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Closed businesses take slice out of Pennsylvania Lottery sales

Jeff Himler
| Friday, April 3, 2020 12:27 p.m.

The nonessential business closures ordered by Gov. Tom Wolf last month are cutting into Pennsylvania Lottery sales, which could mean less money for programs that benefit older residents.

According to lottery officials, preliminary indications are sales for traditional scratch-off and draw games have dropped off by about 25% since many businesses were forced to close to help curb the spread of the coronavirus.

“Sales for lottery’s traditional products are down during this unprecedented situation as nonessential businesses close and Pennsylvanians comply with the governor’s request to stay at home,” said Ewa Dworakowski, a Pennsylvania Lottery spokeswoman. “This is due in part to the fact that roughly 30% of the lottery’s network of approximately 9,800 retailers are closed.”

It appears many people, while cooped up indoors, are passing the time by playing Pennsylvania’s online lottery games.

According to Dworakowski, online lottery play increased by 29% during the final full week in March, compared to the corresponding week in February. That doesn’t include online sales of Powerball and Mega Millions tickets, which accounted for 4% of overall sales of those two game tickets during the same period in March.

“While we are happy to see that (online) growth, a majority of our sales still come from our traditional games,” Dworakowski said. With scratch-off tickets generating an estimated 70% of lottery proceeds, she noted the current increase in online business doesn’t offset losses in traditional ticket sales.

A financial report detailing March’s lottery revenues won’t be available until later this month or early in May, Dworakowski said.

In March 2019, lottery games and sales generated net revenue of more than $101 million.

During the 2018-19 fiscal year, the Pennsylvania Lottery realized a profit of more than $1.14 billion to benefit older residents. Of that, more than $126 million went to programs in Allegheny County, about $33.8 million to Westmoreland County and $7.5 million to Armstrong County.

Some stores began curbside pickup or delivery of products as shoppers seek to limit contact with each other and with store staff. But, those who choose that higher level of service won’t make it inside the store to consider an additional lottery purchase.

Tom Ferri, owner of Ferri’s Pharmacy in Murrysville, has seen a 20% decline in lottery sales. But “the lottery is not dying,” he said, noting regular customers continue to visit his store to buy tickets.

Some other area retailers of essential products and services report their lottery sales volume has either remained steady or increased during the coronavirus crisis.

At the Shop ‘n Save supermarket on Greensburg’s East Pittsburgh Street, lottery sales are “pretty much business as usual,” said owner Tom Charley. Delivered orders are “still a very small percentage of our sales overall,” he said. “We’re not seeing any effect on lottery sales.”

When regional casinos closed, in compliance with coronavirus precautions, local gamblers instead chanced their money on lottery tickets at the Youngwood Corner Market, manager Chris Fremd believes. Lottery sales at the market “spiked when the casinos closed and now they’ve leveled off at a higher level.”

“Walk-in traffic is definitely up” at Sam’s Pop & Beer Shop in Arnold, said owner Terry Madden. As a result, he estimated lottery sales have increased between 10% and 15% during the coronavirus crisis.

Theresa Ellis of Hempfield’s Beer Arena expressed some concern that online lottery play may cut into in-store ticket sales, but she hasn’t noticed such a trend at her business. Her regular customers are still playing lottery games, but some now purchase tickets for multiple days’ drawings, to help limit their trips and the potential for exposure to the coronavirus.

“They’re not coming out as often, which is good for them,” Ellis said. “We’re all in this together. We’re all doing the best we can.”


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