50,000 or greater. Based on a survey done in 2004 by the Pew Institute (www.pewinternet.org ) 80% of households with incomes of $50,000 go on-line, and 67% have gone on line and purchased.

  • 760,901or 80% of this population goes on line (Pew Research 2004)

  • 433,713 or 57%* play the lottery once or more in the previous year.

  • 290,588 or 67% have purchased on-line minimum potential

Based on the above data there is a minimum potential of 290,000 or 29.5% of adults who have played the lottery, gone on-line, and purchased products or services.

*57% is the national average of adults playing the lottery in the past 12 months. Other benchmarks are 32% in California to 67% in Virginia.

Conclusion

It is our conclusion that a sufficient number of potential players, at least 290,000, based on our estimates in this state, could participate in on-line lottery subscription services. This could generate:

 Total Subscription revenues for this Lottery, in year one $15,145,000

         Our assumptions for this estimate are based on:

         average ticket sale $5.00 (Director of Sales suggested)

         average draws per month 8.5 (104 per year)

         month 1 of operation, we attract 6000 subscribers

         year 1 monthly subscriber growth 20%

         monthly attrition rate of 2%

Total subscribers                        58,252

Subscriber average                    $   260

                                            $15,145,000