States Lose Lottery Revenue Many state lotteries are reporting a downturn in ticket sales and revenue for the first time. The decline in revenue will adversely affect states where the lottery is used to fund education. Although many states are expanding gambling in hopes of shoring up their budgets the decline in sales indicates that gaming is not exempt from economic forces such as the current global recession. The casino industry has also reported a drop in revenues.

States that have invested heavily in gaming have been hit hard. New Jersey reported a $62 million dollar drop and Nevada reported a $122 million dollar drop in gambling related revenue. Many states have taken measures to entice gamblers back to casinos. New Jersey repealed a smoking ban and Illinois may allow free drinks on riverboat casinos.

Indiana has also been hard hit by the downturn. The Indiana lottery reported a 17% drop in lottery profits. The state's take from the Hoosier lottery dropped from $217 million to $178 million. Higher priced Indiana lottery tickets have been partially blamed for recent losses. Indiana lottery players are purchasing lower priced lottery tickets and many players cite smaller jackpots as the reason for the sharp decline. The largest jackpots available to Indiana lottery players are the jackpots offered by the multi state Mega Millions lottery. Oregon and Arizona have both reported declining sales which are affecting many government agencies that rely on lottery funding.

Many states fund education exclusively through lottery revenues and declining sales are affecting education funding. Many experts say the decline is temporary and say that the lottery and casino industries have room to expand. Other experts say that states should not depend on gambling revenues to fix state deficits. Lucy Dadayan of the Nelson A. Rockefeller Institute of Government stated, "The data shows that states take a real chance in depending on gambling because this revenue is not likely to keep pace with growing budgetary needs. In the absence of new types of gambling, it can become a zero-sum game as states compete for the same pot."

Because of the downturn many states will be forced to come up with new games and original promotions designed to attract new players and retain the present lottery customer base. It is widely hoped that once the recession loosens its grip on the economy lottery ticket sales will increase again. The US may want to adopt the European policy of allowing the sale of online lottery tickets. The ability of players to purchase lottery tickets online has been wildly popular throughout Europe. For states strapped with massive budget deficits allowing the sale of online lottery tickets may help to close budget gaps.