The categories used to rank the lotteries are listed below.
The best possible score would be 100
CATEGORY & POINTS ASSIGNED –
|
WEBSITE (overall) (organization,
etc.) -- 15 |
each of the 31 students in the class rated each
website – |
|
WEBSITE (other factors) -- 10 |
|
|
Cash Value of online
games – 2 |
Some state have this information on their website, many
don’t. NASPL (North American
Association of State and Provincial Lotteries) guidelines stipulate that this
information be
disclosed. The information can be found under the heading Game Information at the following
website: http://www.naspl.org/index.cfm?fuseaction=content&PageID=39
|
|
Bilingual? -- 2 |
|
|
Odds statement on
scratch-offs (if any) – 1.5 |
All
websites have room to give the initial odds for each prize level of each
scratch game – some don’t give any odds and several just give overall
odds. |
|
Quality of FAQs – 0.5 |
Some
states have an excellent variety of FAQs, others
very few |
|
Winning numbers easily
found – 0.5 |
True
of almost all states, a few do not have on their home page |
|
Minutes and Annual reports -- 1 |
Can
any information that should be available to the public be easily accessed? |
|
Detail of problem gambling information
--1 |
Some
states give detailed tell-tale signs that someone has a gambling problem,
others just give links to help organizations |
|
Information about scratch game
unclaimed prizes – 1.5 |
|
|
SCRATCH-OFFS -- 30 |
The
class felt that this item deserved the most points because it is where the
greatest amount of lottery dollars are spent. |
|
Top price point sold -- 8 |
This
ranged from a high of $50 in |
|
"Free ticket” prize
-- 5 |
Many
states use this feature to boost the number of “winners” and odds of
“winning”. In fact, a “free ticket” prize
is not even a “break-even” prize. A
“break-even” prize is one of the prizes in many scratch games, but if you win
the prize you have the option of getting your money back. A “free ticket” prize does not give that
option, it gives you a ticket that has an average value in most states of
between $.50 and $.70 per $1 paid for the ticket |
|
Game closing procedure --
8 |
These
practices vary widely. Many states
continue to sell scratch tickets that have absolutely no chance of winning
the advertised top prize. |
|
Sales as a percent of
sales -- 4 |
A
straight mathematical calculation that was then percent-ranked. The lower the percentage, the more points
that were awarded. The rationale was
that games that give instant gratification (they are, after all, called
“INSTANT GAMES”) are more likely to cause problem gambling. |
|
Odds statement (if any) on back of ticket -- 5 |
Statements
ranged from no statement at all, “overall odds”, “overall odds including
breakeven prizes” to Texas excellent disclosure of overall odds including
breakeven prizes as well as
disclosure of the odds of winning the top prize. The BEST
PRACTICE is that followed by |
|
Bonus -- 5 |
|
|
ONLINE
GAMES -- 15 |
|
|
Odds printed on front or
back of ticket -- 5 |
Most
states have no odds information on the ticket itself. Many have overall odds. |
|
Is information printed
the back of tickets legible? -- 1 |
The
print on most is so small that it is almost impossible to read |
|
Annuity amount or cash value on ticket
-- 2 |
A
few states print the annuity amount of a game such as Lotto, PowerBall or Mega Millions on the front of the
ticket. To our knowledge, only |
|
Computer generated numbers? -- 4 |
Several
states now use a computer to generate winning numbers for their online
games. There have been two major
scandals (Arizona in 1998 and Tennessee in 2007) where the computer program
allowed players who chose certain numbers ZERO chance to win. In the
most recent example, the program had been “certified” by an “independent”
testing company. We doubt very much
that either PowerBall or Mega Millions would ever switch
to such a system because players have more faith in what can be seen than
that which is unseen. |
|
Subscriptions offered? --
1 |
1
point was awarded to those states that didn’t offer |
|
If offered, is credit card
payment OK? -- 2 |
2
points were awarded to those states that either didn’t offer subscriptions
or, even though they did not accept payment by credit card |
|
ITEMS AFFECTING BOTH ONLINE AND
SCRATCH GAMES – 20 |
|
|
Are lottery winnings
subject to state income tax? -- 4 |
4
points were awarded to states that, even if they had an income tax, exempted
lottery winnings from taxes. If you
consider lottery as an “entertainment” method of taxation, then taxing
winnings seems like a tax on a tax |
|
% of sales returned to
players as prizes -- 3 |
The
greater percentages were awarded the most points |
|
Overhead % -- 2 |
The
lesser percentages were awarded the most points |
|
Disposition of unclaimed prizes -- 4 |
The
class felt it was fairest to return unclaimed prizes to players, regardless
of the worthy cause that might receive these funds |
|
Procedures implemented or being
implemented to safeguard players from retailer fraud -- 4 |
This
has become a major issue after investigations in Canada showed store clerks
were telling players that they had won a lesser prize and then claiming the
greater amount prize themselves, including in some instances the top
prizes. Several states have either
installed or are in the process of installing machines at retail locations
where a player can first check for themselves to see
if a ticket is a winner. The problem
is being exacerbated by new games that take more skill to tell whether or not
a ticket is a winner (e.g., “If your poker hand beats our poker hand”). |
|
Time allowed to claim prizes
(Bonus/Deduction) |
180/180
the norm, some allow 1 year/1 year and got a bonus, some allow less than 180
days and got a deduction |
|
Use “Education” as a
justification -- 3 |
Using
education or really any other good cause as a reason why citizens should be
more willing to buy a product that is not totally benign seems a
contradiction. Three states ( |
|
Required age to play
and/or claim a lottery prize |
This
was added as a Bonus/Deduction question of from -2 to 2 points. For most states both ages are 18. A few states require players to be either
19 or 21 to play. Many allow a person
under the legal purchase age to actually claim a prize, although most require
the presence of an adult parent or guardian.
This would seem to encourage underage buying. |
|
GENERAL -- 10 |
|
|
Response to survey (bonus up to 3 points) |
|
|
Operate video lottery or “keno parlors”? -- 3 |
These
seem to have strayed far from the original definition of lottery, and have
been shown to be the most addictive of lottery products and thus earn no
points. |
|
CEO/COO/President/Executive Director/Secretary (all titles for
essentially the same position) compensations -- 1 |
Most
ranged from slightly below $100,000 annually to the mid $100s. Only |
|
Money spent for problem
gambling initiatives – 3 |
|
|
% of sales spent on
advertising – 2 |
|
|
Self-exclusion program |
1
point bonus to |
|
Information contained
on billboards |
1
point bonus to |