In recession, many see lottery worth the gamble

Of course, many people do not realize that routine spending on lotteries can be just as costly as the occasional visit to a casino.

"Small ticket purchases add up over time," said Emily Haisley, a postdoctoral associate at the Yale School of Management who published a research paper on lotteries in The Journal of Behavioral Decision Making in July.

The Rockefeller study found nationwide total lottery revenue has climbed steadily since 1992, rising to $17.4 billion in 2007, the most recent year for which data were available. Lottery revenue increased most rapidly over that 15-year period during the 2001 recession, according to the study.

Some researchers see a correlation between economic difficulties and the popularity of lotteries.

"When people feel like they are behind compared to where they were yesterday, they want to make up for that," Haisley said. "They become risk-seeking in order to catch up and the small hope of winning becomes more attractive."

John L. Mikesell, a professor at Indian University, published a study in 1994 illustrating lottery sales rise with unemployment rates.

"When times are tough, the prospect of spending $1 on a remote chance to potentially change your life is appealing," Mikesell said.

Bill Cooper, a 60-year-old a from Chattanooga, Tenn., was still savoring his $500 win from a day earlier on a $1 Cash 3 pick that helped the disabled painter pay for groceries, a title loan, and some IOUs.

Allen Nevils, a 58-year-old moving company supervisor, put himself on a budget, driving less and purchasing groceries in bulk, but he still allots $20 a week to play daily lottery games.

"I really don't want to win that much," Nevils said. "I just want to be alright."

Lottery officials say creative marketing is a key factor in the rising popularity of their games.

Since 2004, New York has added 13,000 blinking, beeping video lottery terminals similar to slot machines at eight harness tracks, adding $875 million, or 13 percent annually, to sales, according to New York lottery spokesman John Charlson.

Maryland Lottery has partnered with Major League Baseball's Baltimore Orioles and the National Football League's Baltimore Ravens to promote bubble gum-scented scratch-offs, sell lottery tickets at games and give season tickets as prizes.

California's aging 30-minute lottery show is getting a $14 million makeover and changing its name to "Make Me A Millionaire," where players can win a spot on the weekly show through $1 scratch-offs.

Atwood, a 68-year-old telephone company retiree, said he has spent at least $75,000 on lottery tickets since the Tennessee lottery began in 2000.

Playing recently at a Nashville convenience store that boasts it is home to two $1,000 scratch-off winners on neon colored advertisements, Atwood handed a winning scratch-off to a clerk. That got him a $5 scratch-off ticket and $1 discount toward another.

"I am absolutely not acting in my best economic interest," Atwood said. "But we always hope that we win big and that is what drives us."

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