Arizona Lottery
Hits Record Results
Arizona Lottery sales for
fiscal year 2005 hit an all-time high of $397.5
million, $31 million more than last year's record-breaking
$366.5 million.
As a result, the state will receive $116.4
million in net profits, the highest in the Lottery's
history. Arizona Lottery Executive Director Katie
Pushor noted that the 8.5 percent increase in total
sales out-performed all but one of the five western
Lottery states. Only California, with an increase
of 12.6 percent, exceeded Arizona's growth rate.
Pushor said the Lottery's success was due to superior
results in two product lines: The Pick and Scratchers.
"Our strategic plan identified The Pick and
Scratchers as products with the most growth potential
in '05. We then focused on product improvement,
placement and promotion and hit a home run."
To improve The Pick sales, the Lottery added a
new feature called EXTRA, which for an additional
$1 per play gave players an instant-win opportunity.
The game was supported by an advertising campaign
and heavily promoted at events such as the State
Fair. "And then we got lucky," Pushor
added, "in that we also had two unusually high
jackpots for The Pick, one at $11.3 million and
one at $8.5 million."
Sales of The Pick product were up 61 percent over
last year, helping offset a decrease of almost 20
percent in the multi-state game, Powerball.
The same strategies proved equally successful with
Scratchers. The number of bins in on-counter displays
and instant ticket vending machines (ITVMs) was
increased by 6,000. Additionally, market shares
of $5 games increased from 10 to 17.5 percent and
$10 games from 9.4 to 12.3 percent. The introduction
of innovative $3 and $5 licensed property games,
such as The Price Is Right and Pac-Man Cash, tapped
into a new audience, while "second-chance drawings"
and one-of-kind prizes provided additional incentives
for players.
The Scratchers strategy also included a consistent
advertising message in the media and at the point
of sale. "Results in this product category
speak for themselves with record-high Scratchers
sales of almost $219.6 million, over $36 million
more than last year's $183.2 million," said
Pushor.
"While this is a remarkable achievement, the
real news is what these sales mean for the state,"
noted Pushor. "The $116.4 million in profit
will provide funds for projects and programs throughout
Arizona, many of which might not otherwise be possible."
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