Texas lottery sales hit record

By Anna M. Tinsley

atinsley@star-telegram.com

Nineteen years ago, then-Gov. Ann Richards stood at the counter of an Austin feedstore and bought the first instant lottery ticket sold in Texas.

It was a loser, prompting her response: "Oh, rats."

Since that day, more than $62 billion worth of lottery tickets have been sold in Texas, pumping more than $19 billion into state coffers.

And this year, Texans have spent more on lottery tickets -- $3.8 billion -- than in any year before.

"The growing popularity of Powerball and the continued strong performance of instant tickets were keys to our success this year," said Gary Grief, the lottery commission's executive director. "Add to that the good work performed by the Texas Lottery staff and our valuable retailers around the state, and you end up with a new standard for lottery sales in Texas."

Larry Brooks of Aledo, one of countless devout lottery players statewide, said he has been buying tickets since they were first sold in Texas.

He generally buys $5 scratch-offs, one of which yielded his biggest win, $2,000.

But he still hopes to hit the jackpot.

"It's about the excitement of possibly winning," said Brooks, who recently bought scratch-offs at a convenience store in Arlington. "You always have to have that hope, or else why play?

"I'll keep playing until my wife tells me to stop."

Ups and downs

The first year of the lottery, sales hit $591 million, jumping to $1.8 billion the next year and steadily rising to $3.7 billion by 1997, lottery records show.

When state lawmakers cut the advertising budget and dropped the percentage of ticket sales that went toward prizes, however, sales began dropping. Amid controversies and the firing and hiring of commission directors, sales fell to $3.1 billion in 1998 and $2.57 in 1999. Sales stayed under $3 billion until 2003, when they hit $3.1 billion. It wasn't until 2006 that sales again reached, and topped, $3.7 billion, according to lottery statistics.

Since then, ticket sales have steadily risen or mostly stayed the same, until this year, when sales hit a record $3.8 billion, lottery records show.

"The two main drivers of that success were the growing popularity of Powerball and the continued strong performance of instant tickets, which make up about 75 percent of total lottery sales," the lottery commission said in a statement.

New games have been added periodically -- Lotto Texas in November 1992, Mega Millions in 2003, Powerball in 2010.

Challenges lie ahead.

"As we look ahead to the remainder of this fiscal year and beyond, we're ever mindful that future lottery sales may be flat or even decrease due to several potential factors, most notably the continued maturity of the lottery in Texas, the general state of the economy, an unexpected lack of attractive jackpots in our multistate games or the always increasing competition from other gambling activities, legal and illegal, in Texas and in surrounding states," Grief said. "That said, we fully intend to keep the momentum going."

Those who opposed the lottery when it began remain opposed.

"We don't think it's good news for the state when the sales are coming from some of the poorest people in the state," said Rob Kohler, a consultant with the Texas Baptist Christian Life Commission.

Helping fund education

When the lottery began, proceeds were deposited into the state's general revenue fund, starting with $203 million the first year.

By 1997, proceeds were directed to the Foundation School Fund to help support public education in Texas. Through the years, lottery commission payments to the state have ranged from $864 million in 2001 to $1.89 billion in 1997. This year's was $1.02 billion, lottery records show.

Revenue comes from sales minus the amounts paid out for administrative costs and prizes. And different games have different payouts, causing overall payments to the state to "fluctuate from year to year based on the levels of instant and online game sales and their associated prize expense," the lottery's statement said.

Commission Chairwoman Mary Ann Williamson said, "The integrity and security of the Texas Lottery are paramount to this success. Revenue from the sale of lottery tickets in Texas is dedicated to public education, and I am pleased with the strong results this year."

Texas lottery sales

A look at sales since the lottery began in Texas.

Source: Texas Lottery Commission

Anna M. Tinsley, 817-390-7610

Looking for comments?