2. FY2016 Powered by Powerball
According to data from the North American Association of State and Provincial Lotteries (NASPL), total US lottery sales for all traditional games for FY2016 were $73.48 billion, a 9.4% increase from FY2015’s $67.14 billion.
The NASPL includes net revenues for gaming operations in some states from electronic gaming machines and table games in its grand total of $ billion for FY2016.
The primary impetus behind this significant increase was the January record-setting Powerball jackpot of $1.58 billion, which was almost 2.5 times more than the previous US record as well as a new world record.

3.   Peak Performers
Canadian lotteries performed even better than the US during FY2016, totaling $10.36 billion (including electronic gaming machines and table games), a 13.5% increase.
The top 5 states in total traditional game sales were New York, $7.7 billion; California, $6.3 billion; Florida, $6.1 billion; Massachusetts, $5.2 billion; and Texas, $5.1 billion.
The top 2 states with the largest growth in traditional game sales were Wyoming, 90%, and North Dakota, 32%, but they don’t have instant tickets, so the January Powerball was primarily responsible for these big numbers.

4. Juiced for the Biggest Jackpots
As mentioned on page 1, the lottery story of 2016 was January’s $1.58 billion Powerball, which 60% of Americans played, or almost 200 million people, with approximately 50% spending from $11 to $100 during the two months prior to the drawing.
With January’s jackpot, Powerball sales for the first 10 months of 2016 totaled $5.91 billion while Mega Millions generated $2.04 billion in sales for the same period.
According to a computational forecast, Mega Millions is likely to generate more sales during because any jackpot more than $400 million attracts many players and there is a more than a 70% probability of that occurring during 2017.

5. Life Changes in an Instant
Although instant games ($45.2 billion for 2016, a 61.8% share) generate more sales than draw games, the profit from instant games is a lower percentage of sales.
Most lotteries are offering game families, thus leveraging sales, advertising and marketing across multiple price points, simultaneously. Many lotteries are promoting more instant games with lower price-points because they attract more new players.
Research from Scientific Games found that 75% of casino slot machine players also play lottery games; 50% of lottery instant game players also play casino slot machines; 74% of casino slot machine players also play lottery instant games.

6. Buyer Behaviors
The June 2016 Gallup poll and data from The Media Audit both help debunk the myth that only lower-income Americans play the lottery and that lotteries consciously promote the games to those who can least afford to play.
Gallup reported that 40% of households with less than $36,000 income played while 56% of those with household incomes of $36,000–$89,999 played and 53% of those with household incomes of $90,000+ bought a ticket during the previous 12 months.
In The Media Audit’s Fall 2016 Orlando, FL survey, the largest age group to have purchased a lottery ticket during the past 4 weeks was 35–44, at 22.2%, followed closely by 55–64, at 21.4%.

7. Evolving With Technology
Many states, such as New York, Michigan and Nebraska, are using mobile apps to engage with their citizens. Michigan, for example, has added QR codes to in-store instant ticket displays, so people can scan them to see an updated list of prizes.
New York included a 3D app with its July Gold Castle $5 scratch ticket. Players download the app and scan a barcode on the ticket, which reveals a 3D rendering of a medieval castle. By tapping the windows, they can see the game’s cash prizes and their odds.
During July 2016, New Mexico became the fifth state (California, Missouri, North Carolina and Pennsylvania) to offer play-at-the-pump technology at convenience stores, allowing customers to purchase a ticket while filling their vehicle’s tank.

8. Advertising Strategies
TV and digital can be used in complementary ways to attract participants, such as using early morning TV to motivate consumers to purchase a lottery ticket when they stop at their local convenience store on the way to work to buy breakfast and/or coffee.
States that have difficulty attracting consumers to Powerball and Mega Millions when the jackpots are “smaller” can adopt Tennessee’s “Wouldn’t at Least $40 Million Change Your Life?” campaign, and promote the other ways to become a winner.
Because TV reaches a very large portion of seniors, or Baby Boomers, lotteries could promote games based on retirement years activities, such as “You Could Have a Much Bigger Boat” or “Travel to Every Corner of the World.”

9. New Media Strategies
As cited in a February 2017 New Media Insights Report, consumers expect more from loyalty programs. Lotteries must reward points for more than making purchases: referring a friend, posting a win on Facebook, video of what was purchased with winnings, etc.
Since themes attract a significant number of scratch-ticket buyers, lotteries may want to try themes that are more targeted than simply sports, games and holidays, such as “foodie” themes to attract Millennials.
Reward lottery winners who provide periodic updates via social media about how their lives have changed with special loyalty-program points, especially those who are volunteering their time and/or money to help various charitable and community organizations.